As Europe transitions to clean energy and zero-emission transport, electric vehicles (EVs) are emerging as 'batteries on wheels' with the potential to revolutionise our energy system. A new study by the research institutes Fraunhofer ISI and ISE reveals how bidirectional charging could transform EVs into 'virtual power plants', delivering substantial economic benefits.
Key findings:
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Massive energy system savings: By 2040, widespread adoption of bidirectional charging could reduce annual energy system costs across the EU, by 8.6%, amounting to €22.2 billion in savings per year. Even by 2030, savings of 5.5% or €9.7 billion annually are projected. Total savings between 2030 and 2040 could amount to €175.45 billion - which is almost the entire EU budget for 2023. Those saving stem from a reduction of generation capacity, reduction of curtailment as well as reduced fuel consumption.
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EVs as a major power resource by 2040: EVs could contribute up to 9% of Europe's annual power supply, becoming the 4th largest power supplier. During peak demand periods, EVs could supply 15-20% of instantaneous electricity demand, acting as a massive, distributed virtual power plant.
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Boosting renewable energy integration: bidirectional charging could enable an additional 430 GW of solar PV capacity by 2040, nearly doubling the current EU capacity.
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Reduced storage needs: the need for stationary battery storage could be cut by up 92% in 2040, while backup power plant capacity could be reduced by 126 GW.
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EV drivers could save between 4-52% on annual electricity bills, with savings ranging from €31 to €780 per year, depending on factors such as location, solar PV ownership, and vehicle battery size - this does not even include V2G services.
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Grid impact: while bidirectional charging offers positive effects on the low voltage grid, the impact is modest. Potential savings in grid expansion costs could reach €9.8 billion by 2040, but this technology should not be seen as a substitute for necessary grid reinforcement and expansion.
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Battery life considerations contrary to common concerns, bidirectional charging can extend EV battery lifetime by up to 9% compared to standard charging practices.
However, while the benefits are huge the potential is not fully captured today. Not all electric vehicles are V2X capable. Crucially, there are important interoperability challenges as current focus on either AC or DC bidirectional charging by different manufacturers poses a significant barrier to widespread adoption. Ensuring interoperability between all EVs and chargers - by mandating bidirectional capability as a standard at EU level - is crucial for realizing the full potential of bidirectional charging technology.
By leveraging the full potential of electric vehicles as 'batteries on wheels', Europe can significantly reduce energy system costs, enhance grid stability, and accelerate the transition to renewable energy. This approach aligns perfectly with the EU's climate and energy goals, offering a win-win solution for consumers, the energy sector, and the environment.
To find out more, download the briefing and study.
