Electric vehicles had existed for a long time, even back when horses were the primary mode of transportation between 1828 and 1835. Hungary, the Netherlands, and the US had people who thought ahead and developed small-sized EVs. The first crude electric vehicle was built in 1832 by Robert Anderson, but a successful one was not made until the 1880s when William Morison built one.
An electric vehicle (EV) needs to be charged and recharged just like your smartphone. To achieve this, charging stations, also known as Electric Vehicle Supply Equipment (EVSE), supply power for plug-in EVs. They are as old as electric vehicles and have improved over the years. EV charging can be done with AC or DC supply.
Comparison Between AC And DC Charging Stations
Despite being the more popularly used, AC charging stations have their peculiarities, while DC charging stations have new introductions and drawbacks. I have compared these two kinds of charging stations based on the following subject:
Nature of direction of AC and DC Charging
Alternating currents (AC) are generally popular for changing direction within short periods, and the grids produce AC typically. It is easy to transmit AC from one place to another, so it is usually supplied to the EV chargers (charging stations). However, the batteries in electric vehicles can only store electric power in direct current (DC).
How then do you charge a DC battery in your car with the AC power supplied by the grid?
To charge these vehicles, supporting infrastructure like AC and DC charging infrastructure have been put in place to provide electric power. The AC charging stations supply power as AC, but the onboard charger inside the electric car converts the AC to DC to be accepted by the batteries.
The difference between an AC charging station and a DC charging station is how power finds its way to the batteries. For the AC charging station, the onboard charging circuitry is directly connected to the AC supply. Then, it makes use of a converter that converts AC to DC before transmitting it to the car’s battery.
Meanwhile, DC charging stations give direct current to the electric vehicles, without converting in the onboard charger; instead, the AC to DC conversion is done in the station before transmitting through the EVSE.
Charging Speeds and Voltages of Electric Vehicle Charging Infrastructure
Electric vehicle charging infrastructure has various levels based on speed and capacity. The current classification of charging speeds is that of levels 1, 2, and 3.
Levels 1 and 2 are for AC charging, while level 3 is known as DC fast charging. For level 1 AC charging, it would take an overnight charge to add 50-60 miles, by an output of 1.3kW to 2.5kW to a 120V household outlet. Meanwhile, level 2 charging involves improving to about 208V-240V, charging at the rate of 4kW to 18kW (equivalent to 12 to 54 miles per hour).
With the use of DC charging, which bypasses the use of a converter, charging is faster. This speed is expected since the time taken for converting AC to DC is part of what contributes to the slow charging experienced at AC charging stations. DC fast chargers can charge at an output rate of 50kW to 350kW. A vehicle, depending on the type, can be fully charged within 15 – 45 minutes.
More about DC fast charging operation
Each DC charging station has a unique port connector. This uniqueness limits the type of vehicles that you can charge in a DC charging station. So, for example, a Tesla supercharger cannot charge vehicles other than Teslas. The other two kinds of DC chargers available include Combined Charging System (CCS) and CHAdeMo, and they are relatively common and can be adapted to different electric vehicles.
More so, various electric vehicles have different battery capacities and power acceptance rates. The amount of power that a battery can accept at a time determines its rating. At least I can tell of newer EV models that can accept up to 270kW hourly, though the common models have been known to accept power at a rate of 50kW per hour.
As EV batteries‘ ratings continue to increase, the rating of charging stations keeps growing as well. As of 2020, the highest EV charging station I have heard of is 350kW.
So how can these two (the capacity of the chargers and that of the batteries) match when chargers are going faster?
The good thing is that it does not even have to match. All that needs to happen is a communication between the vehicle and the charging station on how much power is required and it would be dispatched.
Pros and Cons of the Electric Vehicle Charging Infrastructure Available
AC charging is still very popular, especially level 2 charging. So, you cannot always expect to drive into a DC charging area, even if you wanted to, because the closest one may be far away. While AC charging is still safe and great, it is slow compared to DC charging and requires more hours of charging.
