The document discusses the benefits and challenges of vehicle-to-grid (V2G) technology, emphasizing its potential to integrate electric vehicles (EVs) with the power grid for services like demand response and grid stability. It highlights ongoing projects and key learnings from trials, such as the importance of customer engagement and the need for smart charging solutions. Additionally, it addresses regulatory changes from Ofgem and the push for smarter energy management to facilitate V2G adoption and its economic viability.

1. V2G Benefits
and Learnings
Marco Landi
Innovation Lead – V2G & EV
Charging
marco.landi@innovateuk.ukri.org

2. Innovate UK
Innovate UK drives productivity
and growth by supporting
businesses to realise the
potential of new technologies,
develop ideas and make them a
commercial success

3. What is Vehicle-to-Grid (V2G)?
Market
Services
Demand
Response
Spin/Non-
Spin
Reserves
Freq.
Regulation
Black Start
Resource
Adequacy
Trans.
Congest.
Relief
Voltage
Support
Trans.
Deferral
Dist.
Deferral
TOU Bill
Managem.
Demand
Reduction
Backup
Power
Bulk
Power
Services
Customer
Programs
Distribution
Services
Vehicle to Grid (V2G) includes all technologies
and systems that achieve a tighter integration of
EVs with the Power Grid:
§ EVs act as controllable loads, to smooth demand peaks
(also referred to as V1G – can include Smart Charging)
§ Bidirectional energy transfer means EVs can act as
distributed storage, providing energy back to the grid
§ EV drivers earn rewards in exchange for grid services

4. V2G reduces the need for grid reinforcements
£17 bn
costs by
2050
6 TWh
1800 TWh
[Source: Bloomberg New Energy Finance Electric Vehicles Outlook 2017]
Global electricity
consumption from EVs
5% of total in 2040
5 GW
to
18 GW
+ Additional peak
demand without
managed charging
[Source: National Grid Future Energy Scenarios 2017]

5. V2G reduces the need for grid reinforcements
Using EVs as controllable load allows to defer Power
System upgrades
§ Up to £8 bn cost savings
Value multiplies if EVs act as flexibility source

6. EVs becoming integral part of the UK electricity ecosystem
From a vertically integrated Power System:
§ Demand easily predictable
§ Electricity flow from Power Stations to electricity
consumers
§ Centralized control
To a Smart Grid
§ All elements are connected and able to
interact with each other
§ User can provide energy to the grid
§ Generation, Transmission, Distribution and
Energy Usage & Storage are optimized across
all actors

7. V2G involves a complex landscape of stakeholders

8. iUK V2G programme: a world’s first
§ Projects on: onboard charger development, V2G in on-street
applications, gamification for V2G
§ Projects on: V2G business models, blockchain for V2G, V2X
analytics platform, V2H developments
£46mwhole
projects value

9. iUK V2G programme: a world’s first

10. Creating a central resource for V2G: V2G hub
www.v2g-hub.com

11. Key Learnings: Convincing customers is still a challenge
The V2G trials are running on a commercial basis:
participants are effectively customers
§ Private customers want to understand the
technology, and reassurances on availability,
degradation and potential costs/revenues
§ Fleet customers are more focused on impacts on
their operation, and solid business case supporting
the V2G investment

12. Key Learnings: make the customer proposition easy
Hands-on Hands-off
§ Direct customer reward
o Energy and service payments are
treated separately
o User has full visibility
§ All inclusive monthly payment
o Easy to understand bundle
o EV lease agreement requires plug-
in for min amount of time
§ “Never pay for mile driven ever
again”
o Energy and service payments are
aggregated
o Limited user intervention needed

13. Key Learnings: Smart + Smart = …less Smart?
[Icons from
flaticon.com]
§ Today is common to have more than one “smart energy”
device in the same environment
§ Each one of them seeks to individually optimise energy
usage/consumption/generation
§ Lack of coordination means that a global optimisation is
difficult to achieve – even among devices of the same
manufacturer

