Opinion: Are Utilities and Grid Operators Ready For Vehicle-to-Grid (V2G) Technology?

Toyota is ready. So is a host of other car manufacturers. Grid operators and utilities – less so.

We are talking about Vehicle-to-Grid technology, also known as V2G. In V2G, electric vehicles (EVs) function as mobile energy storage units, actively participating in energy grids. They can store and discharge energy based on the existing energy needs.?

EVs communicate with the power grid to sell demand response services by either returning electricity to the grid or by throttling their charging rate. EVs can dynamically respond to grid conditions, automatically adjusting their charging rate to help balance supply and demand in the power grid, charging during off-peak hours and potentially supplying energy back during high-demand periods. This helps lower grid stress.

V2G can increase resilience in the power grid, enabling it to stabilize by utilizing the energy stored in EV batteries during peak times, thereby reducing stress on the infrastructure. For EV owners, it can translate to economic benefits, as they can sell back the stored energy at higher prices during peak hours. As detailed in a great article by Landis + Gyr, the benefits don't stop there. V2G can be expanded to V2X (vehicle-to-anything). Just think of the fact that a properly designed electric-drive vehicle might be able to put out over 10kW, the average draw of 10 houses, and you have an idea of the potential.

However, despite the promising advancements in Vehicle-to-Grid (V2G) technology, many utilities and grid operators are far from ready to deliver such services, despite the clear upsides.

The underlying issues include a combination of lack of technology maturation and concern about how our existing infrastructure can handle multi-directional energy (including from cars to the grid, to your home, etc.). Communication between the various parts of the system, and the speed of communication, need to be worked out. So does working out how to smooth out energy use over time – as the grid could otherwise come under immense stress, causing increased risks of blackouts. Furthermore, there are issues around how consumers should be compensated for putting their vehicles at disposal.

As the Landis + Gyr article puts it, “Utilities need to develop methods to capture and return to customers the value that V2G provides to their distribution infrastructure.”

However, such solutions already exist in the market today. We have the sensor tech, the computation, and smart charge features available to automate charging in intelligent ways that support the grid and enable car owners to charge their vehicles in accordance with their preferences. Adding a V2G feature to such solutions is, all things considered, relatively straight-forward. The question is more whether utilities and grid companies can find ways of integrating them at speed.

In order to steer towards a grid system that is ready for V2G integration, a marked shift in approach is indispensable. One of the most effective avenues to foster rapid innovation is through managed API solutions, fostering a collaborative ecosystem that encourages knowledge sharing and co-development. By facilitating seamless integration and interoperability between various systems, managed APIs can act as a catalyst, expediting the realization of a V2G-ready grid system.

Managed API solutions present a promising pathway, a conduit for collaborations that can steer the industry towards a future where V2G technology is not just viable but an integral component of our energy ecosystem.