2025 in Review: More Products, Clearer Rules, Better Deployment Models

2025 in Review: More Products, Clearer Rules, Better Deployment Models

By Zach Woogen

As 2025 draws to a close, one thing feels unmistakably different than even a year ago: vehicle-grid integration (VGI) solutions are no longer confined to pilot programs and conference breakouts. The topic is showing up in national headlines, in utility program application budgets totaling tens of millions of dollars, and – in the case of bidirectional charging systems – in more products customers can buy and use today.

Amid these high notes and a year of shifting tides for overarching EV topics, VGIC’s vision remains unchanged: making it possible (and normal) for EVs to charge and discharge in ways that support both customer needs and a reliable, affordable, and efficient electric grid. What has changed is the momentum behind that mission.

Below is a quick look back at what moved forward in 2025 and a preview of what VGIC is preparing for in 2026.

2025 in Review

1) VGI concepts broke beyond the “insider” crowd and into mainstream media

This year, VGI began to break through in a significant way at the nation’s most prominent outlets, including the New York Times, Wall Street Journal, Washington Post, USA Today, and other forums for public discourse, with references from Governors, State Commissioners, and political pundits. The conversation is shifting from “is this real?” to “how can customers access this, and how fast can we scale it?”.

This awareness has driven bold response, focus, and progress from utilities, regulators, and other key decision-makers.

2) New products, including the emergence of residential grid-parallel bidirectional charging

We also saw a meaningful emerging VGI product trend: bidirectional charging systems are increasingly being marketed and deployed for use in grid-parallel configurations, not just for use when islanded from the grid.

These grid-parallel configurations enable:

• Customer bill savings (e.g., time-of-use optimization),

• Participation in grid programs (e.g., Demand Response or “Virtual Power Plant (VPP)” offerings), and

• Real-world “stress-testing” of utility interconnection processes, to ensure grid safety and reliability while informing future interconnection streamlining efforts.

For example, Ford recently launched its Home Power Management solution, which enables customers in select areas to leverage their bidirectional charging system to save money on their electric bill. Volvo and Polestar also launched their grid-parallel bidirectional charging collaboration with dcbel, while Kia and Hyundai launched and later expanded rollout of grid-parallel bidirectional charging from the Kia EV9 to the Kia EV6 and Hyundai Ioniq 9.

3) Interconnection progress: rules are starting to catch up

Interconnection was VGIC's first-ever strategic focus area back in 2020, and it remains our most important initiative to this day. In 2025, we saw significant progress on this front:

• Maryland: First comprehensive vehicle-to-grid (V2G) interconnection rules took effect, serving as a model framework that can be replicated in other states.

• Michigan: The Commission issued a declaratory ruling clarifying that systems operating in bidirectional charging mode only when islanded from the grid do not need to move through an interconnection process.

• California: The major utilities committed to - and the Commission approved - incorporating the alternative V2G AC certification pathway (i.e., the forthcoming UL 1741 CRD for distributed energy resources (DER) Systems) at least as an interim solution. Once UL 1741 SC is published, the state’s V2G AC Interconnection Working Group will re-convene to incorporate V2G AC configurations into Rule 21. Note that in 2020, the Commission clarified that V2G DC systems were already eligible to interconnect under Rule 21.

With additional engagement and developments on deck in Nevada, Texas, New York, and Massachusetts, VGIC is eager to continue its focus on clarifying and streamlining interconnection processes in 2026.

4) New deployment models: making bidirectional charging systems easier to access

In 2025, the industry and funding environment continued its shift from small demos to new, larger “deployment initiatives” that reduce friction for a larger number of early adopters.

• In Massachusetts, the MassCEC’s Vehicle-to-Everything (V2X) Demonstration project offers free bidirectional charging systems, including installation costs, to up to 100 residential, commercial, and school bus customers.

• In California, Bidirectional Energy and dcbel are offering deeply discounted bidirectional charging systems. This California Energy Commission-funded initiative ties these adoption incentives directly to program participation, encouraging grid-interactive charging and discharging.

• Bidirectional Energy is also offsetting upfront bidirectional charging system costs for customers in Connecticut, backed by the state’s Innovative Energy Solutions program.

• Specifically in Pacific Gas & Electric’s (PG&E’s) service territory, up to 1,000 customers can access enrollment incentives and other upfront cost support for bidirectional charging systems.

These larger-scale deployment initiatives are already yielding new lessons and insights to support the next stage of scale-up for bidirectional charging systems.

5) Building consistency for managed charging programs: VGIC’s Utility Collaboration Forum published Best Practices for Program and Pilot Development

Although there were many exciting developments in the bidirectional charging space in 2025, VGIC is proud to report on continued advancements for managed charging solutions. In March, VGIC published its Utility Collaboration Forum (UCF) Best Practices document, developed collaboratively with its 40 members as well as BC Hydro, Con Edison, National Grid, PG&E, Puget Sound Energy (PSE), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E). These Best Practices focus on VGI program and pilot development, offering guidance to utilities and commissioners on how to ensure new pilots and scaled-up programs are:

• Simple for customers,

• Workable for utilities, and

• Durable amid affordability concerns.

This work focused on shortening the learning curve for everyone and, in turn, accelerating the path to widespread VGI.

---

Two Developments to Come in 2026

1) A strong pipeline of emerging financial opportunities for customers

2026 is poised to be the year that VGI business models crystallize, from residential managed charging platforms and DER-backed fleet charging deployments to bidirectional charging systems and flexible service connection solutions for multi-family EV charging sites.

We’re tracking and proactively developing a growing list of pathways where VGI business models can become reliably financeable and scalable. See just a few of these emerging opportunities in the examples below:

• California: Proposed utility rate designs can provide more durable compensation for V2G customers, while utility proposals funded by the Low Carbon Fuel Standard regulation can supercharge distribution-optimized managed charging efforts. Meanwhile, critical utility-led efforts, including the Emergency Load Reduction Program and PG&E’s V2X pilots, provide a bridge while policy stakeholders cement a landscape of customer-centric, cost-effective compensation pathways.

• New York: Long-term reforms are on the docket as the state looks to tap into EVs (both unidirectional and bidirectional) as the largest source of load flexibility through 2040.

• Maryland: The Commission has ordered utilities to return in early 2026 with much stronger proposals for VPP and V2G programs that scale enrollment and have a far greater impact than those proposed in 2025.

• Colorado: The Commission is slated to adopt a customer- and aggregator-friendly VPP framework positioned to attract a significant number of EV customers.

• Connecticut: Forthcoming stakeholder work to ensure V2G can be incorporated into the state’s successful energy storage program.

• Virginia and Illinois: Growing legislative and regulatory activity to expand VPP programs and EV access to net metering tariffs, respectively, enabling VGI solutions to play a central role in the next generation of demand-side management and DER compensation.