Interestingly, the use of DC fast charging has some disadvantages too. The case of thermal issues is one of them that brings concern. Prolonged charging with DC fast charging heats up the EV batteries, and this slightly degrades the batteries over time. While the long-term effects are still a debate, it calls for more heat control technologies.
Furthermore, It is expensive to install, and this is a significant downside. For DC charging stations, a higher voltage is needed. They need the 480-volt level to operate most of the time, and the cost for this voltage requirement is relatively higher compared to the AC counterpart. So, on the side of the installation companies and the EV users, there would be cost implications.
|AC Charging||DC Charging|
|1||Conversion to DC is done inside the car.||Conversion is done outside the car in the charging station.|
|2||The charging curve is a flat line; that is, it just charges at a continuous rate throughout.||The charging curve is a degrading curve as the rate of charging reduces with time. This implies that the initial fast rate at which the EV battery accepts power reduces as it approaches total capacity.|
|3||The charging speed is usually around 22kW-43kW per hour.||Can charge up to 50-100kW per hour.|
|4||AC stations are popular and more.||The latest DC charging stations exist in Europe but are not as popular as AC charging stations.|
|5||Uses a limited onboard charging converter.||Uses a larger converter outside the EV for fast and bidirectional charging.|
Generally, AC and DC charging infrastructure are developing fast to facilitate the better use of electric vehicles. Yet, DC charging still stands out because of its speed. It also has its levels of capacities in terms of current, voltage, and power. Therefore, while we can use what we have, it is better to explore better options like DC charging and improve efficiency.
This blog is part of a V2X series. Continue to the other blogs in the series.
Despite the many advantages, one of the major doubts about the deployment of V2G technology is that its operation could increase the rate of degradation of the EV’s battery life.
Users believe that as more charging and discharging occurs, the EV battery degradation might be more rapid than when compared with normal use.
Even though the cost of production of batteries is continuously decreasing, it still contributes up to 40% of the total cost of an electric vehicle(BEV).
As a user, your immediate preference will be to elongate the battery life of your EV to reduce the cost of battery replacement. Also, manufacturers of EVs are reluctant to warrant their products for V2G service because of the fear of battery degradation.
Many pieces of research have been done to prove that V2G degrades the battery or otherwise. Therefore, I am writing from the point of view of a V2G technology solution provider and will answer the question to give EV users confidence to participate in V2G activities.
Understanding V2G Services And Its Advantages
Vehicle-to-Grid is a bi-directional interaction between an electric vehicle and an energy distribution grid. This interaction is possible through a connecting system that allows the bi-directional flow of energy and information.
One of the common communication interfaces is called the ISO/IEC 15118 – “an international standard defining a vehicle to grid (V2G) communication interface for bi-directional charging/discharging of electric vehicles.” Another protocol for DC charging and discharging is the CHAdeMO.
With the aid of these V2G communication protocols, an electric vehicle can send its stored energy to the grid and vice versa when the vehicle’s battery pack needs to be charged.
EVs participating in V2G services help boost the efficiency of grids and enhance the reliability and stability of the grid through services such as load balancing, peak shaving, the regulation of frequency, and the provision of support for the incorporation of renewable energy.
Research has shown that drivers park their cars up to 95% of the day. So, instead of energy stakeholders constructing battery banks for these services, EVs have impressive batteries with substantial capacities that we can harness.
But at what cost?
How EV Batteries Life Reduces.
When you consider price and reliability, it is safe to say the battery is one of the most important components of an EV. Therefore, the packaging design and the electrode materials have been thoroughly researched to further enhance battery life longevity and general performance.
During normal use, it has been proven that the quality and efficiency of batteries reduce with time depending on the type of battery in question.
The types of batteries suitable for electric vehicle technology include lead-acid and nickel-metal hydride batteries and lithium-ion batteries, which show substantial advantages in energy density, power density, eco-friendliness, and charging properties.
However, the most preferred for electric vehicle manufacturers is the lithium-ion battery, which has a high energy density strength of over 220Wh/kg. Hence researchers tend to use this battery to establish whether or not V2G services shorten/degrade battery life.
