We all know electric vehicles are better for the environment than those with traditional combustible engines. But there’s another way EVs can improve energy sustainability, even for people who don’t own one themselves: Vehicle-to-Grid (V2G) technology.
V2G technology is a practical solution for energy efficiency, cost savings and grid stabilization that is already being used in several countries.
What is Vehicle-to-Grid (V2G) Technology?
Vehicle-to-grid technology is a system where electric vehicles not only consume energy, but can also push excess electricity back to the power grid.
Electric vehicles equipped with bi-directional charging systems can allow energy to flow both ways – from the grid to the car and from the car back to the grid. This two-way energy exchange means EVs can act as mobile energy storage units, like batteries on wheels, and also help balance electricity demand and supply during peak usage times.
Here’s an example: Imagine thousands of EVs parked and plugged in during the day, all storing energy when grid demand is low. Later, during a high-demand hour, these vehicles can release their stored electricity back into the grid.
Vehicle-to-grid technology turns EVs into active grid resources instead of just passive energy consumers.
The Benefits of V2G for the General Public
The benefits of vehicle-to-grid technology extend beyond environmental impacts. For the general public V2G can also provide cost savings, better energy reliability, and a greener future.
1. Lower Energy Costs One major benefit of vehicle-to-grid systems is that EV owners can offset their charging costs. By selling surplus energy back to the grid during peak hours, EV owners can lower their charging costs or even generate income. In 2024, France became the first country to enable commercial V2G technology for electric vehicle owners. Owners of Renault 5 EVs in France can now earn money by selling surplus power to the grid operator.
2. Improved Grid Reliability As renewable energy sources such as solar and wind power become more common, grid stability becomes more challenging. These energy sources are known as intermittent resources, because their supply can fluctuate. V2G technology helps stabilize the grid by acting as a buffer. EVs can store excess renewable energy during peak production hours and then send it back to the grid when demand exceeds supply, ensuring a more reliable flow of electricity.
3. A Greener Planet V2G technology accelerates the transition to renewable energy by reducing dependence on fossil fuel-powered grids. This supports efforts to combat climate change and lower greenhouse gas emissions. By turning EVs into energy providers, V2G can also encourage faster EV adoption, and more EVs on the road equals fewer CO2 emissions.
4. Emergency Power Supply V2G-enabled EVs can act as backup power sources for households during outages. This is a particularly valuable feature in areas prone to natural disasters or grid failures. In Japan, V2G technology has been tested in regions affected by earthquakes, with the goal of using EVs to provide temporary electricity to homes and emergency centers during grid failures.
The Benefits of V2G for Businesses and Governments
Businesses and governments can also reap the benefits of vehicle-to-grid systems by harnessing them to optimize energy use, reduce costs, and hit their sustainability targets.
Countries including Japan, Denmark, the Netherlands and the U.K. are leading the charge in V2G technology, with large pilot projects already underway. Many governments and businesses recognize the benefits of V2G technology including:
1. Cost Savings Businesses and governments operating large fleets of electric vehicles stand to gain significantly from V2G technology. By integrating V2G systems, vehicle fleets can store electricity when rates are low and sell it back to the grid during peak hours. This strategy reduces energy costs and increases overall operational efficiency. London, England tested the world’s largest vehicle-to-grid project, equipping nearly 100 new zero-emission electric buses with bi-directional chargers for what it dubbed the “Bus2Grid” project.
2. Power Grid Stability Governments are under pressure to modernize their energy infrastructure and V2G technology can support grid resilience by increasing the ability to balance energy supply and demand. During peak demand times, V2G systems can alleviate grid stress, reducing the risk of blackouts. For example, during a historic 10-day heat wave in California, a San Diego County school district sent excess power from its seven electric school buses back to the state’s overwhelmed grid. This provided enough power for 452 homes each day of the heat wave.
3. Renewable Energy Expansion Governments working to meet renewable energy targets can leverage V2G systems to store and distribute excess renewable energy. This reduces the need for expensive grid infrastructure upgrades and accelerates the adoption of cleaner energy sources.
4. Advancing Sustainability Goals Both businesses and governments are increasingly focused on achieving carbon neutrality. By adopting V2G technology, they could reduce reliance on fossil fuels and minimize their carbon footprint.
The Future of Vehicle-to-Grid Technology
V2G advancements alongside increasing EV adoption and improved grid infrastructure are creating the opportunity for V2G to become a major part of the energy ecosystem.
As more consumers and businesses switch to electric vehicles, the potential for V2G technology grows exponentially. BloombergNEF’s Electric Vehicle Outlook 2024 projects that there could be 722 million passenger EVs on the road in 2040. Each of these EVs can become a mobile energy storage unit, creating huge opportunities for grid integration.
Innovative Startups Improving V2G Technology
Several startups are pioneering advancements in V2G systems and partnering with governments and corporations to make the technology available to the public:
Nuvve California-based Nuvve is a pioneer in V2G technology, providing platforms that allow EVs to connect to the grid and share stored energy. Its solutions have been deployed on five continents including government partnerships in Japan, the E.U. and the U.S.
Moixa This British cleantech company is the U.K.'s leading smart battery company, and it develops technology to optimize EV charging and V2G interactions. Moixa and automotive giant Honda have partnered on a vehicle-to-grid project in the U.K.
Fermata Energy Fermata Energy focuses on bidirectional charging solutions for businesses and vehicle fleets. In 2024, Nissan approved an enhanced Fermata Energy bidirectional charger for use with the Nissan LEAF, which is the first mass-produced bidirectional-enabled electric vehicle.
The Mobility House This German-based technology company develops smart energy solutions that integrate EVs into the power grid. In 2023, The Mobility House launched “eyond”, a V2G service that aims to generate revenue for EV drivers while stabilizing power grids.
While the future of V2G technology looks bright, there are several challenges still to be solved. These include the need for widespread bi-directional charging infrastructure, grid compatibility, and consumer awareness. Auto giants and startups alike are making advancements in smart grid technology, and this coupled with growing support from policymakers could drive the solutions needed to overcome these obstacles.