V2G Britain is a one-year feasibility study that is part of the Vehicle-to-Grid competition, funded by the Office for Low Emission Vehicles (OLEV) and the Department for Business Energy and Industrial Strategy (BEIS), in partnership with Innovate UK.

Funders:

The Challenge:

Drawing on the diverse expertise of the consortium members Nissan, Energy Systems Catpult, Cenex, Moixa, Western Power Distribution, NationalGrid and Element Energy. The project explores both near term niches and enduring large-scale opportunities for V2G to play a role in a flexible energy system in Britain.

Primary Project Objectives:

  • Assessing the long-term market opportunity: To assess the long-term risk of revenue streams by establishing the underlying drivers for market needs. This fills a gap in stakeholder confidence in the long-term viability of V2G.
  • Identify early opportunities: To understand the potential customers of V2G and identify the most promising archetypes. Evaluate possible V2G revenue streams in the near term and identify which ones offer highest revenue over the short term.
  • Getting started: To identify and analyse business models and value chains to understand how V2G should be structured to be commercially viable.
  • Support scale up: Explore pathways for scaling up a V2G business to play a full role in a flexible and efficient energy system. The project determines what performance thresholds are required to maintain and grow the market as it transitions from early adopters towards representative EV clients.

The Development:

  • There was added economic value that could be accessed by V2G compared to smart chargers, but that plug in rates and location (for Distribution Systems Operator – DSO services) would be key drivers for value.
  • The on-cost for providing bi-directional charging is dominated by hardware costs, however these could reduce o below £1k by 2030. There is a revenue risk due to saturation of flexibility markets, however emerging DSO congestion avoidance services may replace some of this revenue.
  • The effects of degradation on the battery due to V2G operation needs to be understood more fully. There will be an enduring value of smart charging and V2G to the electricity supply chain. By reducing peak demand on the distribution grid V2G could help save £200m of distribution network investment up to 2030.

The Result:

Key messages (drawn from the executive summary of the public report):

  • Residential V2G charging could economically viable in the near term, but to do so will require a combination of high plug-in rates, reduction of the installation costs of high accuracy metering equipment for Firm Frequency Response, stacking of multiple revenue streams, and an agile model to move between revenue streams in a dynamic market environment.
  • To achieve wider uptake and contribute to energy system decarbonisation, V2G hardware cost must reduce significantly, develop viable commercial models to depreciate the assets over 10 years, and remove consumer concerns about range and battery impacts.

Key results in numbers:

  • A 7kW residential V2G charger could capture over £400/year in revenues, but only in ideal circumstances – a typical figure would be ca. £100/year.
  • Cost premium for 7kW V2G needs to drop below £1000 by 2030 for continued viability.
  • V2G could help to save £200m of cumulative distribution network investment by 2030.
  • Smart Charging could generate GB energy system net savings of £180m/annum, and V2G could save additional £40-90M annually in GB by 2030.

Further project information:

Please see the following links to our partners public reports for the project:

Element Energy’s webpage about the project can be found here.

Energy System Catapult’s webpage about the project can be found here.

Cenex’ WP 2 report can be found here.