Deductions from research held at Aston University School of Engineering and many other papers show that Lithium plating, solid electrolyte interphase (SEI) growth and chemical decomposition are microscopic phenomena of battery degradation.
Among these factors above, SEI formation is accepted generally as the main process which causes battery degradation. The SEI is generated on the surface of the anode as a result of the electrochemical reduction of the electrolyte, and it is essential for the long-term cyclability of a lithium-ion battery. The SEI is a passivation layer that forms when a liquid electrolyte comes into contact with a negative electrode’s electron-conductive surface (NE). Thus, it has the properties of a solid electrolyte.
These electrochemical reactions indicate a reduction of the battery capacity or available power output and the all-around performance and efficiency of the batteries.
Calendar Ageing and Cycle Ageing in Electric Vehicle Battery.
There are two major perspectives used to measure battery degradation;
- the calendar ageing
- the cycle ageing mechanisms.
Calendar ageing in EV Batteries
Calendar ageing refers to any ageing processes that cause a battery cell to degrade without being subjected to a charge-discharge cycle. It’s a vital element in many lithium-ion battery applications because the working times are much shorter than the idle intervals, like electric vehicles.
Furthermore, degradation due to calendar ageing can be prominent in cycle ageing analyses, especially when cycle depths and current rates are low. The formation of passivation layers at the electrode-electrolyte interfaces is the most common pattern of calendar ageing. It occurs when a battery is at rest – this is when no current is flowing through the battery.
Cycle ageing in EV batteries
When a battery is charged or discharged, it undergoes cyclic ageing. Mechanical strain in the active electrode materials or lithium plating might cause substantial deterioration during cycle ageing. The mechanical stress and strain caused by the insertion and extraction of lithium ions primarily cause structural disordering.
Lithium plating on the negative (graphite) electrode is the most representative cycle ageing mechanism. When the battery is charged at high current rates or at low temperatures, a diffusion limitation of lithium insertion occurs. Instead of being inserted into graphite, lithium might be deposed on the negative electrode in this situation.
Particle cracking and collector corrosion are two further cycling ageing mechanisms in lithium-ion batteries. On the other hand, this type of mechanism is more common in extreme use situations, such as very high current rates or very deep discharges, rather than in normal use conditions.
Are there any relationships between the two battery degradation mechanisms?
In addition, given that battery degradation differs depending on whether the battery is at rest or if a current runs through it, figuring out how the calendar and cycling ageing effects interact is a difficulty. When electric cars are operated, they spend most of their time (95 per cent or more) parked, and their battery’s current rates are relatively low.
Will V2G Degrade your Battery?
According to a study from the University of Warwick, utilizing a battery in a V2G scenario does not necessarily harm its performance — it may even increase it. The researchers devised a V2G technique to minimize degradation after running simulations using a “comprehensive battery degradation model.”
They also discovered that, in certain circumstances, transferring energy to the grid could extend battery life. “Extensive modeling results show that if a daily drive cycle consumes between 21% and 38% state of charge, then discharging 40%–80% of the batteries state of charge to the grid can minimize capacity fade by roughly 6% and power fade by 3% over a three-month period,” the researchers stated.
A case study of the electricity demand for a representative University office building was investigated using smart-grid optimization. According to the findings, the smart-grid formulation can reduce EV battery pack capacity fade by up to 9.1% and power fade by 12.1%.
It was previously considered that using V2G technology caused lithium-ion batteries to degrade more quickly. But, on the other hand, battery degradation is more complicated – and this complexity can be used to extend the life of a battery.
This blog is part of a V2X series. Continue to the other blogs in the series.
V1G, V2G, and V2B/V2H/V2X are all elements of smart charging, though some are a bit more advanced. Smart charging is so because it allows for monitoring and optimizing the charging process via cloud-based technology. A data connection is necessary to intelligently adjust the amount of energy used by the vehicle based on the state of the grid while charging.
