According to a new report from EY and Eurelectric — Plugging into potential: unleashing the untapped flexibility of EVs, there will be more than 50 million electric vehicles (EVs) on Europe’s roads, representing 15% of the total vehicle stock, by 2030.
The report explored the role of unidirectional smart-charging, which allows EVs to draw power from the grid at optimal times, and vehicle-to-grid (V2G) technology, allowing EVs to both draw power and send electricity back to the grid, reduce total cost of ownership (TCO) for consumers, provide grid balancing solutions, and accelerate renewable energy adoption.
"By 2030, flexibility resources across Europe will need to more than double to keep pace with an increasingly intermittent power system,” said Serge Colle, EY Global Power & Utilities Leader. “By shifting EV charging to optimal times and enabling V2G, we can reduce energy costs for consumers substantially, alleviate grid stress, and support the integration of renewables into the energy system."
Harnessing EV flexibility will reduce vehicle TCO for consumers when compared with an internal combustion engine vehicle. EY calculated that by switching to an equivalent electric vehicle, annual savings of 4% in the compact segment, 9% in the family car segment and 14% for large/sports utility vehicles (SUVs) are expected to be realized on average across six key markets in Europe.
However, while savings vary market to market, the study found that when optimally charged and rewarded for selling energy back to the grid, vehicle TCO reduces significantly:
- A compact EV owner in the UK could save up to 19% ($1,341.16 annually). In Germany, Sweden and Spain, the TCO could be reduced by as much as 14%. In France and the Netherlands, savings of 7% and 9% respectively, may be realized.
- The family segment could reward drivers with 15% ($1,308.45) annual savings in France, rising to 23% ($1,962.68 annually) in Germany.
- In the SUV segment, drivers in the UK could realize savings of up to 26% annually, while their German counterparts could enjoy savings of 29% ($3,271.13).
Smart-charging and V2G are are essential for managing grid congestion and reducing network investment costs. The report finds that:
- By investing ahead to meet future demand, optimizing the grid and making use of flexibility from available assets, European grid operators could benefit from a projected $4.36 billion saving every year.
- By 2030, EVs are expected to contribute up to 4% of Europe’s annual power supply, equating to 114 TWh, enough to power 30 million homes.
- By 2040, if all EVs are capable of bidirectional charging, over 10% of Europe’s power needs can be stored and reinjected when required.
With Europe’s power mix shifting towards renewables, the ability to store and discharge energy when needed is becoming critical. The report highlights:
- Instances of negative electricity pricing increasing 160% year-on-year. These were registered in nearly every European electricity market, driven by growth in subsidized, price-insensitive generation capacity, such as nuclear and rooftop solar, combined with low demand.
- Demand for flexibility will double in Europe by 2030.
- EV flexibility can help avoid renewable energy curtailment and ensure power is available when demand increases.
Unidirectional and bidirectional charging are necessities. EVs have the potential to deliver among the most affordable, scalable and flexible solutions to localized energy needs, while driving down the price tag for network investment.
With Europe’s power demand forecast to exceed 4,500 TWh by 2050, smart-charging and V2G are required to be embedded into energy system planning, encouraging consumer participation in flexibility.
For consumers to play an active role in flexibility, the entire e-mobility ecosystem must help them consider EVs as something more than simply a means of getting from A to B,” said Kristian Ruby, Eurelectric Secretary General. “Easy-to-use smart-charging propositions, with clear cost benefits are critical to consumer engagement and adoption, but time is running out because flexibility resources must double within the next five years to match the speed and scale of electrification. “
