Car batteries can optimize the power grid
This article was originally posted by PV Magazine Australia on 13th March 2024.Australian researchers have found that if 10% of vehicles are electric and utilize V2G connections, they could reduce peak electricity demand at local substations by 6% and save car owners hundreds of dollars per year on charging costs.
Research from Australia suggests that employing electric vehicle-to-grid (V2G) connections at a 10% penetration rate can reduce peak demand charges for local substations by 6% and substantially lower fueling costs for electric vehicle (EV) owners. However, without proper management, EV penetration levels above 20% could negate those benefits.
The study, ‘Network tariffs for V2G,’ conducted by enX and commissioned by the Australian Renewable Energy Agency (ARENA), aimed to explore the interaction between dynamic electricity and network tariffs (which are real-time, similar to wholesale pricing tools) and the increasing number of EVs connecting to the grid. The study also sought to understand how these EVs could help alleviate grid pressure in comparison to fixed time-of-use tariffs.
Findings indicate that V2G connections under dynamic pricing, specifically tariff types s3 & s6 in the chart above, led to the greatest substation peak demand shaving. These same dynamic pricing tariffs also saved significant amounts on EV owners’ electricity bills, with some V2G participants earning a net positive revenue on their vehicles’ electricity use, including one small account that covered 100% of their overall electricity use.
The analysis examined the load at the Metford substation in New South Wales, Australia, specifically focusing on one of the highest peak demand days of the year, March 6, 2023. On this day, the maximum peak demand reached 41.6 MW at 6 pm. Under a dynamic pricing electricity and network tariff focused on peak shedding, the substation experienced a reduction of 2.54 MW in peak load. This reduction accounted for 6.29% of the substation’s peak demand value.
