Technology and economics of electric vehicle power transfer: insights for the automotive industry

Abstract

Abstract Battery-based electric vehicles (BEVs) in the United States (U.S.) set a new sales record in 2022, driven by technology, policy, environmental, and economic objectives. However, the rapid deployment of BEVs and charging infrastructure without a careful review of their integration with the electric grid can have negative economic impacts on reliable and resilient electricity supply. Bi-directional power transfer (Bi-Di) vehicle-grid integration technologies and services such as vehicle-to-home or building (V2H/B) and vehicle-to-grid (V2G) can potentially lower local and system peak demand, improve economics for grid operators, and benefit BEV customers. Original equipment manufacturers (OEMs) in the automotive industry are exploring technologies and economics (techno-economics) for Bi-Di services. The study conducted a literature review of eleven case studies in the U.S. and Europe that featured Bi-Di demonstrations from 2005 to 2022 to highlight insights and techno-economic opportunities and challenges for OEMs. The findings should motivate the OEMs to prioritize technology innovation and business models to increase BEV sales and gain continuous revenue from Bi-Di services, which can potentially transition "car makers" to "technology solution" companies.

Keywords

• Electric Vehicle (EV)
• Vehicle to Grid (V2G)
• Vehicle to Home (V2H)
• Smart charging
• EV charging infrastructure
• Vehicle Grid Integration (VGI) Technologies