The A to Z of V2G A comprehensive analysis of vehicle-to-grid technology worldwide Laura Jones, Kathryn Lucas-Healey, Björn Sturmberg, Hugo Temby and Monirul Islam January 2021 This report has been created for knowledge sharing as part of the Realising Electric Vehicle to Grid Services project. This Project received funding from ARENA as part of ARENA’s Advancing Renewables Program. The views expressed herein are not necessarily the views of the Australian Government. Contents Contents ............................................................................................................................... 2 Executive Summary .............................................................................................................. 6 Recommendations............................................................................................................. 9 Standards and rules ....................................................................................................... 9 Customer value proposition ......................................................................................... 10 Open value transfer ..................................................................................................... 11 Fostering an industry ................................................................................................... 12 1 Introduction .................................................................................................................. 14 1.1 Purpose ................................................................................................................ 14 1.2 Scope ................................................................................................................... 14 1.3 Framing ................................................................................................................ 15 1.4 Structure ............................................................................................................... 16 2 Background .................................................................................................................. 18 2.1 The V2G concept .................................................................................................. 18 2.2 Landscape ............................................................................................................ 20 2.2.1 The energy landscape ................................................................................... 21 2.2.2 The transport landscape ................................................................................ 23 2.3 Enabling infrastructures ........................................................................................ 24 2.4 Socio-technical context ......................................................................................... 25 3 Benefits ........................................................................................................................ 27 3.1 New value streams ............................................................................................... 29 3.1.1 To users ......................................................................................................... 29 3.1.2 To service providers ....................................................................................... 33 3.2 Electricity system .................................................................................................. 33 3.2.1 Electricity production ...................................................................................... 33 3.2.2 Electricity delivery .......................................................................................... 46 3.3 Societal co-benefits ............................................................................................... 56 3.3.1 Equity ............................................................................................................ 56 3.3.2 Health and climate ......................................................................................... 57 3.3.3 Trust .............................................................................................................. 57 4 Challenges ................................................................................................................... 59 4.1 Barriers to uptake ................................................................................................. 60 4.1.1 For users ....................................................................................................... 60 4.1.2 For service providers ..................................................................................... 64 4.2 Electricity system .................................................................................................. 65 2 The A to Z of V2G 4.2.1 Electricity production ...................................................................................... 65 4.2.2 Electricity delivery .......................................................................................... 71 4.3 Socio-technical change ......................................................................................... 75 5 Implementation landscape ........................................................................................... 77 5.1 Technology ........................................................................................................... 77 5.1.1 Vehicle ........................................................................................................... 77 5.1.2 Battery degradation........................................................................................ 78 5.1.3 Charger .......................................................................................................... 78 5.1.4 Charging standards........................................................................................ 79 5.1.5 Charger installation ........................................................................................ 80 5.1.6 Software ........................................................................................................ 81 5.1.7 Metering ......................................................................................................... 82 5.2 Markets and policy ................................................................................................ 82 5.2.1 Market reform ................................................................................................ 82 5.2.2 Non-market policies ....................................................................................... 85 5.3 Business models ................................................................................................... 86 5.3.1 Potential aggregators ..................................................................................... 87 5.3.2 Cost stacks and operating costs .................................................................... 88 5.3.3 Bringing it all together: value stacking ............................................................ 89 5.3.4 Impact on other energy market participants ................................................... 90 5.4 Future trends ........................................................................................................ 90 5.4.1 EV Uptake forecasts ...................................................................................... 90 5.4.2 Battery technology ......................................................................................... 92 5.4.3 Autonomous vehicles ..................................................................................... 93 5.4.4 Scope of vehicles ........................................................................................... 93 6 Recommendations ....................................................................................................... 94 Standards and rules ..................................................................................................... 94 Customer value proposition ......................................................................................... 95 Open value transfer ..................................................................................................... 96 Fostering an industry ................................................................................................... 97 6.1 Government policies ............................................................................................. 98 6.1.1 The case for action ........................................................................................ 98 6.1.2 Regulatory reform .......................................................................................... 98 6.1.3 Funded programs .......................................................................................... 99 6.1.4 Advocacy ....................................................................................................... 99 6.1.5 Stakeholder network facilitation ................................................................... 100 6.2 Industry ............................................................................................................... 100 3 The A to Z of V2G 6.2.1 Collaborate .................................................................................................. 100 6.2.2 Develop business models ............................................................................ 101 6.2.3 Develop technical capacity ..........................................................................