In addition to these many “program dollars” activities, we also expect more industry engagement on behind-the-meter (BTM) time-of-use (TOU) optimization as a near-term customer value proposition, especially as many of these long-term financial opportunities await adoption.

2) Finish line in sight for standards that support V2G AC interconnection

Standards development work isn’t glamorous. Working groups are technically complex and, at times, political. Yet, we are encouraged by increased alignment and activity from key standards development bodies.

In 2026, we expect key progress on the two AC interconnection pathways (UL 1741 SC and the UL 1741 CRD for DER Systems). Once these pathways are published, we can expect attention to shift to incorporating these standards into utility interconnection rules and processes. This will support a repeatable model, ensuring familiarity and comfort for utilities tasked with maintaining safety and grid reliability.

---

Let’s Scale the Market Together in 2026!

None of this progress happens without the VGIC members and partners supporting our work, as well as the regulators, utilities, and implementers who show up and engage with us each and every day. From drafting and filing regulatory comments and testimony to testing products, iterating corporate strategy, and deploying systems and platforms, none of this work happens without time and resource investment.

If you’re an auto OEM, technology provider, charging site developer, installer, utility, regulator, advocate, or fleet that wants to help shape what widespread customer access to VGI solutions looks like in 2026, we’d love to work with you! Join VGIC membership or, for investor-owned utilities, participate in the Utility Collaboration Forum by emailing info@vgicouncil.org. You can also join our newsletter and follow us on LinkedIn to learn about the latest in VGI news, events, and market developments. The next wave of VGI innovation is here – let’s shape it together!

Maryland Becomes First to Adopt Comprehensive Vehicle-to-Grid (V2G) Interconnection Rules

Maryland Becomes First to Adopt Comprehensive Vehicle-to-Grid (V2G) Interconnection Rules

By Zach Woogen, Executive Director

The Vehicle-Grid Integration Council (VGIC) applauds the Maryland Public Service Commission (PSC) for its unanimous vote to adopt the nation’s first comprehensive suite of Vehicle-to-Grid (V2G) Interconnection Rules for both V2G DC and AC systems. Updated in the Code of Maryland Regulations (COMAR) 20.50, the guidelines now include the following key provisions:

1. All V2G DC systems (i.e., systems with a stationary inverter) are subject to the existing rules for stationary energy storage. This is consistent with treatment of V2G DC systems in California’s Rule 21, Massachusetts, New York, Colorado, and other states.

2. All V2G AC systems (i.e., systems where the inverter capabilities are onboard the vehicle) can seek interconnection with the utility under one of two pathways. This is a major step forward for the V2G industry, as it allows products to move through either certification process with the certainty that whichever pathway is chosen will be accepted onto the utility grid as a safe, reliable customer-sited energy resource.

   1. Option 1: Charger certified to UL 1741 SC and paired with a vehicle designed to the SAE J3072 standard.

   2. Option 2: Charger and vehicle certified to UL 1741 SB as a composite Distributed Energy Resources (DER) system.

3. Defines a V2G System. Notably, these rules do not include the term “V2G-Capable Electric Vehicle (EV)” or “V2G-Capable Electric Vehicle Supply Equipment (EVSE)”. If these terms were used, it could inadvertently require all vehicles capable of bidirectional charging, including all Nissan LEAF, Ford F-150 Lightning Electric, nearly every Chevrolet, Cadillac, and GMC battery EV, Tesla Cybertruck, and many more, to request a utility interconnection agreement regardless of whether a customer has made any investments or plans to use their system in bidirectional mode when operating in parallel to the grid.

4. Applies Appropriate Treatment to Backup-Only Systems. Following the long-standing norm for integrated backup generators and the explicit guidance in California and Michigan for certain bidirectional charging systems, these rules ensure that bidirectional charging systems used in bidirectional mode only when islanded from the grid (e.g., for backup power) are not errantly routed through a lengthy interconnection study process. Instead, customers using bidirectional charging systems in this manner need to notify the utility of the existence and location of these backup power systems. Meanwhile, customers using their charging systems in bidirectional mode when operating in parallel with the grid must move through the utility interconnection process to ensure safe and reliable grid operation.

   1. Similarly, bidirectional charging systems may be installed and operate in load-only mode until such time that a customer wishes to enable grid-parallel bidirectional charging operation, at which point the customer must first request utility interconnection. This is a critical component of the new rules, as it allows customers to install and use future-proofed charging stations even before a V2G program or rate is established. For example, school bus operators can electrify their fleets with bidirectional charging equipment and transport students without having to wait for a bidirectional charging system to move through an often lengthy interconnection process.

Maryland’s new V2G interconnection rules will officially go into effect on July 7, 2025. VGIC is actively engaged in similar efforts in California and Nevada and looks forward to continued engagement on V2G interconnection in its core states, which include New York, Massachusetts, Colorado, Texas, Illinois, and Michigan.

All Eyes Turn to Maryland Utilities to Propose Compelling V2G Rates…

Maryland’s new interconnection rules stem from the state’s Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act (H.B. 1256), which Governor Moore signed into law in May 2024 and when into effect in October 2024. The law also directs the utilities to propose compensation mechanisms for DERs, including V2G systems. With the utilities set to file applications with the Commission on June 30, 2025, VGIC eagerly awaits to see what is ultimately proposed. Will Maryland utilities follow New England’s Connected Solutions model, which offers a simple, bring-your-own-device summer demand response program? Or will the California utilities’ complex new real-time pricing model influence the upcoming utility proposals? With increased capacity constraints and resulting reliability needs from the bulk system to the distribution circuit level, VGIC believes the full value stack of avoided costs must be reflected in whatever mix of rates and programs are made available to compensate V2G customers.

And to Industry to Develop, Test, and Launch Products

Maryland’s new V2G interconnection rule is huge news for those developing bidirectional charging systems, including automotive original equipment manufacturers (OEMs) and charging manufacturers. In particular, those organizations working toward scalable V2G AC systems, wherein the inverter functions are onboard the vehicle, are given a clear signal to proceed in developing systems that work best for their respective business models. This type of regulatory certainty that provides options for a relatively nascent corner of the industry is a major accomplishment. The race is now on for technology providers to develop, test, and deploy these systems to ensure customers can leverage their EV batteries for more than just mobility.

A Master Class in Thoughtful, Efficient VGI Policy Development

VGIC commends the Maryland PSC and, in particular, its dedicated staff for shepherding a fair, accessible, focused, and efficient stakeholder process. In developing and adopting these guidelines, the Maryland PSC and its staff struck a reasonable balance between encouraging diverse stakeholder engagement and maintaining momentum toward its goals. This should serve as a clear signal to other jurisdictions: supporting the Vehicle-Grid Integration (VGI) market need not overwhelm parallel Commission or utility efforts related to EVs or DERs, nor is protracted, years-long “analysis paralysis” a necessary step of the policy making process.

