February 11, 2014
Though negligible today, the market for plug-in electric vehicles (PEVs) equipped with vehicle-to-grid (V2G) technologies – which enable the vehicles to participate in ancillary services for the power grid – is expected to expand steadily in the coming years. Compelling business models for V2G technologies are starting to emerge in select markets around the world, and it’s expected that individually owned electric vehicles will be able to participate in grid services in the second half of this decade. Click to tweet: According to a recent report from Navigant Research, more than 250,000 V2G-enabled PEVs will be sold worldwide from 2013 to 2022.
“Plug-in electric vehicles can provide services to the grid by changing the rate at which they consume power, thereby reducing peak loads, or by providing power back to the grid, helping to balance loads on the grid,” says Scott Shepard, research analyst with Navigant Research. “The benefits to operators also include smoothing the integration of renewable energy resources and generation revenue from ancillary services markets.”
The U.S. Department of Defense has been a significant proponent of V2G technology. In early 2013, the Department announced that it would invest close to $20 million to install 500 V2G-enabled PEVs in military bases in specific U.S. electricity markets by the end of the year. Additionally, demonstrations and pilot projects using fleet vehicles in the United States, various Western European countries, and Japan indicate that V2G technologies can serve as effective assets in various grid services, the report finds.
The report, “Vehicle to Grid Technologies”, analyzes the market opportunity for V2G technologies to be used to support grid reliability and stability. The study considers various policy factors associated with the growth of V2G, as well as significant market drivers and barriers. Global market forecasts for V2G-enabled PEVs and V2G capacity and revenue, segmented by region, extend through 2022. The report also examines the major V2G technologies, provides case studies, and profiles key market participants. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Vehicle to Grid Technologies,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.