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Vehicle-2-Grid leaps towards commercialisation, but it is not there yet

EV-charging-station-small

Earlier this year, my colleague Philippa Hardy wrote about the launch of OVO Energy’s Vehicle-2-Grid charger. This Vehicle-2-Grid (V2G) charger is set to be used in project Sciurus, one of eight Innovate UK V2G demonstration projects launched this year. From this summer, the projects will begin distributing thousands of these units across the UK, as the largest ever deployment of V2G technology across Europe.

While exciting and poised to revolutionise electricity markets, V2G remains at this demonstration phase rather than being fully ‘commercialised’. We recently reviewed the current status of this V2G market and in this blog we share some key findings.

What is V2G?

This technology offers bidirectional charging of EVs – the ability for the vehicle to both charge and discharge electricity. The ability to discharge electricity means EVs can act like a static energy storage device. And that device can have a great number of applications depending on the scale of the activity, so you will hear about V2Grid, V2Home, V2Building, V2Community, or quite broadly V2X.

With forecasts suggesting European EV adoption will reach millions of vehicles within only a few years, the potential for energy storage activities from V2G could be tremendous.

Delta-ee’s V2G analysis

Last month we analysed the V2G market, we found the following:

  • 27 demonstration projects have been launched across nine European countries.
  • An estimated 3,010 V2G units are deployed or planned for deployment.
  • Only 1 project could be considered commercial.

ev v2g

All 27 are plotted onto the graph above, with the 1 commercial project highlighted in red. There are three key findings to take away from this graph.

Scaling up

The first thing to note is that the projects appear to get larger over time. While earlier projects were simply demonstrating the technology could work on an individual and local basis, in more recent years there has been an imperative to show V2G can work with tens, hundreds or thousands of units. Broadly, we can interpret this as a progression in project purpose from a ‘proof of application’ to the ‘proof of business model’ (the separation can be signified by the orange line).

The North Sea cluster

The UK, the Netherlands and Denmark are outright leaders in hosting these projects. Do not necessarily assume that these will be the richest markets for V2G – they may just prove to have the best access to innovation researchers and innovation funding. Indeed, the ‘scaling up’ trend is heavily influenced by the Innovate UK competition that OVO Energy is participating in. From the analysis, Delta-ee estimates that Innovate UK is responsible for funding 90% of all deployed or planned deployment of V2G units in Europe.

However, Denmark is already host to the one commercial project. With project consortia involving electricity networks and electricity retailers, the UK, the Netherlands and Denmark are likely to be best prepared for V2G deployment in the next few years.

The market leaders

The first commercial project, in Denmark, involves a fleet of 10 electric vans owned by Frederiksberg Forsyning. It is noted as Nuvve’s project, but in fact is delivered by a consortium of Nuvve, Nissan and Enel. These three companies are considered the leaders for their respective technologies. Nuvve is a software developer providing the platform for V2G. Nissan’s vehicles, the LEAF and the eNV200 are V2G-enabled as standard. Enel has been at the forefront of V2G unit manufacturing in Europe.

Again, the fact that these are leaders in the demonstration phase does not signify that they will inevitably lead the market if/when V2G becomes mainstream. But, they are certainly the ones to watch. For a more detailed analysis on V2G projects across Europe, please download our whitepaper. If you have any thoughts on V2G or would like to learn more about our ‘EV & Electricity’ research, please do get in touch at alexander.lewis-jones@delta-ee.com.

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