Maryland’s advancements in V2G over only one year, with more significant developments still to come, provides a laudable case study that should be replicated closely by other states. For now, Maryland holds the crown for V2G and the value it promises in the fight for lower bills and a more reliable, secure, and resilient grid.

2024: A Year of Milestones and a Vision for the Future

2024: A Year of Milestones and a Vision for the Future

By Zach Woogen

As 2024 draws to a close, the vehicle-grid integration (VGI) industry has entered a new era of innovation, powered by significant market development advancements that set the stage for a groundbreaking 2025. This year, we've seen unprecedented growth and collaboration that will lay the foundation for a more affordable, reliable, and resilient electric grid that leverages flexible charging and discharging technologies. Here’s a look at the key wins we’re celebrating:

1. Oakland’s World-Record-Breaking V2G Site
   In a world-first, Oakland has become home to the largest vehicle-to-grid site, featuring 74 buses, each equipped with its own bidirectional charger. These buses are not only participating in demand response events during CAISO emergencies and other high-value periods but will also optimize charging and discharging under innovative dynamic rates reflecting near-real-time grid conditions. This is a monumental leap for bus fleet electrification and grid integration led by VGIC Utility Collaboration Forum (UCF) participant Pacific Gas and Electric (PG&E).

2. Sunrun and BGE Lead the Way with Grid-Parallel Home Charging
   In another milestone, Sunrun and BGE have pioneered the first grid-parallel home bidirectional charging using Ford F-150 Lightning vehicles from VGIC Leadership Circle member Ford Motor Company. Homeowners participating in this program are earning up to $200/kW-month for their participation, proving that grid-parallel vehicle-to-everything (V2X) isn’t just for fleets—it’s also a game-changer at the residential level.

3. Wave of New UL-Certified Bidirectional Charging Products
   2024 has seen a significant influx of UL-certified bidirectional charging products. From VGIC Leadership Circle members BorgWarner, Fermata, and Ford in 2023, to VGIC members GM, dcbel, and Tesla on the light-duty vehicle side, and Heliox, InCharge, and Tellus Power Green for medium- and heavy-duty vehicles, the availability of certified equipment is quickly propelling the V2X market forward.

4. New York’s $25M Load Management Technology Incentive Program
   New York is leading the charge with its $25 million Load Management Technology Incentive Program, which supports EV load management software, hardware, and integrated energy storage. This initiative is accelerating the grid optimization tools that will enable widespread flexible EV connection and management while providing critical cost relief to commercial charging sites across the state.

5. California Expands Managed Charging Program Offerings
   California continues to expand its managed charging footprint, with programs like Ford Energy Rewards and PG&E’s EV Charge Manager launched in partnership with VGIC member WeaveGrid, offering customers new opportunities to engage with emergency demand response and distribution-optimized load management, respectively.

6. California's $130M Zero Emission School Bus Infrastructure Program Requires Bidirectional Vehicles and Incrementally Incentivizes Bidirectional Chargers
   The state’s $130 million Zero Emission School Bus Infrastructure Program mandates bidirectional charging for all buses funded through the program and incentivizes bidirectional chargers with an additional $20,000 per port compared to unidirectional chargers—setting the stage for a new era in electrified school transportation.

7. California Opens Battery VPP Program to Bidirectional Charging
   California’s Demand Side Grid Support Option 3: Battery Virtual Power Plant (VPP) now deems bidirectional charging equipment eligible, offering up to $100/kW in summer incentives for vehicle battery discharging, further solidifying V2X’s role in support emergency reliability.

8. Maryland Takes the Lead on V2G Interconnection Rules
   Maryland’s Public Service Commission unanimously adopted proposed comprehensive V2G interconnection rules, including two available V2G AC interconnection pathways. With these updates, Maryland will become the first state to establish a standard, full-scale interconnection pathway for V2G AC systems, laying the groundwork for broader adoption and engagement in the state’s upcoming V2G-focused compensation mechanisms.

9. SCE and PG&E Launch Flexible Service Connection Pilots
   VGIC Utility Collaboration Forum participants Southern California Edison (SCE) and PG&E launched flexible service connection pilots (SCE’s Load Control Management Systems and PG&E’s FlexConnect), offering greater transparency and new options for customers that seek faster energization under a flexible connection arrangement. The utilities also published reports showing innovative “bridge-to-wires solutions” including these pilots as well as load limit letters. These mark significant process modernizations that enable widespread EV service connection while deferring or avoiding costly and time-consuming infrastructure upgrades. Utilities in Illinois, Massachusetts, and New York are developing similar approaches to support flexible EV service connection options.

10. Stakeholder Alignment and Thought Leadership
    From VGIC’s sold-out EVolve convening to the launch of our Utility Collaboration Forum, the collaborative foundation needed to scale VGI has never been stronger. Key publications, including the U.S. Department of Energy's The Future of Vehicle Grid Integration, the Alliance for Automotive Innovation’s Vehicle-Grid Integration: The Convergence of the Automotive and Electric Power Industries, the Smart Electric Power Alliance’s The State of Managed Charging in 2024, and the U.S. Department of Energy’s Flexible DER & EV Connections reflect a growing consensus on the transformative potential of V2G and VGI.

What’s Next for 2025?

As we look ahead to 2025, the managed charging, bidirectional charging, and DER-paired charging sectors are poised for even greater expansion. Here’s what to expect:

1. More V2H Backup Power Options
   Expect more vehicle-to-home (Vehicle-to-Home) solutions that give customers backup power options, enhancing overall community resiliency.

2. Growth of V2G in Virtual Power Plants
   V2G Virtual Power Plant (VPP) offerings will become more widely available in states like Massachusetts, Colorado, and Maryland, complementing existing programs in California, New York, and Rhode Island.

3. Evolution of Grid Planning Tools
   The integration of transportation electrification and grid planning will evolve, creating smarter, more efficient systems for managing both transportation and energy needs.

4. Coordinated Progress on Flexible Service Connections & Proactive Planning
   Flexible service connections and proactive planning will continue to develop hand-in-hand, reducing ratepayer costs while helping utilities manage the influx of EVs.

5. 2025: “The Year of VGI”
   The stage is set for VGI to shine in 2025. With increased funding, new compensation mechanisms, newly certified products, and improved customer engagement strategies, the market is primed for rapid growth.

Building a Brighter Future Together

VGIC is working with its Leadership Circle, General Members, Associate Members, Utility Collaboration Forum Participants, and partners to unlock the full potential of managed charging, bidirectional charging, and DER-paired charging through innovative utility programs, interconnection standards, flexible service connections, and customer engagement strategies. The future is bright, and the foundation we’ve laid to date will power a cleaner, more resilient grid for generations to come.

