FROM THE
INDUSTRY
Why unlocking the full potential of V2G charging is crucial for fleet operators
As the UK accelerates its electric vehicle (EV) transition, the demand for electricity is set to rise significantly. This increasing demand is already putting pressure on the national grid, necessitating the exploration of flexibility options like vehicle-to-grid (V2G) charging to manage peak loads effectively.
Currently, flexible capacity is primarily provided by the likes of gas peaking plants, but as the EV transition intensifies, vehicle batteries will play a crucial role in providing this flexibility.
For fleet operators, electrification is often seen as a challenge due to the substantial investments required. However, V2G charging presents an opportunity to recoup significant costs. An EY study with Eurelectric indicates that large EV owners could save up to £1,475 annually through optimized charging solutions, including time of use (ToU) tariffs and V2G. Fleet operators can benefit financially by allowing their vehicles to discharge energy back into the grid during peak times, potentially earning around £1,000 per vehicle each year.
Concerns about battery degradation due to V2G usage have been addressed by pilot programs showing that V2G can actually enhance battery health. Discharging is akin to exercising the battery, helping to maintain its condition.
“Vehicle-to-grid charging presents an opportunity for fleet operators to recoup significant costs – potentially earning around £1,000 per vehicle each year while supporting a more flexible, efficient energy grid”
Maria Bengtsson
EY, UK&I mobility leader
Beyond profitability, V2G has the potential to positively impact society by enhancing grid efficiency and capacity, thus accelerating the UK's EV transition toward cleaner mobility. It can also alleviate broader grid challenges, enabling more efficient electricity use beyond transportation.
While V2G may not yet be on the radar for many fleet operators, it is an opportunity worth considering. EY teams have already successfully collaborated with clients on various fleet projects, emphasising the importance of early planning and seeking expert advice. Key considerations for fleet operators include determining when V2G can realistically generate revenue, assessing vehicle and charger readiness, and understanding the operational impacts and financial benefits specific to their fleets.
V2G charging is poised to be a significant enabler of electricity flexibility in the near future, representing a vital opportunity for fleet operators. If the UK automotive industry fails to unlock the potential of V2G, it risks missing out on a substantial opportunity for growth and sustainability.
Maria Bengtsson
EY, UK&I mobility leader
