Electric vehicle batteries could save the EU more than $106 billion by 2040

Storing renewable energy in electric vehicle (EV) batteries instead of stationary energy storage could help the European Union save more than $106.5 billion (€100 billion) over ten years, according to a study by the European Federation for Transport and Environment (T&E). If all these subtleties are worked out, electric vehicles could become the fourth largest electricity supplier in the EU by 2040.

To achieve their net-zero targets, EU countries are busy expanding renewable energy infrastructure using solar panels and wind power systems. However, the intermittent nature of these energy sources requires the use of energy storage solutions, which are expensive to build and maintain.

Electric vehicles, a critical component of the clean energy transition, can serve as a decentralized energy storage system, storing excess energy in their batteries and returning it to the grid when demand is high.

Including such functionality in electric vehicles could save the EU hundreds of billions of euros and also help electric vehicle owners, a study has found.

Benefits of bidirectional charging

With the growing popularity of electric vehicles around the world, bidirectional charging, where an electric vehicle supplies energy to either households (vehicle-to-home, V2H) or the grid (vehicle-to-grid, V2G), is now reaching a critical point.

A large fleet of electric vehicles in a country or region such as the EU can store excess energy generated in renewable energy sources daily and bring it back online when demand increases. The T&E study says this approach could save the EU $23.4 billion (€22 billion) a year by 2040.

The study estimates that this could help reduce the cost of operating energy infrastructure in the EU by eight percent and save $106.5 billion (€100 billion) between 2030 and 2040.

Thanks to the V2G system, the EU can also increase its solar power capacity by another 40 percent. By storing excess energy generated in batteries, electric vehicles could help meet nine percent of the EU’s energy needs by 2040, making it the fourth largest electricity supplier without investment in storage capacity.

How can electric vehicle owners benefit?

Using bidirectional chargers can help electric vehicle owners cut their annual energy bills by 52 percent. These savings vary depending on location, the size of the vehicle’s battery, and whether the EV owner has solar panels in their home.

If these conditions are met, the owner of an electric vehicle can save up to 780 euros per year on charging costs, as well as extend the life of their electric vehicle. battery packs. Contrary to common concerns about constant charging and discharging, this approach will help the battery maintain an optimal charge level and increase its lifespan by as much as nine percent.

Since bidirectional chargers cost only $106.5 (€100) more than conventional EV chargers, the EU can reap the benefits of this approach for free. The cost of the charger will pay off within a few months. However, EV manufacturers must ensure that their chargers are compatible and support V2G technology.

“V2G can only become popular if we ensure that all electric vehicles can work with all chargers,” said Fabian Sperka, transport policy manager at T&E, in the report. press release. “Lawmakers can unlock the potential of this technology by defining EU standards for bidirectional charging. This will be a win for consumers, the environment and progress towards EU climate and energy targets.”