While V1G is more of the smart charging of a vehicle in one direction, vehicle-to-everything (V2X) requires several things to work. These include a bidirectional charger, a communication protocol for interactions between the charger and the vehicle, a vehicle with all enablements for V2G, and a good control system.
These requirements are because it involves making use of the electric power in electric vehicles (EVs) for various applications.
Seeing that electric vehicles are projected to grow by 50% in 2030 and 80% in 2050, it is pertinent that we use them efficiently, particularly for the sake of the grids. Smart charging and its elements, such as V1G, fit into the solution that is needed for the efficient use of electric vehicles as seen in the next highlights.
V1G (Unidirectional Smart Charging)
V1G is smart charging in its simplest form, that is, in one direction. Being “smart” implies that it allows EVs to modify charging rates and time dynamically since it links the EV to the station using a data connection. The advantage this presents is the minimized cost of charging. Also, V1G allows the vehicle to communicate what is needed to the charging station using machine learning technologies.
Some other advantages of V1G include safer charging, monitoring of electricity consumption, optimized charging time, and easy locating of charging stations. In addition, it could help you decide to charge when power is cheaper and cleaner, given the information available from the electricity market and system.
With V1G, an EV driver can easily access electricity usage details since sensors measure it and provide up-to-date values to help EV users make better decisions. These highlights far outweigh the disadvantages, if any.
V2B/V2H (Vehicle-to-Building, Vehicle-to-Home)
Vehicle-to-building (V2B) and vehicle-to-home (V2H) are similar in their operations. However, with the developments in renewable energy, the fluctuating production allows for some excess power and sometimes, need for power. To augment this, electric vehicles can be used to receive and give power to homes and buildings.
Beyond the cases of producing renewable energy, the electric vehicle can just be used to supply energy in any case of power outage or blackout. I know this use of electric vehicles may not directly affect the grid, but it creates a locally balanced environment. That is a massive step in the right direction for balancing the grid, after all.
V2B and V2H have not been implemented in many places all over the world, but Tepco, a utility in Japan, is known to have implemented bidirectional charging. Tepco says that 10 Nissan Leafs have enough energy to power 1,000 homes for an hour. That’s a lot of power that can be accessed on wheels.
Vehicle-to-everything technologies initially focused on communication with other objects, such as other vehicles, infrastructure, people and other parts of the traffic system. It achieves this by transferring information from a vehicle to the moving parts of the traffic system. This information moves via a high bandwidth from a vehicle’s sensors and other sources to communicate with other cars and structures.
In 2016, Toyota first introduced automobiles equipped with V2X with a focus on V2I (vehicle-to-infrastructure) and V2Vs (Vehicle-to-vehicles). More vehicles with V2X started being launched in 2017, especially in Japan. Most of them are equipped with DRSC (Dedicated Short Range Communication) V2X.
The motivation behind V2X includes better road management, safer driving, energy savings and traffic efficiency. However, we can now use V2X technologies for other various applications, including bidirectional charging. V2H and V2B also leverage this technology to communicate with the receiving end of power.
V2G (Vehicle-to-Grid, Bi-Directional Smart Charging)
Vehicle-to-grid, according to its name, involves a giving of power back to the grids by electric vehicles. This is achieved when the vehicle is capable of bidirectional charging. Also, the V2G communication protocols that support it have to be in place, between the vehicle and the charging station and between the charging station and the control systems.
Vehicle-to-grid is advantageous to the grids to balance it, especially when renewable energy sources have been integrated. Also, it is cost-effective as users can sell excess power from their cars, at a standard price, to power the grids. V2G can also involve throttling the charging rates of the plug-in electric vehicle. These advantages are attractive enough to work with.
V1G, V2H, V2B, V2G, and V2X Relationships
Of these technologies, V1G may seem like the odd one because it is unidirectional, yet it forms the basis for the rest. V2X can only work using smart charging, and it encompasses all bidirectional charging technologies. However, V2G stands out as it is a direct transfer of power from vehicles to grids and not to utilities.