14. Key Learnings: V2G business case works, but not for every
type of user
§ A key parameter is the plug- in rate: increasing it from
28% to 75%, V2G revenues quadruple
Sources:
o Cenex, “Understanding the true value of V2G”, https://www.cenex.co.uk/energy/vehicle-to-grid/
o Element Energy analysis, V2G Britain project

15. Key Learnings: not all services or whole-system benefits are
accessible
§ The distribution network is the area of the grid that will be under more stress, so DSO services can have best
potential value and fit for V2G. However:
o DNO to DSO transition ongoing - service pricing not yet defined
o Currently few DSO areas are heavily congested – difficult to build tomorrow’s offering on today’s data
§ Whole-system analysis suggests V2G-related savings worth £3.5bn/yr by 2040 [Source: Imperial college/OVO, “blueprint for a post carbon
society”]
o Some of the most tangible advantages are maximisation of renewables utilization
o Evident whole system benefits - but not yet clear who will benefit from them and how to quantify such benefits
[Icons from
flaticon.com]

16. Key Learnings: HW supply and costs still a constraint
Source: Element Energy analysis, V2G Britain project
§ Costs based on 7kW charger
§ Learning rates based on proxy tech. (high -11% ; low – 15%)
§ Need to annualise costs over long life
§ Costs include HW, aggregation and battery degradation costs
§ Cycle life degradation assuming 4500kWh/year throughput
§ High revenues estimated in high-congestion DSO areas

17. Customer interest is limited by V2G vehicles available
§ Currently the main passenger
vehicle supporting V2G is the
Nissan Leaf
§ Not all customers – potentially
interested in V2G – wish to own
this single model of car
§ With 15118-enabled CCS EV
coming to market by 2025, the
consumer choice will be much
broader

18. Connection process is often cumbersome and long
§ The connection process is still
too long and complicated for
V2G installation at scale
§ Frequently the cost of the
installation is not known
before a site survey, making
building a business model to
pitch to customer extremely
difficult

19. New TCR from OFGEM impacts grid charges and V2G
OFGEM recently published a review on how network
charges are levied (https://www.ofgem.gov.uk/publications-and-
updates/targeted-charging-review-decision-and-impact-assessment )
§ Decision has an impact on V2G operations, particularly the ones relying
on reduction of household consumptions
§ A longer-term Access and forward-looking charges review is intended
to address the network flexibility and its operation

20. V2G developments pace is picking up

21. V2G remains quite a ‘hot’ topic

22. Advancing trends: Smart Charging
Smart Charging is a system of technologies that
schedule charging when more convenient for
users and more sustainable for the power grid
§ Impact of unmanaged EV charging on the grid is unsustainable
§ Many countries/states are encouraging and/or mandating
Smart Charging – in the UK a two-stage plan has recently been
launched
§ If implemented correctly, Smart Charging can be used as a
vehicle for cheaper, more convenient and with value-add
charging for EV manufacturers’ customers
§ At present efforts are driven mainly from energy industry, with
limited understanding of EV on-board systems and potentially
detracting from the customer experience

23. Advancing trends: Smart Charging can make V2G easier
Smart Charging can represent a
powerful vehicle to change users’
behaviours and make them more
receptive to V2G:
§ Smart Charging encourages positive plug-in
behaviours: plug the EV as soon as you get
the chance, rather than plugging in only
when needed
§ V2G applications will benefit from the shift in
customers attitude towards charging – users
already familiar with some external party
taking care of the charging process for them

24. Advancing trends : Advanced grid services raise V2G value
Current V2G-provided DSO services are at an embryonic stage:
§ Most of V2G services still focus on ISO Frequency regulation or behind-
the-meter services
§ DSO services are mainly focused on congestion management
However, EV batteries can play a key role in supporting the distribution
grid in a multitude of ways:
§ Provision of Power Quality compensation
§ Phase imbalance compensation
§ Reactive power compensation
§ Voltage control

