Energy market analyst Cornwall Insight has published a report, which has found that electric vehicle (EV) owners can reduce their electricity costs by 70% by exporting electricity through vehicle to grid (V2G) technology.
The report, commissioned by nonprofit smart meter campaign group Smart Energy GB, assesses the value of smart and V2G EV charging within a flexible energy system in three ‘snapshot’ years: 2025, 2030 and 2040. It draws on energy system modelling conducted in another of the analyst’s reports, the Power of Flex: Rewarding smarter energy usage.
Projecting the implementing of different EV charging methods, and the benefits from V2G and smart charging compared to ‘non-smart’ charging, the analysis identifies three key benefits for consumers.
Primarily, it notes that flexible electricity use from EVs supports more renewable generation, lower electricity costs and less carbon consumption for everyone—not just drivers. In the system modelling carried out by Cornwall Insight, in 2030 around 7GW of peak time electricity demand from EVs could be avoided. Cornwall Insight points out that this is more electricity than the capacity of Drax Power Station, the largest in the UK.
On top of this, smart charging could unlock lower network costs and 24% savings on wholesale electricity costs for drivers. EV drivers can engage with smart charging service providers to access rewards for domestic EV charging, such as time of use tariffs and taking part in network management services. For example, earlier this month ScottishPower launched a tariff add-on, which it claims enables users to charge their EV for as little as 2p per mile.
Cornwall Insights modelling suggests that in 2025, smart charging households using a time-of-use tariff could access wholesale electricity prices that are 24% lower on average than those for non-smart charging households.
The third key benefit of flexible EV charging, according to the report, is that exporting electricity through V2G can save drivers up to 70% on electricity. Modelling found that households using V2G capabilities made £320 in gross revenue in 2030 and £250 in 2040.
Addressing the market barriers to EV uptake
Cornwall Insight projected EV uptake using Nation Grid ESO’s Future Energy Scenarios (FES) 2022, shown below.
The report acknowledges various barriers to the widespread deployment of smart and V2G capabilities, primarily that the novel technology can come at a high upfront cost. However, the consultancy assumes that over time this will come down due to competitive offers and propositions for services and routes to market that could deliver for customers.
It notes the Agile Streets project—which used smart metering to enable time-of-use charging at on-street, kerbside chargepoints—illustrated the potential for public smart charging to save drivers about £600 per year in charging costs compared to ‘nonsmart’ public charging. It also touches on provider-specific offers, like Octopus Energy’s PowerPack, which the utility said was the first residential V2G offering.
Indeed, the report states that widespread engagement with smart and V2G charging throughout the uptake of EVs and transition to a net zero electricity system could yield a “significant prize”.
Jacob Briggs, a senior consultant at Cornwall Insight said: “More and more customers are making the switch to EVs. To make the transition as smooth and efficient as possible, embracing smart meter enabled charging is crucial.
“V2G technology has the potential to be a game changer for EV charging, allowing drivers to charge during off-peak hours for lower rates, and even sell energy back to the grid, significantly reducing their overall costs. V2G makes EVs not only the sustainable choice, but also strengthens their case as a cost-effective transportation option.”
Sara Higham, director of corporate affairs at Smart Energy GB, added: “This report clearly demonstrates that, as smart meter-enabled technology becomes more commonplace, the financial and environmental benefits will only continue to grow.”