V2H, V2B, and V2X are interrelated as they are practically the same thing in different applications. For V2B, though, the amount of power used differs from that of V2H. The time of use as well is different for homes and businesses/buildings generally.
|Smart charging||Direction of charge available||Stakeholders||Application|
|V1G||Yes||Unidirectional||Single users||To charge EVs under monitored frameworks to optimize time and resources|
|V2B||Yes||Bidirectional||Aggregators, Users, Buildings||To augment the power supply of a building using power in the battery of an EV by means of their connection|
|V2H||Yes||Bidirectional||Single users||To supply a home with power from an EV battery|
|To connect an electric vehicle to everything using sensors that can transfer data|
|V2G||Yes||Bidirectional||All||To give power back to the grids for the sake of stability|
The Future of V1G, V2H, V2B, V2G, and V2X
The leverage of V2X is in how accessible and available it is at precise times. It presents a form of energy storage that favours both the EV market and the grids. It is easy to install in homes and offices for charging.
V2G technology, for example, has been predicted to increase at a fast pace, looking at the market. By 2027, the V2G technology market is projected to reach $17.27 billion, given the high rate of growth of EV charging stations worldwide. The flexibility provided by V2G is also likely to contribute to this growth.
Smart charging in itself is the future of electric vehicle charging. IDC analysts anticipate that cities and governments will be spending $196 billion (£148 billion) on smart development by 2023. When this happens, there would be more smart cities, which would hopefully lead to more implementations of smart charging.
V1G, V2H, V2B, V2G, and V2X may seem like they only entirely exist in the future far away, but it is nearer than you can expect. While it is being implemented in some places already, it would gradually spread all over the world. With the increasing rate of EVs and charging stations and the rising need to implement more environment-friendly solutions, there is no limit to where V2X can impact.
This blog is part of a V2X series. Continue to the other blogs in the series.
The future has always been some proverbial time or place that we look forward to, but the truth is the future is ever-present. It is what we make of it daily, essentially summing up our lives. We have moved from using sticks and stones to the era of the industrial revolution to the technological advancements of the 21st century, paving the way for improvements in electric vehicles technologies. Being ready for the future is not a question of when but a question of, for what?
Understanding The Basics Of EVs
EVs (Electric Vehicles) can also be called plug-in vehicles. They come in several makes, models and different capabilities that hope to accommodate different drivers’ needs. The major distinguishing feature of an EV compared to other vehicles is that it can be plugged to charge from an off-board electric power source.
There are two basic types of EVs with distinguishing specifications; they are:
- All-electric vehicles (AEVs) are powered by one or more electric engines with a range of 80 – 100 miles in regular models and up to 250 miles in some luxury models. They don’t produce fossil fuel emissions because they do not use petroleum-based fuels. They charge from the electric grid and store the energy in batteries within the vehicle.
- Plug-in Hybrid Electric Vehicles (PHEVs) use both an electric motor and combustion engine. They can be charged from an electric grid. They also store their electric energy in available batteries while retaining the ability to switch to a fuel-based combustion engine when needed, especially for long-distance journeys. Some PHEVs are also called extended-range electric vehicles (EREVs).
Both types of vehicles recharge from the electric grid and use a form of charging called regenerative braking. This type of charging is gotten from the energy that is mostly lost while braking. Under the AEVs umbrella, there are the Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs).
Five Global Projections On Electric Vehicles.
Global projections on Electric Vehicles have varied from country to country, sector to sector and manufacturer to manufacturer, but a few similarities dominate the top spots. GlobalData’s latest analysis estimates EVs will account for 11.7% of light vehicle production by 2030 – up by 1.9% compared to 2019’s 10-year forecast.
Most global populations have felt the effects of greenhouse gases, so any innovation that seems to move us in a direction opposing our planet’s gradual decay is welcome. EVs are one of those innovations that have piqued our interest as well as making an impact on the global economic markets. With that said, let us go over the five most remarkable global projections for EVs to date.