To stay ahead of the curve and help shape the future of this market, join VGIC today—or, for investor-owned utilities, participate in our Utility Collaboration Forum by emailing info@vgicouncil.org. You can also join our newsletter and follow us on LinkedIn to learn about the latest in VGI news, events, and market developments. The next wave of VGI innovation is coming—let’s build it together.

Start Spreading the News: Vehicle-Grid Integration Progress in New York

Start Spreading the News: Vehicle-Grid Integration Progress in New York

By Thanh Nguyen

Significant strides have been made in the last year for the advancement of the vehicle-grid integration (VGI) market in New York. Thanks to the leadership of the New York Public Service Commission’s (PSC) and advocacy efforts from VGIC and other stakeholders, there has been commendable progress in establishing policies and programs to promote the use of VGI solutions for the benefit of the grid and electric vehicle (EV) owners alike.

One notable development is the approval of managed charging programs for commercial EV customers, building upon the residential managed charging programs established in 2022. The new commercial managed charging programs — already available in Con Edison’s and Orange & Rockland’s service territories — provide incentives to encourage EV customers to avoid charging during local peak periods and instead charge overnight. These programs provide an opportunity for fleets to reduce their charging costs by aligning their charging schedules with the grid’s needs.

Meanwhile, the PSC’s directive requiring all New York utilities to update their Value of Distributed Energy Resources (VDER) tariffs to expand eligibility to vehicle-to-grid (V2G) projects demonstrates additional forward movement. This change ensures that V2G projects can receive compensation for exporting power to the grid, helping New York leverage EVs as another type of DER that can provide crucial grid services.

The PSC has also set the stage for additional programs and policies in the coming year. The Commission is considering the utilities’ proposed Load Management Technology Incentive Program, which would provide incentives to support the deployment of demand management technologies that can help mitigate grid upgrades needed to support new EV charging sites. Additionally, the PSC has designated the Technical Standards Working Group as the avenue to identify and resolve remaining barriers to VGI, as well as the EV Infrastructure Interconnection Working Group to discuss interconnection issues. The ongoing proceeding on Medium- and Heavy-Duty EV Charging Infrastructure also presents an opportunity for the PSC to advance VGI solutions specific to this market segment.

While we celebrate the demonstrable progress achieved thus far, the VGIC remains committed to unlocking the full potential of VGI in New York. VGIC has put forward a proposal for a new demand response program tailored to V2G systems, modeled after similar programs in nearby states, to improve available compensation under VDER. This program would help ensure that V2G exports are adequately compensated and help create the needed incentive structures to attract new investment in this critical technology. VGIC looks forward to continuing our collaboration with the PSC, utilities, and other stakeholders in New York to advance the role of VGI solutions in meeting the state’s energy needs as it transitions toward a decarbonized future. If you are interested in learning more, please email info@vgicouncil.org.

Driving Toward the VGI Market Inflection Point

Driving Toward the VGI Market Inflection Point

By Zach Woogen & Shannon McGuire

At the turn of 2023, the Vehicle-Grid Integration Council (VGIC) knew it would be a transformative year for the organization and the VGI ecosystem. Thanks in part to the tireless efforts of the VGIC membership and our team, 2023 has exceeded all expectations.

VGIC continued our high operating pace by submitting nearly 50 unique regulatory filings to shape the VGI market through in-depth policy advocacy, while also growing and strengthening our industry and educational efforts. The VGIC team hosted, moderated, and was featured on dozens of speaking engagements this year, including our Triple Crown VGI: Optimizing EV Charging with Solar Power and Energy Storage webinar, the NARUC Summer Policy Summit, EV Charging Summit & Expo, ACT Expo, Forth Roadmap, two V2G Business, Policy, and Technology Forums, and many more. The rich conversations helped to deepen connectivity and understanding among key stakeholders and added to the construction of a critical industry foundation to expand VGI opportunities for our members and unlock value for EV fleets and drivers.

VGIC was one of nine partnerships propelling the U.S. Department of Energy’s Vehicle-to-Everything Memorandum of Understanding or “V2X MOU” through 2023. This forum is an important means to build momentum in the ecosystem, pushing us closer to our goal of a clean energy future powered by EVs.

Further, VGIC hit an important milestone of hosting more than 40 members, nearly double the number in 2022. VGIC hosted our Annual Member Meeting in Detroit earlier this fall, convening VGIC’s membership to strategize and dive deep into the issues that matter most. Members and staff identified key policy barriers and goals for 2024 and, through topic-specific breakout groups, developed strategies to address them. The Annual Member Meeting also played host to two excellent panels.

During the “Mapping VGI Market Challenges and Growth Potential” panel, leading utilities shared their initiatives and questions about managed charging program design, bidirectional charger interconnection, telematics and submetering, and automated load management solutions. VGIC also moderated a panel with foremost VGI decision-makers on how to “Unlock EV Flexibility Through Virtual Power Plants,” where the conversation ranged from utility regulatory reform and planning initiatives to technical standardization and industry coordination.

The culmination of our previous years’ efforts resulted in several key policy wins for VGIC in 2023, including ensuring VGIC’s adaptive load management (ALM) proposals were adopted in New York, preserving favorable terms for VGI within California’s Emergency Load Reduction Program, advancing submetering and telematics implementation throughout the country, and widely disseminating best practices for V2X Bidirectional Charging Interconnection and Service Connection. These policy wins represent the scaffolding for a range of commercial opportunities open to VGI solutions, including for light-duty passenger EVs, light-duty fleets, and medium- and heavy-duty fleets.

These developments come at a critical time for the market, as solution providers are moving swiftly to standardize their product and service offerings, prioritize investment in first mover markets like California and New York, and scale operations to grow beyond the pilot stage of the industry.

As we move into 2024, VGIC is eager to grow its impact through increased education, unique collaborations with decision-makers and market makers, and targeted policy advocacy.

To learn more about VGIC and the role it plays in unlocking the value of EVs and smart EV charging as a strategic grid resource,

Major Automakers Invest in EV Infrastructure Development

Major Automakers Invest in EV Infrastructure Development

By Vicky Tran

Major automakers are teaming up to address the shortage of EV charging stations across the United States with a $1 billion joint investment (The Wall Street Journal, 2023). BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, and Stellantis plan to implement as many as 30,000 new charging installations that will offer both Combined Charging System (CCS) and North American Charging Standard (NACS) connectors. In this remarkable collaboration, these automakers are joining forces to not only alleviate capital costs for required infrastructure buildouts but also to mitigate the risks associated with transportation electrification. Among the manufacturers, three — General Motors, Honda, and Stellantis — are Vehicle-Grid Integration Council (VGIC) members.

