Trends such as energy efficiency, electrification and decentralization are rapidly changing the electricity market as we know it. One of the biggest effects of these trends is the increasing demand for so-called balancing energy, which can quickly compensate demand or production peaks.
Traditionally, the balancing of those peaks has been provided by pumped storage- or gas fired power plants. However, the use of these high performers among the power plants is extremely cost intensive and the potential for expansion is limited.
For this reason, the market is looking for new ways to counteract this problem.
Compensate peak energy demands with electric car batteries
Not only the energy, but also the automotive industry is facing big transitions. The internal combustion engine is considered inefficient, as well as responsible for climate damaging emissions. For this reason, electric cars are becoming increasingly popular and are now also an integral part of the OEM’s strategies.
Assuming that more and more electric cars can be found on the streets, each of them has an electric battery and keeping in mind that a car is usually not used 90% of the day, it is easy to notice that in this situation an enormous amount of electrical storage would be available.
The business model that has recognized this opportunity is called Vehicle to Grid, or in short V2G.
Vehicle to Grid – earn extra money with your electric car
This is a concept for shifting the storage and delivery of electricity from the public power grid to electric and / or hybrid cars. In contrast to pure electric cars, the vehicles should not only use power from the grid but feed it in again in times of high electricity demand. Thus, power plants that produce expensive peak load power can be dispensed or at least their usage could be limited. Therefore, V2G could become a core component of electromobility.
This business model offers very promising opportunities taking into consideration that additional investments in expensive power plants are becoming obsolete. In addition, owners of electric vehicles can use the spare time of their vehicle to earn cash, which would make electromobility more popular and function as a leverage effect.