1. Increase in the production of Electric Vehicles
Despite EVs playing a minor role in the car manufacturing sector for years. Analysts in 2020 projected that EVs should hit 6.7% of production by 2024 before hitting 7.8% in 2021 as opposed to their 2019 estimates of a 4.4% production rate within four years, rising to 4.9% by 2024.
This change in projections results from growing interest and wide coverage of EVs globally. More and more people are aware of EV production, the shift in needs and the desire to participate in this movement. Simultaneously, manufacturing companies are making huge efforts to put their new electrified or hybrid models on display, betting heavily on EVs’ arrival into the mainstream.
2. EVs will lead the CASE megatrends before any other trend within the automotive industry
According to analysts, the CASE megatrends – connected cars, autonomous vehicles, shared mobility services and electrification – are the leaders of the automotive industry. Compared to the rest, EVs maintain the trend with the highest potential, leading with actual figures and returns on investment. The rest still seem like science fiction.
3. Electrification of heavy-duty trucks, air and sea transport:
Charging solutions, including heavy-duty batteries with the ability to cater to the aviation, shipping and trucking industries, are the way forward for global electrification. The sale of heavy-duty trucks worldwide hit about 6000 units in 2019, with more room for expansion. The development and standardisation of high power chargers are taking off, providing expansion of these vehicles’ range of operations.
Legislation in countries like Europe, China, and the USA mandates the electrification of shipping operations at ports, gradually making it a commonality. Electric taxiing – the electrification of ground operations in aviation – offers the potential to reduce CO2 emissions and the cost of operations for airlines.
4. EVs will increase electricity demand, reducing reliance on oil
This will effectively reduce greenhouse gas emissions. Almost 0.6 million barrels of oil products per day were avoided in 2019, thanks to Electric Vehicles. According to the Global EV Outlook 2020, “in 2019, the electricity generation to supply the global electric vehicle fleet emitted 51 Mt CO2-eq, about half the amount that would have been emitted from an equivalent fleet of internal combustion engine vehicles, corresponding to 53 Mt CO2- eq of avoided emissions.” With this, it is easy to see how EVs can turn the climate change debate around, with help from other sectors, of course.
5. Expansion of EV charging systems
For now, most charging is done at home for the elite EV owners, but analysts project that an impressive expansion is on the horizon. In 2019 people privately owned about 6.5 million chargers; light-duty vehicle slow chargers in homes, apartment buildings and workplaces created convenience for those that chose to own EVs. The number of publicly accessible chargers globally increased by 60%, a rate higher than EV stock growth. With the expansion of this market, it is only obvious that ownership of EVs will also increase.
The future, as they say, is now, and it seems EVs have a stranglehold on it. Projections remain optimistic about the growth of the Electric Vehicle industry, and so do we at Hive Power, with the best technological systems ready to help you grab your future by their steady horns.
You may have heard of the Vehicle-to-Grid(V2G) business model for electric cars, but no one has convinced you of how viable and profitable it could be if done on a larger scale. Then stay-on to this blog-post, as we have the experts’ answers for you.
This article explores the practical business model for V2G. Primarily for a fleet manager, and how much benefits you can harness from such a model. We are aware that there are still many people sceptical about the success and profitability of the V2G business model; a careful read of this will resolve your doubts.
An Overview of What V2G Technology Involves
Vehicle-to-Grid is a bi-directional interaction between an electric vehicle and an energy distribution grid. With V2G, an electric car can send its stored energy to the network and vice versa when the vehicle’s battery pack needs to be charged.
For V2G to be possible, a connecting system that allows the bi-directional flow of energy and information must be present. One of the communication interfaces is called the ISO/IEC 15118 – “an international standard defining a vehicle to grid (V2G) communication interface for bi-directional charging/discharging of electric vehicles.” CharIN, a Berlin-based company, recently began the implementation of the ISO 15118 communication interface – also called Plug and Charge.
Another protocol that’s already in use is the CHAdeMO – a DC charging protocol for EVs; CHAdeMO Association, a Japanese-based company, develop it. Car manufacturers like Toyota, Mitsubishi, Nissan, Tesla, Kia, Mazda, Subaru, BD and Peugeot already have the CHAdeMO interface in place in some of their EVs.
