At-a-Glance:
In the energy storage industry, it can be easy to think that the growth trajectory is exceptional. Indeed, six months ago, in the IHS Markit Grid-Connected Energy Storage Market Tracker (our bi-annual evaluation of the energy storage industry), we predicted that the industry would double in size in 2021, with installations topping 10 GW for the first time. To learn more, read, “Vehicle-to-grid inches closer to reality, but barriers remain.”
Key Takeaways:
- This interface with the electricity grid, where electric vehicles or EVs both charge and discharge, is called vehicle-to-grid (V2G) and could operate at a scale that eclipses the current and projected stationary storage market.
- In addition to that, the incremental increase in cost of a bidirectional charger (the key component that needs to be added to an EV/EV charger to enable V2G, compared to the conventional alternative) is falling rapidly, with near parity expected in the next five years.
- Automotive OEMs already have over-air communication with their vehicles in many cases, and new EV chargers now invariably come with communications hardware to schedule charging.
- These communication and control interfaces could be leveraged to control V2G with minimal additional complexity.
- The combination of these factors will potentially enable V2G to be used as energy storage at an incredibly low cost.
Path to 100% Perspective:
Developing infrastructure to offer a reliable, resilient and flexible power system also requires planning for the growth in EV manufacturing, sales and operations. The federal government is adding billions of dollars in funding to develop solutions for the growing need for EV charging options, but innovation will also be required to meet the growing demand while also developing ways to maximize batteries as a replacement for fossil fuels both on and off the road.
Photo by Ralph Hutter on Unsplash