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WHY V2X - OR 'VEHICLE TO EVERYTHING' - REALLY MATTERS.

Research report on the regulatory framework for bidirectional EV charging in Europe.

New report by smartEn and DNV maps out Europe's electric vehicle bidirectional charging outlook

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Europe’s energy system increasingly needs flexibility. While large-scale energy storage technologies have been the main focus, the importance of small-scale solutions, is often overlooked. Demand-side flexibility (DSF) is one such solution that can help to integrate renewables, address the generation adequacy issue, balance demand and supply and make efficient use of electricity infrastructure. 

Bidirectional charging (also known as vehicle-to-everything or V2X and vehicle-to-grid or V2G) makes an important contribution to DSF by enabling electric vehicles (EVs) to become a Decentralised Energy Resource (DER), with energy storage functionalities on top of their primary transportation purpose.

Unlocking flexibility from EVs is not only a resource efficiency issue, it is also key to a fair and just energy transition. Indeed, without bidirectional charging, the terawatt-hours of batteries coming to Europe each year inside electric vehicles could be stranded assets 90% of the time when the vehicles are parked idle.

The role of policy and regulation is therefore to create the right framework for bidirectional charging and V2G to benefit all Europeans and to initiate the momentum required to scale these technologies. The study assesses the current regulatory frameworks impacting bidirectional EV charging in different countries across Europe and explore what regulatory and political measures are needed for the technology to transition from pilot projects to widespread commercial adoption.

Policy and market recommendations

The report provides an assessment of the regulatory environment of 11 selected countries: Belgium, Denmark, France, Germany, Great Britain, Italy, Netherlands, Norway, Poland, Spain and Sweden.

Following this review, it proposes a set of policy and market recommendations designed to encourage the rollout of V2X technologies across Europe through an enhanced legislative framework.

1. Remove double taxation of stored energy 
     Bring forward measures to remove double taxation of stored electricity and ensure consistency in the tax treatment of losses in the storage cycle across European countries.
2. Implement existing EU legislation
  On the following measures that promote V2X: 
  • Electricity pricing and grid tariff methodologies that stimulate grid-friendly behaviour and are symmetric for intake and offtake;

  • Open access to wholesale energy and balancing markets through an aggregation framework, allowing multiple service providers per connection point and making sure that market rules, such as metering requirements and minimum bid size, are fit for use;

  • Distribution system operators (DSOs) procuring flexibility in competitive markets; 

  • Accelerated rollout of smart meters, whilst also allowing the use of dedicated metering devices and sub-meters, to unlock flexibility.
3. Mandate bidirectional charging in certain public fleets and buildings with renewables
  Introduce mandates for bidirectional charging for publicly owned fleets with long duration parking and in buildings with a renewable energy source on-site.
4. Support development of V2X
  V2X must be able to participate in the same mechanisms that are open to other technologies (e.g. stationary storage). These include capacity remuneration mechanisms (CRMs) and specific tendering and subsidies (e.g. flexibility support schemes and via the Net-Zero Industrial Act)

“We manufacture EV chargers and supply EV charging infrastructure to customers across Europe, so we are acutely aware that businesses and consumers need clarity from governments and policymakers on the end-vision for bidirectional charging across Europe.
Without this, as the report says, EVs could be stranded assets 90% of the time when the vehicles are parked idle, and this is potentially a huge waste of the energy flexibility that Europe needs to balance variable renewables on the grid.”

Fabrice Roudet, general manager, Energy Transition, Eaton