It’s sufficient to say that a couple of EVs are ready for the V2G technology application; however, what are the benefits and who are the stakeholders?
A Business Case For V2G
As energy produced from renewable sources is increasing, there’s been a challenge of effectively distributing the energy we produce because renewable energy sources (RES) have their peculiarities. For instance, wind turbines and photovoltaic cells produce electricity when the wind blows, and the sun shines. Since these are not predictable, we must manage the energy produced effectively.
“Effectively” means that when the produced energy from a RES is not needed, the energy is stored; and when it’s needed, you supply it back into the grid. You can easily proffer a solution for building battery bank centres, but there are consequences of capital and profitability.
Instead of constructing battery banks, there are impressive batteries with substantial capacities already present in electric vehicles that we can harness. And fortunately, EVs now have a wider spread across the world, and we’ve predicted the spread to increase.
An important question that may pop-up is – won’t the car be in-use? Research shows that most cars are in use about 2-3 hours of the day. Most times, we park our vehicles. It’s possible to exploit this situation for V2G, especially if the EV owner follows a patterned charge-and-use cycle; which is why using V2G for a company fleet proves to be the most productive business model.
Therefore, this leaves us with a large pool of mobile battery capacity that the grid can adopt for temporary energy storage. Aside from storing energy, we can use V2G to regulate the grid’s frequency and also manage the energy demand response during peak and off-peak periods.
All these said, the adoption of V2G adds value to these stakeholders:
- Utilities: V2G services can help to store and manage energy produced from RES. It’s also an economical solution for ancillary services in a grid.
- DSOs can adopt V2G services as a demand balancing mechanism and load control within a local grid.
- The EV owner enjoys monetary perks and favourable charging conditions.
- The EV Fleet manager is the focus of the article and thus deserves that we discuss separately. A company fleet manager also falls under this category.
Indirectly, adopting V2G saves the environment by promoting renewable energy sources and avoiding the production of new Lithium-ion batteries(whose manufacturing process can be harmful to the environment.)
How Can an EV Fleet Manager Benefit From The V2G Business Model?
For an individual user, V2G offers minimal benefit in comparison with the amount of investment that you will need for running a full V2G service. However, a fleet manager with access to a significant number of EVs can add a new source of revenue by adopting V2G services for the EVs managed by his/her company.
An EV fleet manager can provide V2G business services for frequency control or for managing peak shaving.
Frequency Control V2G business Model:
Through active communication with the grid, the EVs in a fleet supply energy or draw energy from the grid in response to its current frequency value. This model also favours the life-span of the EV’s batteries as it involves a shallow charge/discharge cycle of the battery.
Managing Peak Shaving V2G business Model:
During peak periods, the EVs supply energy to the grid to meet the excessively high demand for electricity. While during the off-peak hours, you can charge up your EVs to their normal state. Unlike the frequency control model, this reduces the life-span of the vehicle’s battery.
The analysis below is an excerpt from Kaufmann, A. (2017). Vehicle-to-Grid Business Model–Entering the Swiss Energy Market (Doctoral dissertation, University of St. Gallen).
“Assuming a 10kW bidirectional charger, and an EV available for V2G services 12 hours a day on average. The revenue accumulated over one month is 10kW x (12hr x 30days) x 0.029CHF/kWh = 104 CHF as a capacity price only.”
According to the analysis, the revenue you can generate per month from one EV is approximately $105, which sums up to $1,260 per year. A fleet with 20 EVs can produce up to $25,200 annually. Fifty EVs will generate $63,000 annually – this’ just an example as V2G services can be dynamic.
To boost revenue generation, an EV fleet manager can decide to target EV users with a more organised movement pattern and charging sequence.
Operating a V2G business service as a fleet manager will require an active management system that allows you to optimise your processes and provide your fleet services more efficiently. Our Hive Manager solution is integrated with blockchain technology to enable you to control your EV fleet system locally effectively.