Batteries on wheels – brilliant idea, but are we still dreaming?

FEATURE: New modelling shows government investment in vehicle to grid (V2G) technology would net consumers a 150 per cent return in cheaper electric bills – but complexities mean this won’t be happening overnight.

According to the modelling, from the Electric Vehicle Council (EVC), V2G technology, also known as bidirectional EV charging, allows energy, usually generated through the user’s solar panels, to be stored in the electric vehicle (EV) as if it is a “giant battery on wheels” and then be sold back to the energy grid during peak usage periods.

According to the EVC, an EV owner participating in V2G technology could earn around $1000 a year from selling power from their car to the grid during high demand periods.

However, a report earlier this year by the Australian Renewable Energy Agency (ARENA)’s Insights from the Realising Electric Vehicle-to-Grid Services Project report projects earning up to $12,000 through frequency control ancillary services (FCAS) markets, which helps stabilise the grid.

EVC said uptake could be dramatically improved if the government invested in this technology. Modelling showed that a $3000 government rebate towards a V2G charger could create more than $4500 in lower electricity bills.

It estimates the 600,000 EVs storing energy through V2G would match the output of NSW’s Eraring Power Station operating at full capacity when sold back to the grid.

It is calling on the federal government to allow V2G chargers to be covered through its $2.3 billion home battery program, which would “provide more value for money to the taxpayer,” and help shut down coal fired power stations sooner.

According to the organisation, allowing the $3000 home battery rebate to include 50,000 V2G chargers by the end of 2028 would cost $150 million but would create a national benefit of $230 million within five years.

EVC chief executive Julie Delvecchio said V2G had the potential to make electricity cheaper, stabilise the grid and make Australia a global leader.

V2G could improve the resilience of the energy grid and also help areas vulnerable to severe weather events and blackouts, she added. A charger costs around $10,000, which is “the same as the average home battery”, but an EV battery can store up to five times that of a home battery, Delvecchio said.

“That’s a huge untapped resource sitting in driveways, and with the right technology, we can use it to save money, support the grid and make the whole system more reliable for everyone.

“Australia is home to more than 350,000 EVs, and a high proportion live in the middle and outer suburbs. With some EVs now around $30,000, the upfront cost is making it more affordable for more Australians to make the switch to cheaper-to-run cars. V2G unlocks the full benefit of EV uptake in a way that helps everyone – EV owner or not.”

According to Delvecchio, the government’s help is needed to build early adoption, just like rooftop solar.

Over time, V2G chargers would likely become increasingly affordable and more ubiquitous.

“While V2G is an emerging technology in Australia, a small group of early adopters have exported power to help stabilise the grid.”

Delvecchio had stepped into her role in February from a background in media and communications, taking over from interim chief executive Samantha Johnson, former managing director of Polestar Australia.

But how far off is the technology?

An interview by the ABC last year found that the V2G had been a “regulatory and technical minefield” for years. For the longest time, the Clean Energy Council (CEC), which certifies chargers, has maintained a database of safe chargers and refuses to certify V2G chargers that don’t meet the national technical standards that it says are ambiguous.

This meant there were fewer than 20 EV owners experimenting with V2G at home since owners would need individual approval from electricity distributors and regulatory bodies for installation and use of V2G chargers in each state and territory.

Also, last year, Standards Australia updated its national technical standards relating to V2G chargers to remove this ambiguity, allowing owners to install V2G chargers without going through the onerous process, but electricity networks still need to approve the charger connection.

But approval from the CEC is slow, and leading V2G researcher Bjorn Sturmberg at the time said approval would still be months away.

Tim Washington, chief executive of JetCharge, an EV charging provider credited as one of the pioneers of V2G systems, told The Fifth Estate that while standard AS4777.2 has been amended to better suit V2G chargers, the CEC is still assessing charging brands going through its process.The process was said to have started back in November last year.

Another recent ABC report finds that having a V2G charger might not be the end of the problems, as now consumers need to tackle the compatibility of their car with the charger.

