Bidirectional charging Q&A with Varun Thakkar
In September 2023, the Smart Electric Power Alliance (SEPA) released "The State of Bidirectional Charging in 2023," highlighting the substantial potential for transforming electric vehicles (EVs) into flexible grid assets. This shift offers utilities new revenue opportunities and a chance to reshape their relationships with customers. However, it's important to note that the industry is still in its early stages. To delve deeper into bidirectional charging's impact on utilities and practical steps to take, we interviewed CLEAResult Senior Practice Consultant Varun Thakkar.
Tell us, what is bidirectional charging?
Bidirectional charging enables an EV battery to both receive and return power. When connected to a charger, an EV typically draws power to charge its battery. With bidirectional charging, the EV can also feed excess stored electricity back into the system. This transforms an EV into a versatile power source that can support homes or the grid when needed.
As EVs require recharging, there's a strong possibility that they could draw power from renewable sources like solar panels and wind turbines during periods when they are generating more electricity than needed. This is particularly exciting as we currently do not efficiently capture excess renewable energy. With EVs serving as a new mobile power source, we can begin to harness this surplus energy. There’s a lot to get into, so we’ll explore that in another post.
So, why is this important for utilities?
This is great news for utilities. If we can effectively tap into the power stored in all the EV batteries out there, it unlocks a massive mobile energy storage system. Currently, this combined power potential is approximately 126 gigawatt-hours, roughly five times the capacity of all stationary battery storage systems in the US as of 2022. As more people switch to EVs, this clean energy resource will only keep growing.
Bidirectional charging also provides a fresh way for utilities to engage with their customers. They can help EV owners save money on overall vehicle expenses by using the energy already stored in their cars to earn extra income. It’s a win-win situation. Bidirectional charging can also reduce the strain on the grid during peak demand times, making the grid more reliable for us all.
We’ve heard new vocabulary associated with bidirectional charging. What exactly are V2X, V2B, V2G?
Bidirectional charging and Vehicle to Everything (V2X) are umbrella terms for the different ways this technology can be used. Let’s break it down into simpler terms.
- Vehicle-to-building (V2B): This setup allows your EV to power your home or workplace. It’s like having a backup generator but using your car as the source of power. This can be really useful, especially when you don’t want to send power back to the grid, which can sometimes be a bit complicated.
Vehicle-to-Grid (V2G): Your EV can not only power your home but also share its extra electricity with the grid which helps the grid become more stable, reliable and incorporate more renewable energy.
How you use these setups depends on the technological capabilities of your EV and charging system, local rules and laws, and what your neighborhood or city needs in terms of power.
For example, if a utility is struggling with high peak prices and doesn’t want too many people sending power back to the grid, they might focus on V2B setups. It’s about picking the right setup that fits your situation.
What about managed charging and its relationship to V2X?
When you bring managed charging and V2X together, something very interesting happens. EVs become flexible tools for managing electricity. Here’s how it works:
Managed charging refers to controlling when and how EVs charge to make sure it doesn’t put too much strain on the grid. V2X takes managed charging to the next level. Now your EV can step up and help the grid during those heavy demand times.
It’s a partnership between the EV owner and the utility company. With V2X there are new ways for your customers to make money and provide extra help to the grid.
Who are ideal targets for bidirectional charging programs or pilots?
When we’re talking about who should try out bidirectional charging first, we’re looking for certain types of people and situations. First off, residential customers who live in a house or an apartment with a charger nearby and who are usually home on a regular schedule are great candidates. They have a perfect setup for bidirectional charging right at home.
Second, there are fleet owners who own a bunch of vehicles, like school buses, which can also benefit. If those vehicles have some downtime when they’re not in use, bidirectional charging can be a game-changer.
For the customer, the benefit is simple—it’s an easy way to earn extra money and save on costs. For example, in a pilot program in the UK, participants earned an average of $300 a year just for participating.
V2X can help customers spend less money owning and running their vehicles. Using EVs to power their home or sell electricity back to the grid can offset some of the costs of EV ownership, like charging and general maintenance.
What are some of the barriers to wide-scale adoption?
There are technological, behavioral, and regulatory barriers to wide-scale adoption of bidirectional charging.
From a technological standpoint, different manufacturers use various charging protocols, which can make bidirectional compatibility complex. Standardizing these protocols is crucial for seamless integration. Not all EV manufacturers offer bidirectional charging capabilities, so ensuring more original equipment manufacturers (OEMs) support this technology is essential. Finally, demonstrating that bidirectional charging systems meet strict safety standards is vital to reassure customers and regulatory authorities.
From a behavioral standpoint, customer education via utility programs will be critical. Many people are not familiar with bidirectional charging. Utilities and manufacturers need to educate customers about its benefits and how to use it. Encouraging customers to connect their EVs to chargers even when they don’t need a charge is a new habit that needs to be fostered.
From a regulatory standpoint, utilities must gather data from pilot programs to demonstrate the benefits of bidirectional charging to regulators. This data is essential to gain regulatory approval and support for widespread implementation. Regulators play a pivotal role in authorizing programs that maximize the value of bidirectional charging at a local level. These programs need to be tailored to the specific needs of each area.
What are some of your recommendations for utilities, especially when it comes to their existing managed charging programs?
We are really emphasizing a crawl, walk, run approach with our clients. There are a lot of interrelated factors that have to come together to successfully scale this technology’s value proposition within a utility territory, but the opportunity is too big to miss out on!
We recommend that clients start with small-scale pilots to assess the technical feasibility of bidirectional charging within a utility’s territory. Then, they can scale up to a bigger pilot to quantify costs and benefits. With that data, utilities can better understand how the technology works within their specific context, and they can then design a full-scale program and seek regulatory approval.
Of course, getting regulators and other stakeholders engaged from the outset is never a bad idea and can ensure that all the necessary groundwork is covered by the pilots. Prioritizing customer education and awareness programs to ensure that your customers understand the benefits and how to use bidirectional charging effectively. And finally, be prepared to adapt your approach as the bidirectional charging landscape evolves.
Thank you, Varun! Any last, summarizing thoughts on bidirectional charging?
Thanks for the opportunity. In summary, bidirectional charging acts as a bridge between renewable energy sources and the grid, optimizing the use of clean energy and enhancing overall energy sustainability. It’s a key tool in the transition to a more environmentally friendly and efficient energy system.
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Varun Thakker
Sr. Consultant, Transportation Electrification Practice
Varun’s work at CLEAResult focuses on ensuring that our portfolio of EV Programs is well supported and continues to focus on product ideation and evolution. He has recently been involved in product development and deployment for CLEAResult’s Fleet Electrification Management product offering. In addition, he provides program management and engineering support to our portfolio of EV Programs and is the lead on our V2X product development roadmap. Varun is remotely based in Arizona.
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