Based on a new report from the U.S. Department of Energy (DOE), as of July 2023, there are 32,000 publicly accessible DC fast chargers across the U.S. This footprint is not sufficient to meet the anticipated growth of EVs, however the National Renewable Energy Laboratory estimates that a staggering 182,000 DC fast chargers will be required to support a projected 30-42 million EVs. By expanding charging infrastructure, these automakers hope to encourage the adoption of EVs across the country.

Loading alternative fueling station locator...

Electric Vehicle Charging Station Locations (Source: U.S. Department of Energy)

Enhanced Customer Satisfaction and Zero-emission Driving

The initial stations are set to debut next summer, followed by Canada at a later stage. These chargers will derive 100% of their power from renewable energy and be strategically placed in high-traffic areas such as bustling cities, well-traveled highways, and popular vacation routes. The ultimate objective is to conveniently provide charging stations wherever individuals may choose to reside, work, or travel.

VGIC's Role as a Catalyst for Stakeholder Collaboration

This news comes on the heels of the DOE’s announcement of nine additional partnerships propelling the Vehicle-to-Everything Initiative (V2X) Memorandum of Understanding (MOU) forward. VGIC and members WeaveGrid, Wallbox, and Peak Power are part of the latest signatories. We are seeing momentum in the ecosystem, pushing us closer to our goal of a clean energy future.

VGIC is at the forefront of shaping regulatory policies for EVs as distributed energy resources and rallying key stakeholder support for focused implementation. At VGIC, we are committed to ensuring that the benefits of EV deployments and flexible charging and discharging are recognized and compensated, contributing to a stronger, more affordable, and highly efficient electric grid.

VGIC is pleased to host its Annual Member Meeting on October 17 to recap a very eventful year in the space and ensure alignment and partnership on go-forward strategies to ensure EV deployments continue to grow and that the value streams EVs supply are known. This year's event will occur at Newlab, a technology center within a larger mobility innovation district in Detroit, Michigan. Don’t miss the opportunity to network with industry leaders and secure your spot.

Setting the Pace: Driving the VGI Revolution Forward

Setting the Pace: Driving the VGI Revolution Forward

Reflections on an inspiring and transformative year at VGIC 

By Ed Burgess

The turning of the calendar to a new year is a natural time to take stock. By any measurement, I am extremely proud of the achievements of Vehicle-Grid Integration Council team over the past 12 months, and am excited by what is in store in 2023 for our organization and how we plan to support the VGI ecosystem during this truly dynamic and transformative period.   

The team operated at a very high tempo in 2022, submitting more than 40 unique regulatory filings, while also expanding and deepening our industry and stakeholder education efforts. These included initiating our new quarterly newsletter to a rapidly expanding audience, as well as hosting an informative webinar with guests from Nuvve and Ford Motor to dive deep on the VGI incentives codified in the Bipartisan Infrastructure Law. The team was also quite active at industry events. In particular, we drew big crowds at Forth Roadmap and the EverythingEV USA conferences.  

Last but not least, we were incredibly pleased by the interest we received for our V2X Interconnection Best Practices special initiative and the best practices we identified. We are thankful for the organizations that have already signed up as members of this new working group and expect there will be considerable forward movement in the V2X space in 2023 and beyond.  

We see strong evidence that our efforts are bearing fruit. In particular, we are thrilled to have worked with Pacific Gas & Electric Co. to establish the country’s first V2G export rate for commercial electric vehicles, and believe this landmark pilot lays the groundwork to establish other innovative V2G programs across the country. Also in California, VGIC supported the California Public Utility Commission’s (CPUC) submetering decision, making the Golden State the nation’s first to enable subtractive billing by EVSEs and moved forward prospects for establishing a telematics-based protocol. We were also pleased to see the California Air Resources Board (CARB) adopt ACC 2 regulations, which allow for more flexibility on battery durability and create space for V2X considerations going forward.  

Policy wins were not limited to California. In New York, another state where VGIC continues to ramp up our engagement, the New York Public Utilities Commission (PUC) approved a managed charging program that authorized $98 million in VGI-related funding across six utilities through 2025. And I would be remiss not to highlight that VGI innovation continues to gain momentum at the federal level, with the Department of Energy launching a Vehicle-to-Everything MOU and an EV Grid Assist program. VGIC is also pleased to participate in the National Renewable Energy Lab’s EVs@Scale Lab Consortium and looks forward to supporting this innovative effort across the national laboratories to establish a secure and scalable infrastructure to support the rapid growth of EVs across the country.  

We could not have achieved these milestones without the support of our members. We are pleased that our membership has more than doubled since our establishment in 2020, and now totals 25 innovative and engaged members. In a fitting culmination to a very active and impactful year, we also were excited  to have had the opportunity to meet as an organization at our Annual Member Meeting in Berkeley, California, last month, where we aligned on the major focus areas – notably compensation mechanisms and interconnection policy – in 2023. 

At that meeting, we were treated to the insights of thought leaders who are supporting the advancement of our industry. 

Aloke Gupta, Supervisor, Demand Response, CPUC Energy Division, Zeryai Hagos, Deputy Director, Office of Markets and Innovation, NY DPS, and Stephanie Palmer, Air Resource Engineer, California Air Resource Board, participated in “Weathering the Storm: Lessons from Year 1 and Future Role of VGI in Grid Reliability.” We also heard from CPUC Commissioner Cliff Rechtschaffen and Siva Gunda, California Energy Commission Commissioner, on “Role of VGI in Accelerated Transportation Electrification.”  What fantastic discussions!  

In sum: What a year! I hope you share my enthusiasm for what was accomplished to advance the role of electric vehicles and smart EV charging and discharging through policy development, education, outreach, and research. And I have no doubt that the best is yet to come. On behalf of the entire VGIC team, we look forward to building upon our efforts and impact delivered to-date, accelerating our country’s progress toward achieving a world-class, decarbonized transportation and energy sector with EVs leading the way.   

---

To learn more about VGIC and the role it plays in unlocking the value of EVs and smart EV charging as a strategic grid resource,

The hidden barrier to V2X: How states and utilities can open the floodgates for bidirectional EV charging

The hidden barrier to V2X: How states and utilities can open the floodgates for bidirectional EV charging

By Ed Burgess and Dan Bowerson

Ed Burgess is senior policy director at the Vehicle-Grid Integration Council and Dan Bowerson is senior director, energy & environment at Alliance for Automotive Innovation. 

The energy world is abuzz with solutions to leverage electric vehicles to provide backup power and vehicle-to-grid services, rather than calling on costly emergency resources (including polluting backup generators typically banned from running), urging customers to limit the use of air conditioning, or triggering rolling blackouts. Nearly 3 million EVs have been sold across the U.S., a growing number of which support vehicle-to-everything, or V2X, bidirectional charging capability. 

