Government policy and regulations shaping the future of v2x

A study by SmartEN & DNV revealed the varied landscape of government policies and regulations in Europe regarding Vehicle-to-Everything (V2X) technologies. V2X, a revolutionary concept in the automotive and energy sectors, refers to the communication of a vehicle with any entity that may affect or be affected by the vehicle. This includes vehicle-to-grid (V2G), vehicle-to-home (V2H), and vehicle-to-building (V2B) technologies.
The study highlights that while the deployment of V2X is encouraged to varying degrees across Europe, there are stark differences in the level of specific targets, incentives, and subsidies provided by different countries. Germany and Great Britain are at the forefront, with clear V2X strategies in place. Germany’s charging infrastructure masterplan and support for research and development in V2X, along with Britain’s commitment to the Vehicle-to-X Innovation Programme, set them apart as leaders in the field.

However, the study also notes that in most European countries, specific V2X policies are still lacking. Most nations are engaging in pilot projects, which, while not official government policy, often receive government innovation funding. These projects could pave the way for more formal policy rollouts in the future.

One key aspect examined is the issue of double taxation or levies for V2G. Countries like Spain and Sweden have eliminated double taxation in their tax regimes, whereas it remains an issue in others, such as Denmark and Great Britain. The study emphasises the ongoing discussions to address this through the revision of the EU’s Energy Taxation Directive, which would differentiate energy transferred for storage from end-use and prevent double taxation of stored electricity.

Another significant finding is the consideration of V2G in resource adequacy assessments. The UK’s Energy System Operator (ESO) and France’s Transmission System Operator (RTE) are among those who factor in V2G in their resource adequacy scenarios. This inclusion indicates a strategic focus on incentivising and developing these technologies.

The commercialisation of V2X technologies also depends heavily on electricity prices and network tariffs. Time-of-use (TOU) and dynamic tariffs are essential for encouraging consumers to shift their electricity usage to off-peak periods. However, the report finds that while TOU tariffs are available in most assessed countries, the uptake of these tariffs is relatively low. Additionally, consumer protection mechanisms, such as price caps, while ensuring affordability, tend to obscure the true price signals necessary for the optimal operation of dynamic pricing, thus diluting the economic incentives for flexibility.

The participation of V2G in wholesale energy and balancing markets is another area of interest. France and Belgium, with their independent aggregation frameworks, are leading the way for V2G and other Distributed Energy Resources (DERs) to participate in these markets. However, participation remains predominantly within pilot projects due to market rules and metering requirements.

In terms of smart meter capabilities and adoption, Denmark, Italy, Spain, Norway, and Sweden are notable for their near 100% rollout of smart meters, though many of these meters are older models lacking the newest functionalities. Smart meters are vital for providing consumers with near real-time information on energy use and access to a broader range of tariffs.

Lastly, the study touches on the role of local flexibility markets and network tariffs in facilitating V2G. Great Britain, France, and The Netherlands are acknowledged for their market-based procurement of flexibility that V2G can access. However, participation in these markets from V2G is still limited due to the limited installed base of V2G chargers.

In conclusion, the study underscores the need for more cohesive and supportive policies across Europe to fully harness the potential of V2X technologies. While there are promising developments in some countries, a Europe-wide effort is essential to ensure that V2X technologies are effectively integrated into the energy system, thereby enhancing grid reliability and driving forward the transition to a more sustainable and efficient energy future.

Source: Assessment of the Regulatory Framework of Bidirectional EV Charging in Europe | SmartEN & DNV

Source: Assessment of the Regulatory Framework of Bidirectional EV Charging in Europe | SmartEN & DNV
Related news

Germany's decline slows EU EV market growth in first half of 2024

The European Union's electric vehicle market saw modest growth in the first half of 2024, driven…

read more
Electric Vehicles
Published by: Editorial board | July 19, 2024

Electric vehicles now cheaper than combustion models in China

China has reached a significant milestone in the electric vehicle (EV) market: EVs are now cheaper…

read more
Electric Vehicles
Published by: Editorial board | July 18, 2024

Five countries lead Europe’s electric truck charging infrastructure

Europe is advancing with the electrification of Heavy Duty Vehicles (HDVs). Recent data from Gireve shows…

read more
EV Charging
Published by: Editorial board | July 17, 2024

China leads the charge in global EV adoption, surpassing US And EU

Over the last two decades, the global electric vehicle (EV) market has seen remarkable growth, with…

read more
Electric Vehicles
Published by: Editorial board | July 15, 2024