Energy on wheels: EV batteries could save EU over $106 billion by 2040

Bidirectional chargers cost only 100 euros more than a conventional EV charger and pays for itself in a few months.

Ameya Paleja

EV batteries can serve as an energy storage solution for renewables and feed it back to the grid during high demand.

iStock

Storing renewable energy in electric vehicle batteries (EVs) instead of stationary energy storage facilities could help the European Union save over 106.5 billion dollars (100 billion euros) over ten years, according to a European Federation for Transport and Environment (T&E) study. If the intricacies are worked out, EVs could become the fourth-largest electricity supplier in the EU by 2040.

To meet their net-zero goals, countries in the EU are busy scaling up renewable energy infrastructure using solar panels and wind energy systems. However, the intermittent nature of these power sources necessitates using energy storage solutions that are expensive to build and maintain.

EVs, a critical component of the clean energy transition, can serve as a decentralized energy storage system by storing excess energy in their batteries and feeding it back to the grid when demand is high.

Enabling such functionality in EVs could help the EU save hundreds of billions of euros while also helping EV owners, a study has now found.

With the rise in EV adoption worldwide, bidirectional charging—where the EV supplies energy either to households (Vehicle to Home, V2H) or to the grid (Vehicle to Grid, V2G)—is now reaching a critical point.

A large fleet of EVs in a country or region like the EU can store excess energy generated in renewable facilities daily and feed it back to the grid when demand increases. The study by T&E said this approach could help the EU save 23.4 billion dollars (22 billion euros) a year by 2040.

The study further estimates that this can help achieve an eight percent reduction in the costs of running the energy infrastructure in the EU and help save 106.5 billion dollars (100 billion euros) between 2030 and 2040.

With the V2G system, the EU could also improve its solar energy capacity by another 40 percent. Storing the excess generated energy in batteries, EVs could help meet nine percent of the EU’s energy demand by 2040, making it the fourth largest electricity supplier without investing in storage capacity.

Using bidirectional chargers could help EV owners reduce their annual electricity bills by 52 percent. These savings are subject to location, the vehicle’s battery size, and whether the EV owner’s house has solar panels.

When these conditions are met, an EV owner could save up to 780 euros per year in charging costs while also improving the lifespan of their battery packs. Contrary to commonly observed concerns about constant charging and discharging, this approach would help the battery pack retain an optimal state of charge and improve its lifetime by as much as nine percent.

Since bidirectional chargers only cost 106.5 dollars (100 euros) more than regular EV chargers, the EU can reap the benefits of this approach for free. The cost of the charger will be offset within a few months. However, EV makers must ensure their chargers are interoperable and support V2G technology.

“V2G can only take off if we ensure all EVs can work with all chargers,” said Fabian Sperka, vehicles policy manager at T&E, in a press release. “Lawmakers can unlock the potential of this technology by deciding the EU standards for bidirectional charging. That will be a win for consumers, the environment and progress towards the EU’s climate and energy goals.”

Stay up-to-date on engineering, tech, space, and science news with The Blueprint.

By clicking sign up, you confirm that you accept this site's Terms of Use and Privacy Policy

Ameya Paleja Ameya is a science writer based in Hyderabad, India. A Molecular Biologist at heart, he traded the micropipette to write about science during the pandemic and does not want to go back. He likes to write about genetics, microbes, technology, and public policy.

a day ago

Ameya Paleja