Business Models for Vehicle to Grid (V2G)

The variable nature of renewable energy has consequences for electricity supply control and management. The control of the electricity grid in most European countries is premised on the ready availability of high energy density fossil fuels, use of which for electricity production (including for electrified transport) leads to adverse environmental impacts. There is progress in using renewable energy sources for electricity generation but they are low density and variable with implications for grid control and management. A projected rise in the use of Electric Vehicles (EVs) produces considerable interest in the impact on grid control, and using the energy storage capacity of EVs as a means for helping with grid management. The EV battery can provide a important service to the grid by providing storage to enable both import and export of power from/to the grid, termed Vehicle to Grid (V2G). Other methods of regulating the intermittent nature of renewables are to use (in addition) stationary batteries. V2G means that the EV battery can be used for peak lopping and frequency stabilisation. Technologies for such power sharing are developing with commercial demonstrators under test. There need to be business models ensuring that EV owners are rewarded for allowing the vehicles to be used for V2G as the EVs cannot then simultaneously be used for transport use and EV batteries may experience additional degradation. There also needs to be a system for ensuring that EVs used for grid management are sufficiently re-charged to meet user needs.