UK looking to give carmakers incentives to turn EVs into ‘power plants on wheels’
The UK government is considering offering incentives to car manufacturers to add vehicle-to-grid (V2G) technology to electric cars as part of its zero-emission vehicle mandate review.
The technology allows drivers to charge automatically when electricity is cheap overnight and sell it back to the grid during high demand periods. This capability could help balance the grid during times when renewable energy generation is low due to still, cloudy or dark conditions.
Potential Benefits
V2G technology could reduce the need for expensive gas power plants to fill supply gaps and lessen the load on the electricity grid. Home batteries can perform a similar function, but V2G offers a distributed solution that could grow with the number of electric vehicles on the road.
The National Energy System Operator estimates that by 2030, V2G-equipped vehicles could provide 1.2 gigawatts of power on demand, equivalent to a power station. This could grow to as much as 41 GW by 2050, meeting more than a quarter of peak energy demand.
Controversial Incentives
Under the proposed plans, carmakers could earn credits worth around £4,000 each for installing V2G technology. These credits would allow manufacturers to sell additional petrol cars without risking fines for missing zero-emission vehicle targets.
Vehicle to grid is exciting technology that could help balance the grid and cut bills, but carmakers should only be rewarded if it's actually used, not just for fitting it.
Industry Concerns
Environmental groups warn that the incentives could lead to an additional 147 million tonnes of carbon emissions by 2050 if electric vehicle sales targets are reduced. Campaigners also note that few drivers currently own the expensive chargers needed to utilize V2G technology.
Vicky Edmonds of the Electric Vehicle Association England emphasized that consumers are still grappling with more immediate concerns like vehicle costs and charging infrastructure. She argued it's premature to reward manufacturers for technology that hasn't been widely tested at scale.
Current Implementation
Some drivers in the UK, France, and Germany already sell electricity back to the grid through companies like Octopus Energy, Renault, and BMW. Octopus Energy claims drivers using their service could save up to £620 annually through V2G technology.
The government is currently reviewing its zero-emission vehicle mandate, with decisions expected to impact the future of both electric vehicles and V2G technology in the UK market.
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