Vehicle-To-Grid(V2G), is similar to regular smart charging. Smart charging, also known as V1G charging, enables us to control the charging of electric cars in a way that allows the charging power to be increased and decreased when needed.
V2G goes one step further, it enables the charged power to also be momentarily pushed back to the grid from car batteries to balance variations in energy production and consumption. This thus opens new opportunities for energy trading and smart energy management. Energy should be either used where it’s produced or stored somewhere for later usage. Therefore, the growth of renewables inevitably makes our energy system more volatile, requiring new ways to balance and stored energy to be used.
The yearly sales of EVs is expected to reach over 20 million before 2030, which means that we’ll have over 100 million tiny energy storages on wheels with an aggregated storage capacity of 5 TWh. Vehicle-to-grid technology enables us to make the best use of the existing and future population of vehicles. V2G technology considers EVs as movable energy storage, as shown in the above picture. Thus, V2G technology will solve the problem of energy storage and will help in unlocking the energy stored in electric vehicle batteries so that households could support the grid when demand peaks. The benefits of V2G for buildings are visible when the electricity from car battery is used where it is needed the most. V2G helps balance out electricity demand and avoid any unnecessary costs for building an electricity system.
Since V2G solutions are expected to become a financially beneficial feature for energy companies, they provide potential consumers with a clear incentive to take part in this venture and encourage several others to do the same. So, the consumers may get some benefits for adopting the technology at the initial days. According to a research, the global V2G technology market will garner revenue around $17.43 billion by 2027 by recording a compound annual growth rate of 48% between 2020 to 2027. By 2050, up to 45% of households would actively provide vehicle-to-grid (V2G) services, according to National Grid Electricity System Operator.
V2G technology has some cons too like, it is not a cheap source when compared to large power plant power generation. Large scale use of these vehicles may lead to technical problems, compatibility issues and other difficulties may arise when small scale generations are integrated into large power generating units, etc. which is normal for initial stages. Every new technology has lots of disadvantages in the initial days, but with time, innovation happens and these cons start getting eliminated. V2G technology is thus very promising and it can clearly be regarded as quite the future that we are all rooting for.