One consumer found that his Tesla was not designed to pull power out from the battery, and currently, the only Tesla with the hardware to do this is the Cybertruck. While he could use third-party equipment and alterations, this would void the warranty of a car worth more than $100,000.

Last year, it was frequently quoted by mainstream outlets that only three vehicle models in Australia are capable of vehicle to grid discharging – the Nissan Leaf and two Mitsubishi plug-in hybrid EVs. (However, we could not find reliable source material for this information.)

 Since then, there have been at least two more V2G compatible vehicles to join the market – the Kia EV9 and the Cupra Born.

Sturmberg, who is research lead for the battery storage and grid integration program at the Australian National University, said the three older EVs use the “CHAdeMO plug standard”, which is in the process of being phased out for CCS2, a more widely used standard.

Once approved by the CEC, the new V2G chargers will only be compatible with the new standard, meaning cars Leaf, Outlander and Eclipse Cross won’t be compatible with the next generation of V2G chargers. “A bit awkward” for owners of the 30,000 older units of the Nissan Leaf, he noted.

The technology also seems much more available overseas than in Australia, with this recent article noting that Australia’s lack of interest in smaller-sized cars might be one issue. Brands such as Hyundai, Polestar, Volkswagen, and even Tesla expressed interest or have already delivered V2G compatible cars overseas.

Not all bidirectional charging is equal

EV education platforms explain that when an EV is being charged, alternating current (AC) electricity from the grid is converted to direct current (DC) so the car battery can use it through a “convertor” in the car or charger. The ability for a car to send electricity backwards makes the car compatible with bidirectional charging.

But it’s crucial to note that a car that supports bidirectional charging may still not be compatible with sending electricity back to the grid.

Notable in a list of bidirectional charging cars by EV education platform Zecars is that while many cars had vehicle to load (V2L) technology, allowing the car to function as a portable battery pack, not many had V2G technology, which allows feedback to the grid. Some cars also have vehicle to house (V2H) compatibility, allowing the car to power the house, but that still doesn’t guarantee compatibility with the grid.

According to Tim Washington, “many cars (most manufacturers) are technically capable of discharging via bi-directional charging today, but there were two issues.

“[First is that] they have not settled on warranty coverage for vehicles that are discharged. There’s a large industry effort to get the OEMs [original equipment manufacturers] to do so, but it’s still a work in progress. This is why you haven’t seen any vehicle OEMs come out and say anything publicly.  I think there would be huge advantages for those who came out first.

“[Another is that] there is a more modern protocol that ensures proper homologation between the vehicle OEM and the EV charging OEM – it’s called ISO15118-20.  Almost no vehicles have this implemented globally yet.  Until then, the vehicles can still discharge with some workarounds, but we’re all working towards ISO15118-20.”

Not always more eco-friendly

Recently, Greenpeace East Asia revealed in a report that roughly a third of battery emissions come from the manufacturing process and are tied to how carbon-intensive local grids are. There are calls for battery suppliers from China, Poland and other countries still reliant on fossil fuels to step up efforts to switch to clean power at manufacturing sites and curb emissions in supply chains.

Greenpeace East Asia campaigner Erin Choi told Business Times Singapore, “The lack of commitments calls into question whether leading battery makers are serious about decarbonisation.” The organisation is calling for suppliers such as BYD and EVE Energy to set 100 per cent renewable energy targets and implement further decarbonisation strategies.

Contemporary Amperex Technology Co Limited (CATL), the world’s top battery producer, which supplies customers including Tesla, Volkswagen and Ford Motor, have put in place stronger climate policies and offered incentives to suppliers that cut emissions.

The International Energy Agency estimates that global energy storage capacity needs to increase sixfold to meet 2030 climate targets.

Cover photo:  Wallbox Quasar 1 is the only V2G charger that made it through certification – but it’s no longer in production and only works with CHAdeMO. Image: JetCharge