Who doesn’t love a good deal?
A new report from EY and Eurelectric (a federation of the European electricity industry) makes the case that technologies that optimize electric-vehicle charging can offer just that––to grid operators and EV owners alike.
The research suggests that vehicle owners could save as much as 20% on their total cost of vehicle ownership by “moving to electric, smart-charging, and selling energy back to the grid.” And grid operators in Europe, on which the research focused, could save €4 billion ($4.3 billion) annually thanks to such technologies.
The report adds to a growing body of efforts and examples of EVs becoming more closely intertwined with the grid.
“We figured if we want to go faster on decarbonizing transportation, the solution has to be better and cheaper for customers––period,” Serge Colle, EY global power and utilities leader, told Tech Brew.
Growing demand: Being able to store energy for later use is becoming increasingly important as grids source more of their energy from renewable sources like wind and sun, the report notes. EVs can provide a flexible option for energy storage; emerging technologies enable them to store excess energy in their batteries and then discharge energy back to the grid when it’s needed.
“Introducing renewables to the system while at the same time adding a lot of new energy-using machinery is going to put different kinds of strains on the system,” Kristian Ruby, Eurelectric secretary general, told Tech Brew. “Essentially, flexibility is really, really important for the system.”
Per the report, the demand for such “flexibility resources” is expected to more than double in the next five years as Europe’s power grids shift to more renewable sources. Meanwhile, EY estimates that European roads will have more than 50 million EVs on them by 2030, or some 15% of the continent’s total vehicle stock.
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“EVs––already abundant and rapidly growing in number––are a readily available, scalable, and cost-effective asset to provide that flexibility,” Colle said in a statement. “By shifting EV charging to optimal times and enabling V2G, we can reduce energy costs for consumers substantially, alleviate grid stress, and support the integration of renewables into the energy system.”
Possible savings: The report found that drivers who swap out their fossil fuel-burning vehicle for an “equivalent” EV could generate “annual savings of 4% in the compact segment, 9% in the family car segment, and 14% for large/sports utility vehicles…on average across six key markets in Europe.”
For example, the report found that drivers in Germany who switch to an electric SUV could save 29%, or €3,000, on total cost of ownership.
As for the grid, smart charging and V2G also hold the potential to help manage “grid congestion” and reduce the investments needed to upgrade infrastructure, according to the report. In addition to the estimated €4 billion in annual cost savings, “EVs could contribute up to 4% of Europe’s annual power supply” by 2030. And “by 2040, if all EVs are capable of bidirectional charging, over 10% of Europe’s power needs could be stored and reinjected when needed.”
Bottom line: The findings come at something of an inflection point, with markets like Europe well on their way to electrifying transportation, but with bumps in the road, like stubbornly high prices, as well as shifting global policy. Ruby’s message to policymakers is to “stay the course.”
“Things are happening on the ground. We can speed up. And there’s [an] opportunity to make it happen, if we get the regulation right,” he said. “Do not flip-flop and give up and go in the opposite direction.”