1000 EVs to help power grid in $3.2m trial

A new trial funded by the Australian Renewable Energy Agency (ARENA) will see up to 1000 drivers use their electric vehicles (EVs) as “batteries on wheels”, using vehicle-to-grid (V2G) technology.

In the transition from coal-fired power stations to help reach Australia's Net Zero by 2050 targets there is a need to find other baseload solutions to provide power when the sun doesn’t shine, and the wind doesn’t blow.

Because EVs have large lithium-ion batteries that are usually 4-5 times bigger than a home energy storage battery, there is the potential to use them to support the electricity grid.

According to ARENA, its V2X.au report published in June 2023 "...considers that bidirectional EV charging is potentially one of the largest and lowest cost sources of energy storage.”

However, first technology providers need to understand how home and EV owners can be incentivised to discharge the power from their EVs in a way that also helps support the grid at times when demand is high (such as in the evening.)

The trial will see wholesale electricity retailer Amber Energy develop software to enable EVs to “smart charge” and then discharge power to the grid, allowing EV owners to save money at the same time.

How much money can EV owners save by using V2G technology?

By taking advantage of V2G and dynamic pricing instead of simply "smart charging", EV owners could save thousands.

This could equal more than $8000 if a vehicle is owned for 10 years: up to $827 a year on average using V2G compared to smart charging, according to a February 2024 Network Tariffs for V2G report by energy consulting firm enX, commissioned by ARENA.

Electric vehicles still typically cost up to $20,000 more than their hybrid and internal combustion engine (ICE) equivalents. For example, the Kia Niro EV S is priced at around $72,000 driveaway in NSW, compared with just under $50,000 for the Kia Niro hybrid. Likewise, the MG ZS compact SUV is priced from $22,990 driveaway nationwide, compared to the MG ZS EV which is priced from $39,990 driveaway nationwide.

Reducing that price gap by more than $8000 could help make the decision to switch to electric easier.

How many drivers will participate in the V2G trial?

Up to 1000 EV owners will take part in the trial, which will also see 100 smart chargers, which can control when an EV charges off the grid or rooftop solar, and 50 vehicle-to-grid chargers, which allow an EV to discharge to the grid, installed in homes.

“With accelerating uptake of electric vehicles in Australia, this project will develop and demonstrate new ways for consumers to unlock value from their consumer energy resources and facilitate greater use of renewable energy,” said ARENA CEO Darren Miller about the trial.

“Our customers will be able to directly compete with big coal and gas generators just by smart charging and discharging their EV battery. This innovation not only strengthens our energy infrastructure but also aligns with a commitment to a sustainable future,” said Amber co-CEO Dan Adams.

EV owners from the Australian Capital Territory, New South Wales, Queensland, South Australia and Victoria will participate in the trial over the next two years. The V2G component of the trial is expected to commence in mid-2025.

Energy sector consulting firm enX will conduct an impartial validation of Amber's modeling of data from the trial to verify potential savings for customers, as well as evaluate the capacity of smart charging and V2G to assist in maintaining grid stability during the transition to renewable energy.