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Volvo Cars: New Energy Solutions Division to Drive E-Mobility
Under the umbrella of the newly established "Volvo Cars Energy Solutions" business unit, Volvo, the subsidiary of the Chinese Geely Group, has announced the bundling of various technical solutions and services that aim to simplify not only the charging of electric cars but also energy storage. This initiative aims to support the transition to a smarter, more sustainable, and more efficient energy grid. Through bidirectional charging, electric vehicles would become energy storage units, capable of balancing peak loads and reducing the reliance on power from fossil sources, also making cost savings possible.
The new Volvo EX90 is the first model from the Swedish premium car brand to have the necessary hardware and software, which will be gradually supplemented and updated. This allows the large electric SUV not only to charge bidirectionally but also to directly store solar energy.
First V2G Pilot Project in Gothenburg
Together with Göteborg Energi Nät AB, the local energy grid operator in Volvo’s hometown, the Swedish premium car manufacturer is now launching one of the first Vehicle-to-Grid (V2G) pilot programs. As part of this, V2G technology will be integrated into the local energy grid and domestic environments and tested by real customers. A cost-effective wall box with alternating current (AC) will be used to emphasize everyday feasibility and accelerate the technical introduction. The pilot project aims not only to promote acceptance by grid operators and demonstrate the benefits of V2G to them but also serves as a test laboratory outside the company's own research and development centers to trial new future technologies.
"With bidirectional charging, the high-voltage battery in the electric car can be used as an additional energy source to power the household, other electrical devices, or another Volvo electric vehicle," says Alexander Petrofski, the new head of Volvo Cars Energy Solutions.
From his perspective, the next step would be to introduce this function throughout Sweden, paving the way for even broader acceptance of similar charging and energy storage services across Europe.
Sufficient Unused Battery Capacity
On the path to becoming an automaker of purely electric vehicles by 2030, the Geely subsidiary aims to bring millions of electric cars onto the road in the coming years. According to internal calculations, such a fleet will have a cumulative battery capacity of around 50 gigawatt-hours (GWh) by the middle of the decade. Although the vehicles also consume several terawatt-hours (TWh) of electricity annually, this energy demand can be flexibly managed through intelligent charging, they are convinced. On an average drive in Europe, the brand's electric vehicles consume less than 10 kWh per day. 90 percent of all daily trips use no more than 20 kWh. This leaves enough battery capacity that can be used for other purposes.
Also Interesting from a Cost Perspective
When using renewable energy sources, not only is the climate relieved. V2G also offers financial benefits for Volvo customers if they feed the energy stored in the e-car back into the grid during high demand (and corresponding remuneration).
"With the help of smart charging, the all-electric Volvo can be charged at the most economical times in terms of sustainability and cost-effectiveness," says Alexander Petrofski.
The energy can be used at a later time when prices are higher and the energy mix is less sustainable. By building an intelligent energy ecosystem around the vehicle and its battery, customers can save money and reduce their CO2 emissions. Energy companies benefit from lower grid investments and reduced environmental impact.
Significant Revenues Expected in the Sector
V2G is just one of the techniques that the Volvo Cars Energy Solutions division wants to offer as part of a holistic ecosystem. The offering is supplemented by Vehicle-to-Home (V2H), which allows energy to be fed back into the home and reduces the household electricity bill, and Vehicle-to-Load (V2L). The electric car's high-voltage battery supplies energy to other external consumers such as an e-bike or a cooler box. The company expects that over time, the division will generate considerable new revenues each year with energy-related products and services, as well as with new products that Volvo Cars has not previously offered. This strengthens the core business of the Swedish premium car manufacturer and provides additional value to customers.
Translated automatically from German.
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