The new Ford F-150 Lightning Electric, in partnership with Sunrun, upcoming vehicles from General Motors, in partnership with SunPower, the Nissan LEAF, in partnership with Fermata Energy, and several school bus manufacturers, in collaboration with Nuvve, offer V2X capabilities. With California planning to ban the sale of new gas-powered passenger vehicles, and other states expected to follow suit, the potential for V2X bidirectional charging systems to contribute to grid reliability is surging.

The Vehicle-Grid Integration Council, or VGIC, a group representing automakers and EV charging companies, estimates that by the end of 2022, the Nissan LEAF and Ford F-150 Lightning vehicles on California’s roads could represent as much as 500 MW of technical vehicle-to-grid or “V2G” export capability — the equivalent of ten 50 MW gas-fired peaker plants. Nationwide, this capability is likely to reach around 1 GW. These figures will only grow as greater numbers of EVs hit the roads in the coming years.  

To tap into this latent energy storage capacity, utilities should offer accessible programs and rates that compensate drivers and fleet owners for providing V2X grid services. Some customers are eager to participate in existing offerings, like the Emergency Load Reduction Program in California, which pays customers for V2G exports during extreme grid conditions. Pacific Gas & Electric has launched a new pilot program to enroll 1,000 customers and pay them up to $5,175 for this capability. In Massachusetts, the Clean Peak Energy Standard creates a pathway for drivers to enroll their EV batteries through a third-party aggregator.

Establishing more V2X offerings is critical to support the grid, and these programs offer good templates for other utilities and states to follow. However, compensation mechanisms alone will not unlock the significant grid and customer benefits of V2X bidirectional charging systems. 

Drivers and fleet operators need to understand and initiate the appropriate process for installing and connecting their V2X charging systems. VGIC, with support from several Alliance for Automobile Innovation members, recently published recommendations for electric utilities and state officials to make this process simple. While commercially available V2X charging systems are relatively new, the underlying capabilities mimic common distributed energy resources. For example, V2X solutions that power a home or business during a blackout resemble small fossil fuel backup generators. Meanwhile, V2G school bus systems like these in San Diego behave similarly to other behind-the-meter energy storage systems. As a result, the appropriate processes to alert utilities about installation and, if needed, request interconnection, may fortunately already be in place for many customers.

Utilities and state officials must avoid reinventing the wheel by establishing entirely new and separate interconnection rules for V2X systems. Instead, they should clarify and, where needed, expand existing rules to include V2X backup power systems and exporting V2X systems. 

For drivers and fleet operators looking to support the grid through V2G exports, the interconnection process may take some time while utilities gain familiarity with V2X equipment. It is critical that utilities allow these customers to use their chargers in unidirectional “load-only” mode on an interim basis while they make their way through the interconnection queue. In other words, an electric school bus must still be able to charge up and drive its route while awaiting utility permission to export to the grid. Similar flexibility must be offered to drivers who use their vehicle for backup power today but might take advantage of future opportunities to receive V2G export compensation. 

Achieving wide-scale V2X holds great promise for the grid and drivers alike, but realizing these benefits depends on utilities and policymakers working to standardize and streamline the connection or interconnection of V2X systems by following the necessary, well-established and generally easy-to-implement best practices. 

---

To learn more about VGIC and the role it plays in unlocking the value of EVs and smart EV charging as a strategic grid resource,

California’s Submetering Decision: A Game-Changer for VGI Solutions

California’s Submetering Decision: A Game-Changer for VGI Solutions

By Zach Woogen

In a decision that sets a new model for unlocking managed charging and “Vehicle to Everything” (V2X) bidirectional charging, California regulators last week approved a submetering protocol that allows customers to take advantage of EV-specific rates without needing to install a separate utility meter.  

This innovative approach uses networked EV chargers to measure electricity consumption, which has broad, significant implications for managed charging and other VGI use cases. Additionally, the decision establishes critical next steps for unlocking the use of vehicle telematics for submetering. 

The Vehicle Grid Integration Council (VGIC) celebrates the decision and commends the California Public Utilities Commission for its leadership. This critical development positions California to see increased participation in EV charging rates and demand response programs that support the grid. The decision also alleviates a crucial barrier to V2X adoption, unlocking new value for drivers, fleet operators, and the grid. 

Boosting Participation in EV-Specific Rates and Demand Response Programs 

California utilities offer residential and commercial EV-specific rates with low off-peak charging costs that reduce EV fueling costs. To date, participation in this compelling cost-saving opportunity has been limited due to the requirement that customers must install a separate utility meter to measure EV charging, which adds costs, delays deployment, and may be unfeasible due to physical space constraints. The new submetering approach alleviates this barrier by allowing a low-cost alternative to installing a new utility meter. 

Alleviating Barriers to V2X Backup Power and Customer Bill Management 

V2X bidirectional charging systems can discharge from the EV battery to serve a customer’s onsite load, or export to the grid without compromising mobility needs. Without submetering, customers seeking to use V2X backup power systems (e.g., Ford Motor Company’s Intelligent Backup Power) must forego the opportunity to participate in effective EV-specific rates. Similarly, customers seeking to use V2X bidirectional charging systems to meet site load, for example, to manage demand chargers would be unable to do so if they wish to take service under a compelling, separately metered EV-specific rate.

The new submetering decision no longer puts dynamic EV-specific rates at odds with V2X bidirectional charging. Instead, it supports customers looking to leverage both strategies and, in turn, unlocks compelling value for customers and the grid at large. This is a game-changer for V2X bidirectional charging solutions that provide backup power during grid outages, reduce electricity bills by managing site load, strengthen grid reliability by exporting to the grid, and support the integration of renewable energy. 

Submetering in New York and VGIC Presenting at Upcoming Workshop 

Meanwhile, regulators in New York recently approved new managed charging programs for residential customers, and stakeholders will convene on August 18th to explore submetering and other technical considerations to promote VGI. VGIC will be a workshop presenter and share strategies to implement submetering and implications for V2X bidirectional charging. Following the workshop, utilities will soon file implementation plans for each managed charging program, which will represent a significant step forward for New York’s VGI market. 

Steppingstone to the Use of Vehicle Telematics for Submetering 

The California and New York orders represent strong foundations for facilitating the use of vehicle telematics to measure EV charging. Both states are poised to consider a process over the next 1 to 2 years to incorporate vehicle telematics into submetering approaches. Using vehicle telematics to submeter EV charging is done today in many utility programs to support customers who charge from a standard 120V wall outlet, or “Level 1” charger, those who do not have a networked Level 2 charger, and those who prefer to measure charging via the vehicle rather than a charger,  such as some commercial fleets. 

---

We are excited by the policy innovation discussions underway in California and New York, and we will continue to engage in advancing these scopes of work to help support the transition to a decarbonized transportation and electric sector.

