
Beyond Just Driving: The Future of Vehicle-to-Grid Technology
By Cindy Wang
Wellington-based Master’s student from Shanghai
Passionate about green energy and innovation
September 15th, 2024| 8min

Have you ever noticed how your car spends most of its time parked, perhaps in your garage or a parking lot, doing absolutely nothing? It turns out that, on average, cars are parked 96% of the time, meaning they’re only in use for about an hour each day. But what if I told you that your electric vehicle (EV) could reduce the cost of owning it? How does that sound to you?
​
Today, we’re diving into an innovative concept: Vehicle-to-Grid technology. This revolutionary idea transforms your EV into a mini power plant, interacting with the power grid in a way that benefits you and eases the pressure on the grid during peak hours.
What is Vehicle-to-Grid technology
Vehicle-to-Grid, or V2G for short, involves using EVs as storage units for the power grid, allowing for the exchange of energy and some relevant information, such as battery’s state of charge, current and voltage. Imagine your EV not just consuming electricity from the grid but also feeding energy back into it. This is considered a form of bidirectional charging.

How Does It Work
EV batteries store energy in the form of direct current (DC), while our homes and the grid use alternating current (AC). This is where an inverter comes into play. Advanced bidirectional chargers (V2G chargers) equipped with smart inverters are used to convert DC to AC, enabling your car to power your home or feed energy back to the grid.
​
Despite the exciting prospects, V2G technology does have necessary requirements to support it. First your car has the bidirectional functions and it is not standard for each EV. Besides, one significant issue is the need for infrastructure development. V2G requires advanced bidirectional chargers equipped with smart inverters, which are not yet widely available. The installation of these systems can be costly, both for individuals and utility companies. Additionally, integrating V2G into the existing power grid requires complex grid management systems to handle the two-way flow of electricity and data. Yet another challenge is regulatory and policy frameworks. For V2G to be widely adopted, there must be clear regulations regarding the sale of electricity back to the grid, standardization of equipment, and incentives for both EV owners and energy providers. This includes addressing potential cybersecurity concerns, as V2G systems could be vulnerable to hacking if not properly secured.
Real - World Applications: The Shanghai Example

Take Shanghai, a modern city in China, as an example. The government and the electric car company NIO have established it as a pilot city for V2G technology.
​
Here’s how it works: EV owners charge their cars during off-peak hours when electricity prices are lower. They can store renewable energy during the day and then sell it back to the grid at a higher price during peak demand times, using bidirectional V2G chargers. This not only provides a financial incentive for EV owners but also helps stabilize the grid by balancing supply and demand. China released implementation guidelines that by 2030, China aims to have a comprehensive technical standard system for vehicle-to-grid (V2G) interaction in place, with a more refined market mechanism. Large-scale application of V2G technology is planned to be achieved.
​
Besides China, other countries, the USA, Germany, the UK, Netherlands and Australia are making progress as well. Several examples of cars that are compatible with V2G are: Nissan Leaf, Tesla Cybertruck, Volkswagen ID.4, Xpeng P7, all NIO models, all Li Auto models and BYD Han EV.
The Benefits
One of the most exciting aspects of V2G technology is its potential to support renewable energy sources like wind and solar power. These energy sources are intermittent, meaning they don’t produce electricity all the time. During periods of high renewable energy production and low demand, EVs can store the excess energy. Later, when renewable generation drops but demand spikes, these vehicles can feed the stored energy back into the grid, reducing the need for fossil-fuel-based power plants to come online.
​
According to the Chinese organization - State Grid Electric Power Research Institution, simulation results show that applied V2G can reduce the charging cost of EVs by 13.6%. The study was completed in the UK, upon the prices of electricity in British pound. Which means that as an EV owner, you can save a considerable amount on your electricity bills while also contributing to a greener grid.
Impact on Battery Lifespan
A common concern with V2G technology is whether frequent charging and discharging cycles could degrade the EV battery more quickly, potentially reducing its lifespan. Battery degradation can lead to a reduction in capacity over time, which reduces the range of a vehicle. For example, if an EV initially had a range of 100 miles, a 30% decrease in capacity would reduce its range to 70 miles. All batteries have a finite number of charge cycles before their capacity diminishes, and using them for grid support might seem like it would accelerate this wear and tear.
However, several studies have shown that with proper management and smart charging algorithms, the impact on battery lifespan can be minimal. Depth of Discharge (DoD) is an important factor in battery management and longevity, as deeper discharges can accelerate battery degradation. Research shows that V2G operation, when controlled in moderate DoD, won’t impact battery life negatively and may even extend battery life under certain scenarios.

V2G systems are carefully engineered to manage energy flow without compromising battery health. By controlling the depth of discharge and the frequency of cycling, these systems minimize the risk of wear and tear on the battery, ensuring its longevity while still supporting grid functions. Moreover, almost all modern EV batteries are built with robust thermal management systems and durable chemistries that are more resilient to cycling.
A Step Towards a Sustainable Future
The potential of V2G technology is vast. It’s not just about reducing costs or providing backup power; it’s about taking a significant step towards a resilient, flexible, more independent and sustainable energy system. By turning our vehicles into active participants in energy management, we support renewable energy sources and move closer to a sustainable future.
​
But remember, while V2G is an exciting development, it’s just one piece of the puzzle. Achieving a sustainable environment requires multiple improvements and innovations, from advancing renewable energy technologies to enhancing energy efficiency and grid infrastructure.
​
So, what do you think about V2G technology? Could your car become a part of this energy revolution? Share your thoughts in the comments below, and let’s explore the possibilities together!
Commenting Guidelines
-
Be Kind and Courteous
Please treat everyone with respect. Let’s engage in healthy, constructive discussions with kindness. -
No Hate Speech or Bullying
Bullying or harassment of any kind is not allowed. Discriminatory or degrading comments based on race, religion, culture, sexual orientation, gender, or identity will not be tolerated. -
No Promotions or Spam
This is a space for thoughtful discussions about EVs and related technologies. Please refrain from promoting businesses or posting irrelevant content.