The purpose of this study is to return to the drawing board to reconsider the value, either financial or nonfinancial, that vehicle-to-grid (V2G) can deliver to its stakeholders, taking into account the recent industry changes and the experiences of other V2G projects. The aim is to identify and provide a simple evaluation of alternative value propositions in order to support the ongoing development of the V2G industry in the UK.

Innovate UK and our partners have invested in a £30 million programme which is to date the biggest suite of V2G projects in the world, ranging from feasibility studies looking at business model innovation, to R&D for V2G hardware and software technologies, and including eight flagship real-world demonstrator projects – deploying V2G technologies in actual commercial propositions to customers.

As part of our ongoing support to vehicle-to-grid technologies, Innovate UK has been commissioning studies that look at opportunities, market prospects, and challenges for V2G commercialisation and deployment. This report takes a fresh look at the value propositions offered by vehicle-to-grid now and in the future, examining the overarching benefits and advantages of V2G beyond the traditional revenue-generation routes associated with the technology. Recognising the evolving landscape for vehicle-to-grid, this report will help the eco system in the UK and internationally take stock of the current outlook, the opportunities and the challenges.

What is V2G?

Vehicle-to-grid (V2G) is a system whereby plugin electric vehicles (EVs), when connected to a V2G charger, can provide bi-directional flows of energy and data. This technology enables EV batteries to be used as grid-connected energy storage. They can charge or discharge electrical energy in response to control signals from stakeholders in the V2G system, typically: the end user, owner, energy supplier, service provider/ aggregator, local Distribution Network Operator (DNO), or Transmission System Operator (TSO). By controlling the power and timing of charging and discharging of the vehicle battery, value can be extracted by one or more of the system’s stakeholders.