Vehicle-to-grid potential
Owners of electric cars and trucks can earn money by injecting power back from their batteries thanks to new technology.
About $2,000 per car per year is the estimated value EVs could deliver to New Zealand’s electricity system by sending power from their batteries back to a house, building or the grid during electricity demand peaks.
“The value to the electricity system from vehicle to grid [V2G] from electric trucks could be even higher at $10,000 per truck per year for trucks returning to depots in the early evening,” says Simon Coates, pictured, director of Concept Consulting.
For an e-truck collecting milk, which could be off the road during the middle of winter when milk production is low, the value may be much greater per truck per year as V2G supports electricity demand peaks and recharging when there is cheap power overnight.
For owners of V2G-capable EVs to benefit from their sizeable share of this value, the electricity sector needs to offer a new “type of use” discounted electricity pricing for EV charging with suitable remote charging management, according to a report published by Concept Consulting and Retyna Ltd.
Electricity retailers partnering with EV importers to create bundled offers of an EV, charger and power deal will help make V2G easy for consumers.
“V2G is only possible with the right EV and the right charger,” says Liz Yeaman, managing director of Retyna Ltd.
“V2G-capable cars, trucks and buses are starting to become available. Motorists and fleet owners considering buying new electric cars, buses or trucks should ask dealers if they are capable of V2G charging, if the EV battery warranty covers this and what type of V2G-capable chargers they should use at homes or in depots.”
Consistency across the electricity sector for the right arrangements to facilitate V2G is also needed, particularly across local networks, concludes the report called Powerful Potential – New Zealand’s vehicle-to-grid opportunity.
And an inconsistent approach across the country risks significantly reducing the benefits of V2G for the country.
The multi-client study by Concept Consulting and Retyna was funded by the AA Research Foundation, Aurora Energy, Ecotricity, EECA, Fonterra, Horizon Networks, Meridian Energy MinterEllisonRuddWatts, Orion, Powerco, StarCharge, Transpower, Unison Networks and WEL Networks.
Detailed analysis using Concept’s proprietary models identifies that the potential value of V2G is large.
The report analyses different elements of getting V2G right to unlock this value – the consumer offering, technical requirements and commercial arrangements. It offers recommendations, particularly highlighting the need for:
• Consistency in arrangements across different electricity distribution businesses and, for chargers, trans-Tasman.
• Development of type-of-use tariff arrangements to reward V2G. These are similar to, but more sophisticated than, controlled hot-water tariffs. Click here to access the report.
Concept Consulting has been providing expert advice on policy, regulation, strategy and economics for 25 years. The energy-sector specialist has growing expertise in carbon, telecommunications, water, transport and general resource economics. It also produces electricity price-forecast reports each quarter, gas market analysis and price forecasts annually, and carbon-market analysis and forecasts on demand.
Retyna, meanwhile, is a specialist, independent consultancy focusing on electric vehicles and renewable energy for transport.
