Despite the recent “news” about the slowdown in electric vehicle (EV) sales, 2023 saw a record level of EV adoption. In 2023, EVs reached 7.6 percent of new vehicle sales nationally, according to Kelley Blue Book estimates, up from 5.9 percent in 2022. The U.S. now has over 2 million registered EVs on the nation’s roads.
Much of the focus today is on expanding public access charging. Given the short dwell times, on-the-go charging is not conducive to bidirectional charging. However, the vast majority of charging takes place at home and fleet depots, which could benefit significantly from Vehicle-to-Everything (V2X) bidirectional charging. Still, virtually all the chargers installed today only operate in one direction – Grid-to-Vehicle. This represents a significant lost opportunity to generate revenue for EV owners, which is critical to address the significant cost barrier to EV adoption. It is also key to maintaining grid stability in the face of increased load from EVs as well as increased renewable energy generation.
The rapid advancement in bidirectional charging technology and the inevitability of the growth of bidirectional charging makes it clear that focusing on investing in one-way charging infrastructure may lead to a significant stranded asset problem. Policymakers have not yet enacted programs to reward V2X bidirectional charging in light of its added value and thus are contributing to this problem. Today, understanding the importance of V2X bidirectional charging is paramount to staying ahead in the EV revolution.
Bidirectional charging flips the script on traditional charging by enabling EVs to draw power from the grid and also feed energy back when needed.
Many EV manufacturers have announced plans to make and sell bidirectionally enabled EVs, including General Motors’ announcement last year, committing to making all of its EVs bidirectional by the model year 2026. Many other EV manufacturers have made similar commitments.
Not all bidirectional charging is the same. Some bidirectionally enabled EVs, including Ford’s Lightning F150 electric truck, only operate as an emergency source of backup power for a home during a power outage. Other bidirectional EVs can only power appliances like an electric coffee maker when camping in the wilderness.
The most valuable form of bidirectional charging is when EVs can send power to buildings and the grid when the grid is up. This is known as Vehicle-to-Building (V2B) and Vehicle-to-Grid (V2G) technology and is often described as being “grid-tied.” EVs with V2G capabilities can provide valuable grid services, earning revenue for EV owners when parked.
One of the most compelling aspects of bidirectional charging with V2G is its ability to enhance grid stability and resilience. Utilities can tap into a decentralized power source during peak demand or grid disturbances by harnessing the energy stored in EV batteries. This not only helps to alleviate strain on the grid but also reduces the need for costly infrastructure upgrades. Unidirectional chargers can only add load to the grid, which can add to grid instability without smart charging often referred to as V1G. Additionally, V2X bidirectional charging facilitates the integration of renewable energy sources, such as solar and wind, by storing and redistributing surplus energy back into the grid when needed.
V2G can help avoid grid outages by sending energy back to the grid when supplies run low. However, when a grid outage is unavoidable due to a hurricane or other severe weather events that knock down power lines, bidirectional-capable EVs can deliver power to homes and businesses, providing emergency power to save property and lives. And unlike stationary storage, bidirectional-capable EVs can be relocated to provide backup power when and where it is needed.
The urgency of embracing V2X bidirectional charging becomes apparent when considering the long-term implications of investing exclusively in one-way charging infrastructure. As more EVs are equipped with bidirectional capabilities, traditional charging stations risk becoming obsolete, leaving behind a significant stranded asset. This scenario could result in wasted resources and missed opportunities to fully leverage the potential of EVs as a grid resource. By prioritizing V2X bidirectional charging today, we can ensure that our infrastructure remains adaptable and future-proofed against the evolving needs of the EV market and power grid.
Fortunately, the shift towards bidirectional charging is underway, with forward-thinking companies and governments investing in pilot projects and early commercial deployments to demonstrate its potential. However, widespread adoption will require collaboration across industries, regulatory support, and continued innovation in technology and standards. As consumers, policymakers, and stakeholders in the energy transition, we must advocate for adoption of V2X bidirectional charging and recognize its importance in shaping a more sustainable and resilient future.
The two-way flow of electricity holds immense potential to revolutionize how we think about EVs and their interaction with the power grid. Instead of being passive consumers of electricity, EVs equipped with V2X bidirectional charging capabilities become active participants in the global energy ecosystem, offering a range of benefits that extend far beyond transportation.
In the race towards a greener future, V2X bidirectional charging for fleets and residential applications is a crucial piece of the puzzle. By embracing this technology today, we can avoid the pitfalls of stranded assets and unlock the full potential of electric vehicles as a flexible and dynamic grid resource. The time is now to act and invest in bidirectional charging infrastructure and enact supportive policies and regulations to pave the way for a more sustainable and electrified tomorrow. Let's not be left behind in the one-way street of unidirectional charging.
About the Authors.
Steve Letendre, PhD, Senior Director of Regulatory Affairs at Fermata Energy, has over 25 years of expertise in distributed energy resources and future grid technologies, with notable contributions to over 80 publications in respected journals. His work focuses on advocating for policies and market reforms that enhance the value of Vehicle-to-Grid (V2G) technologies for the grid and consumers.
David Slutzky, founder and Chairman of the Board at Fermata Energy and a recognized leader in vehicle-to-grid technology, has leveraged his extensive experience as an entrepreneur and policy advisor to enhance EV battery value and grid resilience. With a background that includes roles as a Senior Policy Advisor at the White House and EPA, and as a Research Associate Professor at the University of Virginia, he combines expertise in environmental policy and global sustainability efforts.