25. DNOs have limited visibility of their own distribution network
§ Data is often not real time
§ In cases where there are no smart meters, they rely on customer
involvement to signal an outage/issue has arisen
§ Real time monitoring often limited to substations
§ “Mapping of the grid” is an expensive task, requiring dedicated
workforce
EVs are a dynamic and mobile load, that are constantly
monitored in a Smart Charging or V2G framework:
§ Can be used to report key grid measurements
§ Measurements can be integrated to build distribution network
maps
§ Maps can provide dynamic information on: - weak areas
requiring intervention; - arising issues; - opportunities for
reinforcements or application of local load management
Advancing trends : Advanced grid services raise V2G value

26. DNOs have limited visibility of their own distribution network
§ Data is often not real time
§ In cases where there are no smart meters, they rely on customer
involvement to signal an outage/issue has arisen
§ Real time monitoring often limited to substations
§ “Mapping of the grid” is an expensive task, requiring dedicated
workforce
EVs are a dynamic and mobile load, that are constantly
monitored in a Smart Charging or V2G framework:
§ Can be used to report key grid measurements
§ Measurements can be integrated to build distribution network
maps
§ Maps can provide dynamic information on: - weak areas
requiring intervention; - arising issues; - opportunities for
reinforcements or application of local load management
Innovation programme: “Beyond Off Street” Smart Meter EV
Charging Trial
New, Additional funding available to support installation of ~100 public EV
chargepoints in your Local Authority
§ Competition to design and trial a new type of EV chargepoint device for smart charging using the secure smart metering system
§ For charging outside the home on residential streets, for workplace charging. Other locations considered.
§ Several consortia of manufacturers and energy suppliers are looking for host locations for trials of these devices
§ Smart Charging enables drivers without their own off-street parking to automatically charge at the cheapest, lowest carbon point,
rather than over the expensive evening peak.
§ Local Authorities will be able to increase the availability of charging infrastructure using this £5m fund
§ BEIS will procure up to two projects, each with ~100 chargepoints on residential streets, 1yr trial from Q2 2021
§ Local Authorities can still access the On-street Residential Chargepoint Scheme (ORCS)
§ Suppliers will provide full planned maintenance and support including help desk and reactive maintenance and repair
§ Local Authorities can let these organisations know that they may be interested in hosting a trial by emailing
smartmeterspmo@beis.gov.uk with “Beyond Off Street” in the subject line.
§ Further information available at the Beyond Off Street programme web page:
https://www.gov.uk/government/publications/smart-meter-enabled-electric-vehicle-ev-charging-trial-beyond-off-street

27. Conclusions
§ Interest in V2G is growing – from OEMs to energy providers, V2G popularity is growing, fueled by government
programmes, private initiative and customer attention to the topic
§ There is still some issues to resolve – from interconnections to supportive regulations, from availability of
more V2G vehicles to more customer friendly products/propositions
§ Key learnings – albeit most projects are still ongoing, some core takeaways are already available:
§ Finding the right customers – not all types of users are suitable for V2G. Clear proposition work best
§ Targeting the right services – Propositions need to be tailored to specific context and area constraints
§ Reducing HW costs – HW costs are still high, but falling rapidly
§ Realising whole-system benefit – but not yet clear who will benefit and how to quantify such benefits
§ Working together – Smart energy technologies still not ready for seamless operation across devices
§ Syncing effort – while different countries and applications might have specific requirements, most of issues are
common: building a community around V2G development is crucial (starting with a common database –
www.v2g-hub.com )

28. Thank you

29. Vehicle-to-Grid – 7 May
Ofgem

30. Provide an overview of
(i) Ofgem and our work to support decarbonisation at lowest costs.
(ii) Our Targeted Charging Review
• What is changing?
• The timing of these changes?
(iii)Our Access Significant Code Review
(iv)The wider activities that Ofgem is completing to support decarbonisation at lowest cost.
Objectives of this session

31. Ofgem forward work programme

32. Our key objectives
We are the independent energy regulator for GB.
Our principal objective is to protect the interests
of existing and future energy consumers.
Our work is focuses on three key strategic
objectives for consumers:
• Enabling competition and innovation which
drive down prices and result in new products
and services
• Protecting consumers, especially the
vulnerable, stamping out sharp practice and
ensuring fair treatment
• Decarbonising to deliver a net zero economy at
the lowest cost to consumers

