Driving the Grid: The Role of V2G in Modern Energy Ecosystem

Abstract

The automotive sector has been rapidly evolving towards more sustainable practices, with electric vehicle (EV) manufacturers consistently innovating to develop the EV of the future. The growing demand for electricity offers numerous opportunities for innovative technologies and services to be introduced; one of them is the Vehicle to Grid (V2G) concept, which explores the possibility to transfer part of the energy stored in the EVs’ batteries back to the grid to be used in times of need. This research aims at investigating how V2G could impact the currently evolving energy ecosystem in Sweden, where automotive industry is now a huge stakeholder. The research explores opportunities and challenges of this technology. In particular, the second part of the paper focuses on possibilities for end-users to benefit from this service. A review of the previous literature and discussions with eleven experts from various industries reveal that the industry currently lacks a solid business model to market this service. Additionally, the adoption is hindered due to legal and technical factors which are evolving slowly in the Swedish bureaucratic landscape. There must exist a significant enduser incentive for widespread adoption and various environmental aspects are also to be explored extensively. Building on the empirical findings from these interviews, a scenario planning analysis has been carried out to assess potential end-user benefits. The resulting numbers from the four different scenarios show a significant potential for the end-users to generate financial benefit out of this service. However, considering the bigger picture, other factors such as flexibility and ease of use may be the compromise end-users have to make to maximize these benefits. Hence, a balanced approach is recommended. Considering this analysis, the research presents some suggestions on aspects to consider and improve in order for V2G services to be democratized, such as standardizing charging infrastructures and solving GDPR issues. Future courses of action are also considered in the final section of this paper.