The VGIC is committed to advancing the role of electric vehicles and smart EV charging and discharging through policy development, education, outreach, and research.

To learn more about VGIC and the role it plays in unlocking the value of EVs and smart EV charging as a strategic grid resource,

EVs and Bidirectional Charging Come of Age with Federal “Vehicle to Everything” Plan

EVs and Bidirectional Charging Come of Age with Federal “Vehicle to Everything” Plan

By Zach Woogen

"V2X” is moving from concept to reality. The U.S. Department of Energy (DOE) has announced a new initiative to knit bidirectional electric vehicle (EV) charging more tightly into energy grid infrastructure. “Vehicle to Everything” (V2X) strategies aim to leverage the growing number of EVs — and corresponding growth of battery energy capacity — to support the healthy functioning of the energy grid, while also reducing ownership costs for drivers and fleets. Battery capacity growth is likely to continue to expand rapidly as larger vehicles, such as school buses and other medium- and heavy-duty vehicles, transition to run on battery electric power.

Vehicle to Everything (V2X) Initiative

The new V2X initiative marks a turning point and critical next step in the necessary data collection and stakeholder convening needed to elevate V2X use cases at the federal level. V2X deployments across the nation have been ramping over the past several years, and the DOE V2X initiative will play an integral role of capturing lessons learned from these early deployments and charting a path forward. The Vehicle-Grid Integration Council (VGIC) stands ready to support the wide array of stakeholders collaborating to successfully scale V2X strategies across the U.S.

EV Charging and Discharging Benefits

VGIC believes smart EV charging and discharging can deliver a wealth of services that not only decarbonize grid operations, but also provide new value streams to EV drivers and vehicle fleet owners. These include load management, customer electric bill management, demand-response participation, and back-up power supply to homes and businesses.

V2X Memorandum of Understanding

DOE’s initiative brings together actors from across the mobility ecosystem — DOE staff, national labs, state and local governments, utilities, and technology providers — to evaluate the technical and economic feasibility of V2X strategies, including identifying V2X activities and the barriers inhibiting more rapid V2X adoption. The V2X Memorandum of Understanding will be a positive step forward for the industry by further validating and elevating awareness of the V2X value proposition. Congratulations to VGIC Leadership Circle members Ford Motor Co., General Motors, Nissan Group of North America, and Nuvve Holding Corp., as well as VGIC member company Fermata Energy, for their engagement and their support of this initiative. We are pleased to partner with these leading organizations, and others, to promote the role of EVs as strategic grid resources.

Vehicle Grid Integration Strategies

Implementing vehicle-grid integration (VGI) strategies at scale has gained added momentum via the federal Bipartisan Infrastructure Law (BIL) passed last November. The $5 billion National Electric Vehicle Infrastructure Formula Program, $2.5 billion Charging and Fueling Infrastructure Program, $5 billion Clean School Bus Program, and $3 billion Smart Grid Investment Matching Grant Program provide a package of support for community charging sites, aggregating and integrating EV batteries as grid assets, and facilitating broader deployment of VGI technologies.

The VGIC team, along with Leadership Circle members Ford and Nuvve, recently held an in-depth discussion on VGI support mechanisms in the BIL, which can be accessed here.

VGIC is committed to advancing the role of electric vehicles and smart EV charging and discharging through policy development, education, outreach, and research.

To learn more about VGIC and the role it plays in unlocking the value of EVs and smart EV charging as a strategic grid resource,

EVs and EV Chargers as Strategic Grid Resources: Building the Vision at VGIC

EVs and EV Chargers as Strategic Grid Resources: Building the Vision at VGIC

By Edward Burgess

The Vehicle-Grid Integration Council is closing the books on a truly remarkable year and is gearing up for an even more ambitious 2022. On the heels of hosting our first in-person meeting since our founding in early 2020, I wanted to relay some reflections on the crucial industry progress our organization has helped deliver over the past 12 months and what is top of mind for our members heading into the new year.

Before we dive in, I’d like to extend a big thank you to CPUC Interconnection Program and Project Supervisor Justin Regnier, CEC Electric Generation System Program Specialist Ben Wender, and CAISO Lead Policy Developer Anja Gilbert, who traveled to Berkeley and spent time educating our members on how their agencies view the VGI products and services market evolving, and how their agencies are moving forward with rulemaking and market design in this dynamic space.

Reflections from the Past Year of Market Building

The VGIC team has helped our members navigate markets across the country in pursuit of a more resilient grid and fair compensation mechanisms for EV resources. A few notable policy wins include:

• Secured approval of a novel EV/VGI Aggregation program in California (through the Emergency Load Reduction Program), which offers aggregators a minimum of 30 hours dispatch at $2 per kWh for V1G and/or V2G aggregations with broad customer and device eligibility.

• Solidified the rules for streamlined V2G interconnection in California under Rule 21, including both V2G-DC and V2G-AC pathways.

• Contributed to the release of $20 million in CEC funding for V2B backup power solutions and proposals for $29 million in CPUC-authorized utility funding for VGI pilots.

• Secured favorable rules for V1G and V2G participation in Massachusetts’ Clean Peak Standard program.

• Successfully included V2G export compensation in the scope of the next phase of PG&E’s dynamic Commercial EV rate case.

• Served as lead advocate for VGI considerations within the CARB’s Advanced Clean Cars 2 Regulation.

• Raised the profile of EV Automated Load Management (ALM) as a crucial tool for helping to stretch investments in EV charging infrastructure even further.

What’s in Store for VGIC

In the coming year, VGIC will continue to expand our state-level advocacy and market monitoring work to several additional states beyond California, New York, and Massachusetts, alongside a focus on the implementation of the recently passed bipartisan infrastructure package and its outlay of $7.5 billion for charging stations and $5 billion for electric school buses.

In today’s rapidly evolving marketplace, what policy trends are top of mind for our members?

• How will the infrastructure bill reshape the Transportation Electrification program landscape, and what role will VGI have to play in supporting these initiatives?

• Continuing progress on updating DER compensation and market design;

• Advancing utility VGI programs and real-time pricing;

• Developing V2G interconnection pathways and consistency across multiple jurisdictions; and

• Accelerating incentives and deployment of V2G for school buses and other types of EV fleets.

Clearly, we have a lot of work ahead of us! As a membership-based trade association, VGIC is committed to advancing the role of electric vehicles and smart EV charging and discharging through policy development, education, outreach, and research. The strength of our growing member network is our greatest asset as we work together to support the transition to a decarbonized transportation and electric sector.

