SAFE and the Electrification Coalition (EC) released a report highlighting policy opportunities to accelerate the adoption of vehicle-to-grid (V2G) technology. As electric vehicle (EV) adoption accelerates across all vehicle classes, V2G capability can help manage system load and provide power back to the grid during times of need, thereby strengthening the resiliency of the US electric grid. The transition to transportation electrification reduces dependency on oil and improves energy and national security.
The report, “Advancing Vehicle-to-Grid Technology Adoption,” calls on policy makers to “future-proof” electric vehicles and charging infrastructure to ensure that the US is poised to take advantage of V2G’s benefits, including enhanced critical infrastructure resilience and emergency preparedness.
V2G enables EVs to serve as “mobile energy storage units” and can provide power during outages. With bidirectional charging technology, EVs can help manage system loads during periods of high electricity demand. A single electric school bus, for example, has enough battery storage capacity to power a hospital operating room for almost two full days.
The technology can help accelerate the adoption of EVs by unlocking these and other new value streams for EV owners and mitigating the total cost of ownership. With the appropriate policies in place, EV owners could receive compensation for the grid services their vehicles provide. These benefits can apply to all vehicle sectors, from light-duty passenger vehicles to medium- and heavy-duty trucks and buses.
Several factors have limited the US’ ability to utilize this exciting technology and its associated value streams. Combined with inadequate incentives to deploy EVs and EV charging infrastructure, V2G adoption has been delayed by insufficient awareness, concerns over battery degradation and warranty issues, an absence of uniform national technical standards, and a lack of coordination among key stakeholders, among other factors.
The solutions identified in this report will help overcome existing challenges and barriers to deployment. But policymakers must act now. We cannot afford for V2G capabilities to be an afterthought during the electrification of our transportation system. It is time to advance beyond V2G pilot programs and begin full-scale adoption.
The report highlights key federal, regional, and state policy recommendations for deploying V2G technology at scale:
Extend and expand the “Alternative Fuel Refueling Property,”or EV charging infrastructure, also known as Section 30C, tax credit to cover V2G capabilities.
Incorporate V2G capabilities into emergency planning, preparedness, and response efforts for resilience purposes; and prioritize the deployment of bidirectional charging equipment at critical facilities.
Convene a cross-disciplinary group to advance V2G policy and regulatory developments and deployment.
Develop a national V2G Roadmap.
Help future-proof policies to incorporate V2G make-ready capabilities into infrastructure planning processes.
Modify and update the treatment of V2G-capable EVs as mobile energy storage units in policies and regulations in terms of their provision of grid resources using lessons learned from stationary storage and other Distributed Energy Resources.
Facilitate the development and implementation of uniform national V2G-related
Conduct research and testing to ascertain the potential impacts of bidirectional charging on battery degradation and warranties.
State and Local Governments
Incentivize V2G deployment at the state and local levels.
Streamline interconnection standards.
Design or apply appropriate rate structures to compensate onboard batteries and V2G.
Conduct demonstrations, share lessons learned and best practices, and scale V2G technology.
Regional Transmission Organizations (RTOs)
Develop or implement roadmaps that fully incorporate EV and Electric Vehicle Supply Equipment V2G capabilities.
Develop or revise RTO requirements to facilitate V2G deployment, including for grid services in wholesale markets.
Conduct V2G grid impact studies and disseminate results broadly.
Conduct inclusive, transparent, and cross-sectoral V2G stakeholder processes.
The policy recommendations contained in this report represent the latest step in SAFE and the Electrification Coalition’s ongoing V2G Initiative. They aim to accelerate the adoption of this crucial technology by building on recently enacted federal V2G policies.
SAFE is committed to strengthening US energy, economic, and national security by advancing transformative transportation and mobility technologies and ensuring that the United States secures key aspects of the technology supply chain to achieve and maintain its global strategic advantage.
The Electrification Coalition advances policies and actions to facilitate widespread adoption of plug-in electric vehicles in order to overcome the economic, public health, and national security challenges that stem from US oil dependence.