Utilities can double their revenue beyond core energy sales by adopting smart charging and electric vehicle to grid (V2G) services, according to a new study issued by ABI Research.
The study analyses the global battery electric vehicle market between 2018 and 2029.
According to the study:
- Global battery electric vehicle sales will grow from 1.3% to 16.4% during the forecast period.
- Electric vehicle installed base will reach over 100 million by 2029.
- The need to meet carbon emission reduction regulations mandating for the removal of traditional internal combustion engines is driving an increase in the installation of battery electric vehicle technology.
- The growth in EVs and the energy density of their batteries represent a considerable challenge to the energy industry.
- Energy demand due to EVs will increase from 1,121GWh in 2018 to 19,141GWh in 10 years. However, this will create opportunities for smart energy management, demand response, ancillary services and V2G technology companies.
- Typical consumers could save up to $272 on their annual energy bills by engaging in V2G arbitrage.
James Hodgson, Principal Analyst at ABI Research, said: “Simultaneously, automakers are seeking to alleviate consumer fears around EV range by rapidly increasing battery capacity, using new battery technologies, such as silicon-dominant anodes and solid-state designs, to increase cell-level energy density from 250 Watt-Hours per Kilogram (Wh/kg) to more than 500 Wh/kg within the next 10 years.
“While this represents a potential of almost $20 billion in energy sales by 2028, it also places extraordinary demands on national energy grids, with Transmission System Operators (TSOs) struggling to accommodate the onboarding of BEVs due to the limitations in infrastructure at the last mile, particularly with line constraints, transformer limitations, and the syncing of renewable energy supply with usage.”
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