What is V2X and Why do Fleets Need to Know About it? Vehicle-to-Everything
By Emma Durham, Product Manager, Power
Electric vehicles (EVs) obviously receive energy to charge them. V2X (vehicle-to-everything) describes how an EV can also discharge and transmit that energy on, such as to the grid (V2G), the home (V2H), a building (V2B), or another load (V2L).
V2X adds the element of bi-directional charging to an electric vehicle, providing a range of storage and flexibility benefits.
V2X can be seen as an evolution of smart charging, where the charging time of a vehicle can be optimized to coincide with periods of surplus energy generation or lower grid demand, which enables cheaper and greener charging.
V2G for Renewable Energy Storage
As we electrify our society – across buildings, transport and industries – there will be a huge increase in demand for electricity. (Globally, McKinsey puts it at double by 2050 in its 2023 Power Outlook.)
Our reliance on renewables is growing to ensure electrification continues as needed to support our decarbonisation efforts. 50.9% of total UK generation were provided from renewables in Q1 2024.
Whilst the likes of solar and wind offer a sustainable solution to energy generation, they are intermittent due to their dependency on the weather, leading to periods of excess generation and periods of insufficient energy production. This can lead to an imbalance between supply and demand and can result in price volatility of energy throughout the day and year, and even negative electricity prices (67 hours in first half of 2024).
Energy storage solutions are required to take advantage of the supply from renewable sources. However, static storage can be expensive.
V2X effectively turns a vehicle into a battery on wheels. EVs can be stationary for long periods of time, providing energy storage capabilities from an asset that is already owned, maximising the utility of the vehicle beyond transportation.
What are the benefits of V2X to a fleet?
V2X introduces a new asset into the energy ecosystem which provides flexibility, benefits and opportunities to stakeholders in the ecosystem through multiple use-cases.
A fleet of V2X vehicles, when aggregated together, can form significant storage capability without the need to purchase additional assets. This can offer cost savings or the potential to generate additional revenues, which can reduce the total cost of ownership of the fleet.
For example, the V2X vehicle can be used to store energy from on-site solar generation plus energy drawn from the grid at a low-price time of day. The energy would then be discharged from the vehicle later to off-set energy consumption by buildings or to meet peaks in demand, supporting the grid and reducing CO2 emissions simultaneously.
In some cases, the vehicle could even act as a back-up power source during a power cut, providing resiliency to the business and avoiding the costly impact from a disruption to operations.
For grid operators, V2X provides flexibility at the location. Flexibility services are imperative for the grid as electrification (not just of vehicles) accelerates to reduce the need for expensive infrastructure upgrades.
Where are we with V2X adoption?
Whilst the term V2X has been known for several years, the market is still relatively nascent, with several trials ongoing to prove the technology and business case. There are some limitations within the market that are barriers to adoption and need to be tackled to enable mass adoption of V2X.
Hardware standards
CHAdeMO is the dominant charger and connector standard used for V2X, however most EVs being produced today use the CCS standard which does not support bidirectional charging currently.
The introduction of ISO-15118 and OCPP2.0 will not only provide standards for EV and charger communications but will enable CCS chargers and vehicles to support V2X, which should be seen in 2025. These standards are imperative to encourage interoperability between a range of vendors and future-proof this technology.
Vehicle availability
There are few (mainly passenger) vehicles on the market today that are V2X enabled, due partly to the limitations of CCS to support charging, but also the need for a bi-directional inverter to handle the flow of energy back from the vehicle. This adds complexity and cost, which manufacturers are reluctant to pass on to customers until there is a clearer market demand.
A wider range of V2X compatible vehicles is needed to suit the specific requirements of fleets, especially in the larger or specialised vehicle sector.
Vehicle warranties
Frequent charging and discharging cycles could potentially reduce battery health and therefore performance and lifespan. The impact of this is still being studied, although early insights show limited to no impact in comparison to unidirectional charging if managed correctly. Vehicle warranties today are often based on the battery cycles, which disincentivises the implementation of V2X.
DC chargers
For fleets, it’s important that cost-efficient DC V2X compatible chargers are developed. Vehicle duty cycles often limit the charging (and discharging) window of a vehicle, so high speed charge/discharge will be required for fleets to be able to participate in the market.
Software
V2G requires sophisticated software to manage interactions with the grid, including the ability to identify when it is profitable or necessary to discharge energy. Software will also provide a user interface for setting preferences, controlling charging times, and monitoring energy flows.
Public awareness and incentives
EVs are typically more expensive than their petrol or diesel counterparts, which is already a barrier to adoption. Purchasing a V2X enabled vehicle/ charger adds additional cost, which needs to be recouped. Raising awareness of the technology, coupled with ease of access with flexible services and the development of financial incentives will help drive adoption.
Ultimately, support for V2X needs to bring the vehicle TCO (total cost of ownership) to within parity with EVs.
V2X Collaborations and Innovations
V2X will play a part in the UK’s energy storage systems required to even out the usage of renewable energy, reduce our reliance on fossil fuels and reduce our carbon emissions to help fight climate change.
VEV is pleased to announce that we are participating in Innovate UK’s Global Business Innovation Programme V2X, USA. We are one of twelve members eager to establish new collaborations and knowledge-sharing opportunities to drive this innovation forward, together.
VEV has joined forces with 300 other companies (vehicle manufacturers, energy suppliers, network operators, hardware manufacturers, software providers and more) in the Charging Interface Initiative e.V. (CharIN) to support the development of standards, such as ISO15118, which is critical for the global implementation of V2X.
At VEV, our mission is to set businesses up for success in an electrified future . We believe V2X will be an important component of a future energy landscape to help us transition to net zero.
Fleets, specifically those charging at depots, have a great opportunity to capitalise on the new V2X technology to support their transition and lead the way to a greener, more efficient energy ecosystem.
The transition to an EV fleet requires an integrated and data-led approach to achieve a resilient solution, across vehicles, chargers and energy, and at VEV we are here to help plan, deliver and optimise this.