33. Our future-focused reforms
Decarbonisation
Technological
Change
Changes in the
generation mix
• Intermittent
• Distributed
• Less flexible
More storage and
demand-side
response
New large and
uncertain loads
• Heating
• Electric vehicles
Smart technologies
Right incentives
on market
participants
Right incentives
on network
companies
Right framework
for system
operators
Right approach
to network
signals and cost
recovery
Digitisation and
smart systems
Drivers Impact on the energy
system
Impact on
Regulation
Decentralisation
Ofgem reforms
Future Charging and
Access (Access, TCR
and Balancing reform)
RIIO2 price controls
System Operation
(SO) reforms
Retail and wholesale
market reforms
Key enablers: Smart
meter rollout and Half
Hourly Settlement
We have a suite of reforms to deliver our key strategic objectives. The development of smarter, more
flexible energy system is central to our work.

34. The development of a smarter, more flexible energy
Flexibility can help manage network constraints and reduce the need for potentially expensive
network infrastructure, reducing costs for consumers and enabling quicker/cheaper connections.
We want flexibility providers to realise the value that they can provide to the energy system in
different markets. To do this, arrangements must appropriately signal the costs/benefits of using the
network at different times and locations.
Flexibility generally means the ability of users of the electricity system to vary their generation or
demand in response to signals at different times.
Trading of access rights/curtailment
6
Access rights and forward-looking network charges/credits
Embedded benefits
Residual charge avoidance
Network price signal
flexibility
Procurement of network management services
Contracted flexibility
TCR

35. Targeted Charging Review

36. Forward looking (locational)
component (~£0.5B)
Residual component
(~£2.1B)
Local charges (generator
only)
Locational model Top up to allowed revenue
Generation 16% Demand 84% ,
1% Demand 99%
Background: Components of network and balancing charges
Connection
(~£0.2B)
Code defined charge
Connection
(~£0.2B)
Code defined charge
Forward looking (time of use)
component (~£4B)
Fixed charge
Time of use
charge
Locational charges
(large users only)
Residual component
(~£1.4B)
Top up to allowed revenue
Balancing
Services Use of
System Charge
(BSUOS)
Generation
50%
Demand
50%,
Use of system charges
(~£1.3B)
Transmission Network Use of System Charge (TNUoS)
Distribution Use of System Charge (DUoS)
Generation

37. Targeted Charging Review: Summary of the reforms
Charges in scope Decision and implementation
Cost recovery charges that
cannot be charged in a way
that sends a useful signal to
network users
• Transmission residual charges:
• Generation residual
• Demand residual
• Distribution residual charges
• BSUOS charges
• Approx. £5 Billion/year
Out of scope:
• Forward-looking network
charges (~£4.5B /year)
• Connection charges (~£0.5B /y)
Fixed residual charges for all
demand users
BSUOS charged to suppliers
based on gross demand
Second task force for full BSUOS
reform:
• Who should pay?
• How should charges be levied?
Objectives of the review
• Charge users for these costs
of running the electricity
system in a fair way
• Reduce harmful distortions
• Practicality and proportionality

38. Charge
elements
Paid by Pre-TCR charges TCR decision
Implementation
timing
Transmission
Generation
Residual
Transmission-
connected
generation
“Negative charge” paid to
generators based on
capacity
Set charge/payment to zero April 2021
Transmission
Demand Residual
Large demand
users
Charges based on TRIAD:
£/kW/year net demand
during peak periods
Fixed charge based on connection
voltage and maximum import
capacity (£/site/day)
April 2022
Small users £/kWh charge, based on
annual consumption from
4pm-7pm1
All users pay same fixed charge
Distribution
residual
Large demand
users
Charges based on TRIAD:
£/kW/year net demand
during peak periods
Fixed charge based on connection
voltage and maximum import
capacity (£/site/day)
Small users Volumetric (kWh) charge All users within distribution zone
pay same fixed charge
TCR: Changes to residual charging

