The Potential of Vehicle-to-Grid Technology

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Written By Jasmine Young

Jasmine Young is a passionate writer and researcher specializing in battery technology, with a keen interest in its applications across various industries and its role in shaping a sustainable energy future.

The future of electric vehicles (EVs) is bright, as the world embraces the transition to a more electric world in a bid to reduce carbon emissions and dependence on fossil fuels. One technology that could help accelerate this transition and unlock the potential of green energy, energy storage, and smart systems is vehicle-to-grid (V2G) technology.


V2G technology is a revolutionary solution that enables electric vehicles to transfer power back to the grid. In essence, the V2G charging process facilitates bidirectional energy flow between EVs and the electrical grid, allowing excess battery energy to be sold back to the grid when needed. This technology, still being developed, installs bi-directional power transfer in EVs. Although V2G is not yet widely adopted, it has huge implications, particularly for the energy and mobility sectors.

This article aims to introduce V2G technology, explore its benefits and challenges, and the implications of its implementation for the energy and mobility sectors.

Benefits of V2G Technology

V2G technology has several potential benefits in the energy sector:

  • Grid Balancing: V2G technology can help stabilize the electrical grid by balancing the differences between peak load and peak energy demand. This technology can help curb power surpluses that can lead to the shutdown of renewable sources and blackouts.
  • Decarbonization: V2G technology promotes the use of green energy and renewable sources. By smoothing the integration of intermittent renewable energy, V2G could help reduce carbon emissions within the country.
  • Peak Load Savings: By reducing the need for grid-scale storage, V2G can help save both energy and money for utilities. The potential for cheaper charging rates for EVs also exists with V2G technology.
  • Energy Management Optimization: V2G technology allows for intelligent and automated scheduling of energy storage and release. This optimized use of battery pack ensures efficient usage of the stored energy, which in turn maximizes the lifespan of the battery.
  • Additional Revenue Streams: V2G offers opportunities to make money from selling or leasing energy storage in a vehicle’s battery. For Fleet operators, this could be a significant revenue stream or a means of reducing costs. V2G technology is a potential fit-for-purpose solution for busbars as it can provide power to homes close to the grid where they could cut down on power bills saving money.
  • Batteries Last Longer: V2G technology manages the battery’s charging and discharging cycles, reducing the need for a new battery and extending the battery’s life.

V2G technology also has significant implications for mobility sector:

  • Reduce Charging Time: In V2G charging, EVs are not solely dependent on the national grid. They have the potential to offer their excess electricity into the grid. This could reduce the amount of time it takes to charge EVs.
  • Reduce Charging Costs: EV manufacturers and fleet operators could enjoy lower charging costs since they would be able to sell their excess energy to the grid, instead of paying during charging.
  • Energy Efficiency: V2G charging saves energy consumed while on the road when recharging. It is a smarter solution, saving energy and money spent on road charging.

    Challenges of V2G Technology

Despite its many benefits, V2G technology also has some significant challenges that need to be addressed:

Hardware and Devices: One of the significant barriers to the widespread adoption of V2G is hardware and device limitation in the country. The electrical system has to support bi-directional power transfer from multiple cars. Collaboration between energy and mobility sectors is crucial to developing hardware and software that can handle V2G charging.
Communication: Communication between EVs and the grid is essential for V2G technology to work. The International Organization for Standardization’s (ISO) 15118-20, which defines the V2G communication interface, provides a common platform for engineers from the energy and mobility sectors.
Costs: The cost of implementing V2G structure is a significant barrier to entry. Although costs have reduced significantly over the years, it is still expensive to install V2G infrastructure.
Management of Services: In the absence of a general management system, it is challenging to manage V2G services safely and quickly. Appropriate management of the V2G services and safety standards assumes a critical role.
Lack of Connection Inlets: If a location is lacking connection inlets, i.e. it has no power connection, then there would be no benefit derived from V2G charging systems. A lack of connection inlets is one of the significant obstacles to V2G implementation.

Implications of V2G for the Energy and Mobility Sectors
The utilization of V2G has significant implications for the energy and mobility sectors such as:

Energy Security: V2G helps strengthen the transmission and distribution systems which in turn facilitates enhancing national energy energy security. In the case of a power outage, car batteries can be used as backup systems.
Retrofit Existing Infrastructure: V2G technology could be fitted into future ev charging infrastructure upgrades or could even be fitted to already existing infrastructure.
New Business Opportunities: The implementation of V2G infrastructure opens up opportunities for businesses to participate in the renewable energy industry, vehicle rental services and V2G equipment manufacturing.
Grid Management: V2G helps balance the grid, making it easier to manage energy supply and demand. The grid will have additional sources of energy supply during peak energy demand which can significantly improve balancing market efficiency.
Cost Reductions: The deployment of V2G can lower the cost of balancing peak demand, in addition to preventing the need for transmission and distribution components upgrade. It helps reduce the cost of making renewable energy when the electrical system adopts optimal V2G charging solutions.
Potential Electric Vehicle Fleet Growth: The adoption of V2G charging infrastructure also helps with the growth of EV adoption, as it provides potential new revenue streams and advantages to fleet operators.

V2G technology is a revolutionary solution that takes advantage of the growing number of electric vehicles on the road to support grid stability and decarbonization. Although there are several challenges that need to be addressed before V2G technology can become a standard feature, much progress has been made.
Collaboration between the energy and mobility sectors is crucial to the seamless integration of V2G with the development of compatible standards. With the potential of V2G becoming mainstream, it can provide additional revenue streams for fleet operators or individual EV drivers, improve EVs infrastructure, and support the transition to a greener energy system.
V2G is an innovation that will play a key role in the energy landscape of the future. Its success largely depends on the willingness of energy and mobility sectors to collaborate towards a more sustainable future. The aptiv-Nissan Leaf Powerloop bungle project has shown that V2G technology can deliver significant cost and energy-saving benefits for businesses. The Energy Saving Trust has published a best practice guide for V2G charging research and its implementation. It’s being touted that with the right investment and regulation, V2G charging could become a significant contributor to carbon emission reduction and technology advancement.