The Energy and Climate Intelligence Unit (ECIU) has indicated that should the UK government be slow in the rollout of EV and vehicle-to-grid (V2G) technology, the UK could miss out on £6.5 billion savings on energy bills.
V2G technology can provide a flexible balancing solution by selling electricity back to the grid from car batteries. During teatime peak hours where electricity demand is high, the ECIU believes UK drivers could “earn billions” by selling energy back to the grid.
In fact, the organisation has claimed that, with the impending Zero Emissions Vehicle (ZEV) Mandate set to be announced by the UK government, 13.5 million V2G capable EVs could be available to sell electricity to the grid at times of peak demand by 2035, earning their owners a total of almost £7.6 billion by that time.
However, if the government continues with current proposed targets and is slow in the rollout of V2G, with only 2.3 million V2G capable EVs available by 20305, owners could miss out on £6.5 billion off their energy bills.
“Cheaper renewable power will help to keep EV running costs well below that of petrol cars, but electric cars in turn can also support the grid during peak times. The potential is enormous, enabling drivers to make money simply by plugging in after a day at work,” said Colin Walker, transport analyst at the Energy and Climate Intelligence Unit.
“This small act in turn brings down the costs of running the grid, cutting everyone’s bills, and reducing the quantity of gas we need to import.”
V2G technology works by both managing the time vehicles are charged to utilise periods of abundant, green electricity on the grid, and allowing the vehicles to discharge into the grid at times of constraints.
Perhaps one of the most compelling reasons for why the technology is so promising is its ability to reduce the cost of energy and provide a mobile flexibility service for customers. By allowing vehicles to extract energy at cheaper periods in the day, the vehicles can then provide energy to buildings and other applications. This could also reduce the strain on the grid.
In recent years, there have been numerous trials of V2G, leading experts to describe it as a “proven technology” at Solar Media’s EV World Congress in October, but one with plenty of work still left to do before it would scale.
By 2030, V2G could potentially provide 20GW of power, replacing 20 gas power plants at times of peak demand in winter, the ECIU said.
