Vehicle to Grid Market to Reach $190.7M by 2022
The market for technologies that use plug-in electric vehicles to provide services to the grid will reach $190.7 million by 2022, according to a study by Navigant Research.
“Vehicle to grid” technologies are a suite of hardware and software technologies that enable plug-in electric vehicles to participate in grid services, such as ancillary services markets, or the operation of microgrids. Plug-in electric vehicles can provide services to the grid by changing the rate at which they consume power or by providing power back to the grid.
According to the report, Vehicle to Grid Technologies, the purposes of making a plug-in electric vehicle grid-enabled includes renewables integration, accrual of revenue from grid operator-managed ancillary services markets and/or emergency power generation.
The US Department of Defense has been a significant proponent of such technology. It announced in early 2013 that it would invest around $20 million to install 500 vehicle to grid-enabled plug-in electric vehicles in military bases in specific US electricity markets by the end of the year.
Additionally, demonstration and pilot projects using fleet vehicles in the United States, various Western
European countries and Japan indicate that vehicle to grid technologies can serve as effective assets in various grid services, Navigant says.
The Defense Department projects that a vehicle to grid-enabled plug-in electric vehicle supplying power to the California Independent System Operator market for frequency regulation can make as much $150 per month.
Early results from eV2g, a demonstration project in the Pennsylvania New Jersey, Maryland Interconnection territory administered jointly between the University of Delaware and NRG Energy, have demonstrated revenue of around $5 per day per vehicle. A key aspect of the technology is that it can aggregate power from multiple electric vehicles to create one larger power resource, rather than individual, smaller ones.
Opportunities for the technology to add additional value to plug-in electric purchases can be a boon to both automakers and grid operators looking to manage a more efficient grid to reduce costs to end consumers, Navigant says.
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