39. TCR: Changes to BSUOS charges
TCR BSUOS decision Balancing Services Task Force
Scope
• Charge suppliers based on
gross demand at the Grid
Supply Point
• Embedded generators no
longer receive payments
• Distribution-connected
generators continue not to pay
BSUOS
• Implementation April 2021
Context:
• BSUOS is a cost recovery
charge
• TCR principles should be
applied
Questions:
• Who should pay BSUOS
charges?
• How should they be levied?
Report expected in
September 2020
Current BSUOS charging
arrangements
• Transmission-connected
generation and all demand
users pay BSUOS on a
volumetric basis
• BSUOS costs for a settlement
period are allocated to all
users on a £/kWh basis
• Suppliers are charged
based on their net demand
at the GSP
• Suppliers pass on
payments to embedded
generators reflecting the
reduction in BSUOS costs

40. Access Significant Code Review

41. Background to the Access SCR
Objective of Access Significant Code Review (SCR): We want to ensure electricity networks are
used efficiently and flexibly, reflecting users’ needs and allowing consumers to benefit from new
technologies and services while avoiding unnecessary costs on energy bills in general.
We launched the Access SCR in December 2018. The scope is
> Review of the definition and choice of transmission and distribution access rights
> Review of distribution connection charging boundary
> Wide-ranging review of Distribution Use of System (DUoS) network charges
> Focussed review of Transmission Network Use of System (TNUoS) charges
We are assessing options against three key guiding principles. We will need to consider trade-offs
between these guiding principles:
> Supporting efficient system development
> Reflecting energy as an essential service
> Practicality and proportionality of implementation

42. Timeline and how to engage
March 20
Sep 19Dec 18
Published
1st working
paper
Dec 19
Launched
Access SCR
Published
2nd working
paper
Shortlisting
decision
letter
Autumn
20
Spring 21
Spring 22
1 Apr 23
Reforms
implemented
Minded to
decision
published
Final
decision
published
Decision on
code
modifications
Impact Assessment
Consultation
period
Mod development Change implementation
Dec 19
> We will continue to work with our Delivery
Group, Challenge Group and CFF ahead of
consultation
> To keep up to date with all our work on
Future Charging and Access - get added to
the Charging Futures distribution list at
http://www.chargingfutures.com/sign-
up/sign-up-and-future-events/

43. Access and EVs -Illustrative example: EV Fleet operator
Example: A delivery company is located in a demand constrained area. It wants to
connect new rapid EV chargers and provide vehicle-to-grid services.
This could provide additional options for this user to choose from. For example, lower level of
access right during the day when the vans are delivering goods.
We are reviewing the level of locational granularity and the approach to calculating future
network costs at different locations. In demand constrained areas, the delivery company could
receive credits, rather than charges, for exporting electricity onto the network.
We are reviewing the design of network charges. We could introduce stronger time-of-use
charges. This could incentivise the delivery company to charge their EVs at off-peak periods or
export back onto the grid at peak periods.
Reducing the amount of reinforcement that the connection customer pays for could significantly
reduce the user’s connection charge. We will only make this change if we can introduce better
locational signals.
Access rights
Connection
boundary
Locational
signals
Temporal
signals

44. Opening up markets for flexibility

45. • DNOs committed to developing distribution-level market for procurement of network
management services. Most have now launched tenders.
• Through the Open Networks project the DNOs are continuing to coordinate on
standardisation of their flexibility service. They are continuing to identify and address
further opportunities for improved consistency.
• The DNOs are developing a common CBA methodology for the comparison of network
asset and non-network service solutions.
• We consulted on our Distribution System Operation position paper (eg our approach
and regulatory priorities) last year.
• NG ESO is reviewing how it can improve and simplify the way it procures balancing
services.
• We have been working to open up access to the balancing mechanism, including
through implementing the European Balancing Project TERRE (this will enable access
for aggregators as well as flexibility providers).
• Conducted the Capacity Review to enable greater and make it easier to stack revenue
streams.
Markets which work for flexibility
Open up existing
markets (Eg ESO
ancillary service
markets)
Developing local
markets for local
flexibility services
Making markets work for flexibility is key to ensuring that services, such as storage and demand side response,
are fairly rewarded for the value they provide to the energy system. We are focusing on two areas: