Vehicle electrification and bidirectional charging technologies could potentially reduce EU energy expenses by a staggering €22 billion annually by the year 2040.
The Fraunhofer Institute has released a report urging the European Commission to implement regulations that mandate bidirectional compatibility for all new electric vehicle (EV) models and public chargers. This recommendation comes as the institute highlights the significant benefits that bidirectional charging could bring to the EU's energy system.
By 2040, EVs equipped with bidirectional charging could supply as much as 15-20% of peak electricity needs, according to the report. This potential contribution is just one part of the benefits, with bidirectional charging set to lower EU energy system costs by 5.5% by 2030, equating to €9.7 billion annually.
However, the necessary infrastructure for bidirectional charging, such as bidirectional charging stations, is currently limited. The report recommends making bidirectional charging capabilities mandatory in all new EV models and expanding public access to bidirectional-compatible chargers.
Europe lacks standardised technology for bidirectional charging, with various manufacturers adopting either AC or DC charging standards. To address this, the report suggests coordinated efforts across EU member states, from adopting standardised charging technology to rolling out supportive policies.
The EU countries with the greatest potential to contribute to cost savings and strengthen power grids through bidirectional charging of electric vehicles are those with already high numbers of bidirectional-capable EVs and strong renewable energy integration, such as Germany (notably North Rhine-Westphalia). The Fraunhofer Institute recommends regulatory support for grid feed-in, investment in smart grid infrastructure, and incentives for integrating vehicle-to-grid (V2G) technologies across Europe.
Italy and Spain, with their abundant solar resources, stand to gain the most from bidirectional charging, the report suggests. Bidirectional charging can provide robust storage and flexibility for solar and wind power in Europe, potentially adding an additional 430 gigawatts of solar power to the EU, almost twice its current capacity, by 2040.
Bidirectional charging could also help the EU reduce backup power plant capacity by 126 GW, cutting costs further. In addition, bidirectional charging could save an estimated €9.8 billion in grid expansion costs by 2040.
EVs in the EU could supply up to 9% of Europe's electricity demand by 2040, making them the fourth-largest power source. Bidirectional EV charging could decrease the need for stationary battery storage by as much as 92% by 2040. By 2040, this figure could rise to €22.2 billion per year, resulting in cumulative savings of around €175 billion.
European EV drivers could save between 4% and 52% on their annual electricity costs with bidirectional charging. Not all current EV models are capable of bidirectional charging, but the report emphasises the need for manufacturers to prioritise this technology to fully realise its potential benefits.
Germany, France, and the UK also have substantial potential to reduce costs and strengthen their grids by incorporating EVs into their energy plans. Bidirectional charging could extend EV battery life by up to 9%, making it a win-win solution for both the environment and consumers.
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