Bidirectional charging, particularly vehicle-to-grid (V2G) technology, is emerging as a critical component of Australia’s energy transition.
A new report commissioned by the Australian Renewable Energy Agency (ARENA) and prepared by enX, titled V2X.au: Opportunities and Challenges for Bidirectional Charging in Australia, offers an in-depth look at the vast potential of this technology in the country.
The report outlines how V2G technology could play a crucial role in supporting Australia’s National Electricity Market (NEM) and overcoming some of the energy challenges the country faces as it shifts towards renewable energy.
The potential for V2G in Australia
V2G technology allows electric vehicles (EVs) to send stored power back to the grid, functioning as mobile batteries. This could be a game changer for Australia’s energy storage needs.
According to the report, by 2050, the projected energy storage capacity of the country’s EV fleet could be four times larger than the total storage required by the NEM.
With just 10 per cent of this capacity in use, it could meet 37 per cent of Australia’s storage needs, reducing the need for large-scale battery infrastructure and offsetting around $94 billion in storage investments at today’s prices.
Economic and consumer benefits
One of the major findings of the report is the potential for V2G to provide significant economic benefits for both consumers and the broader energy market. The cost of enabling V2G is relatively low, as it requires only a marginal increase in the cost of a V2G-capable EV charger.
Additionally, the battery comes as part of the vehicle, making it a highly cost-effective solution compared to large-scale battery storage.
In residential contexts, V2G could enable households to save on electricity costs, especially when paired with time-of-use (ToU) or dynamic pricing tariffs.
The report’s modelling shows that in some cases, EV owners using V2G could make a profit by selling energy back to the grid at peak times, especially in regions like New South Wales and South Australia.
Challenges to adoption
Despite its immense potential, Australia is currently lagging behind other countries in terms of adopting V2G technology.
The report highlights several obstacles, including a lack of a cohesive policy framework, complex regulatory standards, and limited engagement with international standards development.
Unlike jurisdictions like California, South Korea, and parts of Europe, Australia’s policy and technical landscape remains fragmented, making it a difficult market for original equipment manufacturers (OEMs) to introduce V2G products.
In addition, the Australian energy market’s regulatory frameworks are not yet fully prepared to handle the widespread integration of V2G technology.
The current AS 4777.2:2020 standards for grid-connected inverters, which apply to solar and stationary batteries, are not yet adapted for bidirectional EV chargers. This has created hurdles for manufacturers who are unable to get their products certified for the Australian market.
The way forward
To fully harness the benefits of V2G technology, Australia needs to take a number of steps. The report suggests that the country adopt a national V2G strategy as part of its broader EV policy.
This strategy should prioritise the adoption of flexible network tariffs that support bidirectional energy flow, along with reforms to grid connection standards to accommodate V2G?.
Moreover, early-stage commercial trials and targeted funding initiatives from ARENA could help facilitate the development of the necessary supply chain infrastructure.
International collaborations on standards and product homologation are also crucial to overcoming Australia’s current regulatory bottlenecks.
The potential for V2G technology in Australia is enormous, with the capacity to reshape the country’s energy market and accelerate its transition to renewable energy.
However, significant policy, regulatory, and technical challenges must be addressed to unlock these benefits.
