The potential value to be earned from Vehicle to Grid (V2G) charging of electric vehicles (EVs) in the UK is highly dependent on the customer, a report has said.
Cenex explained bidirectional V2G charging to deliver greater value and revenues than unidirectional Smart Charging, with an average V2G chargepoint capable of generating £186 of additional annual value when compared to unmanaged charging through energy bill savings and additional revenue from grid services. Smart Charging, when compared to unmanaged charging, was found to only capture 40-80% of V2G’s value – reaching the higher end when V2G is unable to access grid services.
A further finding was that revenues increase the longer vehicles are plugged in. If V2G chargepoints have EVs connected for 75% or more of the time, this could generate £436 of savings a year compared to unidirectional Smart Charging. Basing this on an estimated 1mn EVs in the UK with such plug-in behaviour, this group could generate an annual revenue of £436mn alone. The majority of V2G revenues was found to come from providing grid services, including Firm Frequency Response (FFR), but the report warned there was a significant risk to this with at least half of the revenue at risk from falling FFR prices.
Robert Evans, Cenex CEO, said the report had aimed to bridge an information gap when it comes to V2G value. Evans explained: “While there has been an increasing focus on Vehicle-to-Grid charging, until now there has been a lack of clear data on its costs and opportunities, holding back the ability of organisations to build effective business cases.”