T&E Study: V2G Saves Consumers Up to 100 Billion Euros - Battery on Wheels

The use of electric vehicles for energy storage and feeding back into the power grid could soon save Europe's energy providers and drivers billions of euros per year. This is the calculation made by a new study from the European environmental umbrella organization Transport & Environment (T&E). Electric vehicles equipped with bidirectional charging capabilities can function like "batteries on wheels," absorbing electricity during times of surplus and releasing it again when demand is higher, according to the organization. Without frameworks that enable and promote bidirectional charging, however, their potential cannot be fully exploited. The so-called Vehicle-to-Grid technology (V2G) could alleviate the German energy system by 8.4 billion euros annually by 2040, according to the report by the research institutes Fraunhofer ISI and ISE for T&E. Across the EU, the savings would amount to 22 billion euros per year, corresponding to a reduction in the costs of constructing and operating the EU energy system by 8 percent. This could lead to savings of more than 100 billion euros between 2030 and 2040.

Integration of Renewable Energy The massive potential cost reductions are due to bidirectionally charging electric vehicles contributing to the energy transition with increasing amounts of electricity from renewable sources. This is particularly true for solar energy. The need for stationary battery storage in the EU could be reduced by up to 92 percent by 2040. EU-wide, the installed PV capacity could increase by 40 percent through V2G. By then, the German electric vehicle fleet could cover up to 6 percent of the EU's annual electricity demand through feedback. Thus, electric vehicles could become a relevant 'electricity supplier' and reduce the need for additional generation capacities.

"Electric vehicles decarbonize road traffic, but they also have further advantages for our economy and our energy system that need to be realized. Bidirectional charging will provide us with free batteries on wheels. This also reduces the pressure to build energy storage for excess wind and solar power," explains Kim Kohlmeyer.

Electricity Bill and Battery Lifespan

Since electric vehicles can draw excess, inexpensive electricity or solar energy from home, German electric vehicle owners could save up to 45 percent of their annual electricity bill through bidirectional charging. This corresponds to savings of up to 727 euros per year, depending on factors such as the location of the vehicle, the size of the vehicle battery, and whether the house has a solar system or not. In the long term, bidirectional home charging stations will only cost 100 euros more than conventional wall boxes.