As more consumers purchase electric vehicles in the coming decades, a huge question is plaguing governments and the auto industry: Can the grid keep up with the dramatic increase in demand for electricity?
A professional from a Boston consulting service said, “If these vehicles are connected to the grid for charging at the same time, the grid will collapse.” He said smart two-way charging technology could prevent frequent power outages and skyrocketing energy prices in the future. VEHICLE-TO-GRID (or V2G) technology will play a critical role in the spread of EVs and in preventing worst-case energy scenarios when EV charging demand surges.
Simply put, V2G allows energy to flow in both directions, both from the grid to the vehicle and from the vehicle to the grid. If enough vehicles are connected to the V2G charging system, the strain on the grid can be greatly reduced, as the vehicles themselves can provide additional energy supply during peak usage periods. Millions of electric vehicles are coordinated to participate in grid operations and electricity markets, with a third party combining energy from EV batteries and other off-grid sources into a “virtual power plant” that can be used to supply electricity demand or trade energy.
Millions of electric vehicles will need to be charged in the future, requiring enormous amounts of energy. A recent study of highway charging demand conducted by National Grid showed that “at the busiest time of year, a highway fast charging station may require the same power as a sports stadium or even a small town. This demand comes from passenger vehicles and public and private fleets of electric trucks and heavy-duty vehicles.” Fortunately, many highways overlap with high-voltage transmission systems, which they can use to provide the power drivers need. And since it can take years to interconnect and upgrade these high-voltage grids, it’s essential to start taking action now.”
Many car companies have realized that they must get the grid ready to make electric vehicles more popular. GM, for example, launched GM Energy this October, which includes both GM’s Ultium Home and Ultium Commercial product lines, offering products and services that enable two-way charging. Porsche and Tesla have also recently launched their V2G pilot programs. In addition, Ford has made reverse charging a big selling point for its F-150 Lightning electric pickup truck, which the company says is capable of powering a home in the event of a power outage. V2G technology also has the potential to bring new revenue streams to automakers as they become more connected to the grid.
In addition, engaging EV owners is an equally important thing to do. Companies can do this by compensating EV owners for transferring power from their vehicles’ batteries to the grid during peak hours in return for direct payment and reduced charging rates during off-peak hours. For EV owners, this approach may seem like an inconvenience. But we must influence their behavior and educate them so that they can earn a significant income from V2G technology. Vehicle owners can earn hundreds or even thousands of dollars annually, but only if energy companies and the auto industry need to communicate those benefits to them. We must find a way to make EV owners realize this is worth participating in.
V2G charging may become the industry standard if the industry can do this. Otherwise, regulators may enter the industry and mandate charging posts and vehicles with bi-directional charging hardware. Either way, V2G technology has become one of the keys to the future of electric vehicles.
