From vehicles to power banks: The role of electric cars in the energy transition
By: Kurt Østrem, CEO of Zaptec
As society electrifies, managing our energy supply becomes a critical challenge. With the rise of electric vehicles (EVs), we have the chance to use them as vital resources for both households and the grid. Vehicle-to-grid (V2G) technology, enabling EVs to act as mobile energy banks, is a promising solution for a more flexible energy system.
The challenge with the grid
Our electricity grid is under pressure. The demand for electricity is rising, from both households and industry, in line with Europe’s ambitions to reduce greenhouse gas emissions. To meet this demand, it is crucial to use the grid more efficiently.
Grid operators in Europe have already implemented tariffs and incentives designed to promote sensible electricity usage. This includes encouraging households to spread their electricity consumption throughout the day, thereby reducing the load on the grid during peak periods.
A proposed solution is using home batteries, including EVs, to store renewable energy. By storing electricity from, for example, rooftop panels in car batteries, households can reduce grid reliance during peak times, benefiting both the grid and consumers with lower costs.
EVs as power banks
Electric cars are stationary approximately 95 percent of the time. This represents a massive potential to use car batteries as power banks. Zaptec is already working on solutions that adjust charging according to the household’s load, to avoid overloading the grid. But the possibilities do not stop there. Through vehicle-to-grid technology (V2G), EVs can also supply electricity back to the grid or to the home, helping to balance demand during periods of high energy consumption.
Another key factor is that EV batteries are continuously updated with the latest technology, making them more relevant for V2G applications than investing in an expensive, standalone battery that could become outdated in just a few years. Now that’s something to think about, as it adds another compelling reason to invest in an EV.
However, for this technology to become a reality, a common standard for communication between the car, charging station, and grid is necessary. An international standard, ISO 15118, ensures that cars and chargers can communicate effectively with the grid. This is a significant step forward, but its implementation will require time and cooperation among car manufacturers, charging station providers, and grid operators in various markets.
Technology, incentives, and regulation
Developing V2G technology requires both innovation and appropriate incentives. The government must ensure that frameworks are in place so that grid operators can automate and streamline operations, which is crucial for scaling up V2G.
However, it is important to emphasise that the responsibility for this development does not lie solely with commercial actors. The government must take responsibility and actively support progress through political measures. For example, in the UK, installation of smart meters is a legislative obligation of energy suppliers.
This does not mean that we as commercial actors can afford to be passive. Innovation in the private sector must go hand in hand with public measures to achieve the best outcomes. Collaboration between industry and government is key to realising the full value of technological advancements like V2G.
The road ahead
So, what do we do now that we know this? Well, for Norway, which is already a global leader in EV use, it is important to take the next step towards a more integrated and flexible energy infrastructure. This involves not only testing and piloting new technologies but also ensuring that regulations and incentives facilitate widespread implementation.
With the right effort, EVs can become a key resource in the transition to a sustainable energy system, where each car serves not only as a means of transport but also as an integral part of our future electricity grid.
Let’s make it happen.