To learn more about VGIC and the role it plays in unlocking the value of EVs and smart EV charging as a strategic grid resource,

Vehicle-Grid Integration: Unlocking EV Value

Vehicle-Grid Integration: Unlocking EV Value

Originally published in ACT News

By Melanie Davidson and Edward Burgess

The vehicle electrification train has left the station, or in this case, the garage. California alone has set a goal to reach 1.5 million electric vehicles by 2025 and 5 million by 2030 – and 12 additional states are following that lead with similar ambitions. Electric vehicle (EV) adoption, from light-duty passenger cars to heavy-duty trucks, can be a major benefit to owners and fleets by reducing vehicle fueling costs, creating new revenue streams by providing services to the electric grid, and offering critical energy resiliency in a world of increasing climate-related natural disasters.

These optional benefits can be realized through a suite of technologies and services known as vehicle-grid integration, or VGI. As fleet owners electrify their vehicles, it will be essential to consider which VGI options may be a good fit and could enhance the overall value proposition of EVs. While many of these benefits are inaccessible today due to regulatory and interconnection barriers, they may soon become available through advocacy and action.

Energy Storage on Wheels

Simply put, an EV is a car body strapped to a large battery – or energy storage on wheels. There are nearly 2 million EVs currently deployed on U.S. roads, and those numbers are expected to increase rapidly in the coming years. When not busy conveying people and goods, millions of scattered EV batteries on wheels can provide valued services to America’s most complex and relied-upon machine: the electric grid.

In aggregate, these millions of “distributed energy resources” can provide grid management services that grid operators and electric utilities will pay for, such as helping to smooth out energy demand, providing power to the grid, and regulating voltage and frequency. Studies have shown that the value of the grid services EVs can provide range from $1.6 billion to more than $15 billion by 2025 in California alone, and this value can scale quickly depending on the services they can provide.

Benefits for EV Fleets

VGI encompasses the suite of ways EVs can provide services to the grid and be compensated for those services. For an EV fleet operator, unmanaged charging can lead to significant costs, eroding many of the financial and sustainability benefits of EV adoption. However, intelligent and managed charging and discharging represents a massive opportunity to save on fuel costs, and even capture new revenue streams.

Saving Money with Managed Charging

Managed charging, often referred to as V1G, is as simple as it sounds – strategically managing when you charge an electric vehicle. In some states, the price of electricity fluctuates throughout the day, making charging more or less expensive depending on the hour. By synchronizing the charging of your fleet or vehicle to times of the day when electricity prices are low, managed charging enables you to save money on your power bill. This technique can also be used to reduce the size and cost of new charging equipment and related infrastructure required to serve a fleet. With the right V1G software solutions and utility incentives, EV owners and operators can achieve significant charging cost savings.

Examples of common utility rates and programs supporting V1G:

• Time of Use Rate: A rate plan in which electricity prices vary predictably according to the time of day, day of the week, or season, allowing EVs to charge when rates are low.

• Off-Peak Charging Rebates: Incentives for EV owners to charge during off-peak times.

• Demand Response Programs: Incentives to reduce EV charging during periods of high load demand or stress on the grid, such as a summer heat wave.

• Real-Time Pricing, VGI Rates, and other dynamic rate structures: Electric rates that vary dynamically hour by hour, enabling cost savings for EVs and fleet operators that charge during low-cost periods.

• Automated Load Management System (ALM): Software algorithms used to balance energy demand from multiple chargers at one location, allowing more chargers to be located at a single site and reducing the need for expensive electrical equipment upgrades.

Creating New Revenue Streams with V2G

While V1G can reduce charging costs by intelligently managing one-way charging, vehicle-to-grid, or V2G, enables EVs to make additional revenue by providing services to the grid. V1G is a unidirectional relationship between the vehicle and the grid — the grid charges the car, and the car passively receives that energy. V2G is a bidirectional relationship — not only can the car receive power from the grid, but it can also feed power back to the grid and provide other services the grid may require — and get paid for these services.

V2G is still in its early days and has faced some regulatory barriers that have limited its deployment at scale. However, that is rapidly changing as many new vehicle models are coming with built-in V2G capabilities. V2G is currently being evaluated and adopted by utilities and grid regulators in many states, including the California Public Utilities Commission. Numerous demonstration pilots have shown the efficacy of V2G technologies, and we expect there to be a rapid growth in V2G use over the coming years.

Examples of how EVs can unlock the value of V2G to create new revenue streams:

• Energy Arbitrage: Purchasing energy when electricity is inexpensive and selling it back to the grid when prices rise.

• Capacity and Demand Response: Discharging power to the grid when it is most needed.

• Ancillary Services: Responding to a wide range of utility or grid operator needs, such as frequency regulation and voltage control. These additional services could provide even more value streams to reduce total cost of EV ownership.

Adapted from Eric Cutter 2019 California Framework for Grid Value of Vehicle Grid Integration (VGI)

Providing Emergency Backup Power with V2B

EVs can also utilize two-way charging and discharging capabilities to send energy to a building or home. In a grid outage, the energy stored in EV batteries can serve as a generator, providing safe, emission-free emergency backup power. During the Texas grid crisis, ambitious DIY EV owners used their vehicle batteries to power their lights, coffee makers, and space heaters. Although some of these were homespun projects, backup power capability is already available in some hybrid vehicle models and may become a standard feature for many EVs and charging equipment in the near future.

Even when the grid is functioning normally, V2B can drive value for businesses and homes when properly integrated into building design. EVs can act like stationary energy storage devices, reducing building peak demand and lowering the building’s electrical bill. A demonstration of V2B technology by Fermata Energy in Virginia saved a building nearly $800 over the course of five months, simply by offsetting a 15-minute peak period daily with one Nissan Leaf.

Unlocking VGI Benefits Requires Advocacy and Education

VGI is underway across the country with a broad range of use cases and technologies, from Vermont to Kentucky and, of course, California. However, key decisions about electric utility rates, EV programs and incentives, and rules for connecting to the grid to provide services are often dictated by state regulatory commissions and other policymakers.

“Ensuring that the full suite of VGI options and benefits is available to EV fleet owners requires a dedicated industry voice to be at the table with these policymakers as EV infrastructure plans are developed,” according to Marc Monbouquette, regulatory affairs manager at Enel X North America.

Monbouquette is also board chair of the Vehicle-Grid Integration Council (VGIC), a national trade association that Enel X North America helped to spool up in 2019. The VGIC is focused on ensuring that policymakers support decisions that unlock the benefits of VGI to reduce the total cost of EV ownership and accelerate the adoption of electric vehicles.

“VGI has the potential to help fleet owners save money, reduce electricity costs across the system, and support a sustainable and affordable transportation transition. We have the technology to do it. Right now, we need to continue to educate policy makers and advocate for these technologies to be deployed,” added Monbouquette.

To learn more about VGI technologies, case studies, and policy recommendations that can help save money for fleet owners, be sure to tune into our webinar, Unlocking Value for EV Fleets with VGI, on April 21.