Plug in to unlock: the benefits of smart meter-enabled EV flexibility
Jacob Briggs, Senior Consultant at Cornwall Insight, outlines research by Cornwall Insight, commissioned by Smart Energy GB, demonstrating why charging electric vehicles (EVs) flexibly, with a smart meter, benefits consumers and the energy system as we transition to a smart, flexible and decarbonised future
To transition to a low-carbon energy system, it is essential that households embrace opportunities to use energy flexibly. For EV owners, making this change should be low effort and high reward.
By shifting when we use energy away from peak times (such as weekdays from 4 to 7pm), we can reduce the amount of energy that is generated from fossil fuels and better utilise spare capacity in the system.
Whether someone owns an EV or not, they can benefit financially, as a system with lower peaks can avoid some network and infrastructure upgrades. Research published last year from Cornwall Insight found that if households embraced opportunities to use energy more flexibly, we could avoid the need to build the equivalent of four new gas-fired power stations to cope with peak demand in 2030.
This new research builds on the previous analysis to assess the value of smart and vehicle-to-grid (V2G) EV charging within a flexible energy system in three ‘snapshot’ years of 2025, 2030 and 2040.
Smart charging is where a customer or third party manages their EV charging remotely in response to signals, e.g. price or charging preferences. V2G charging allows a two-way flow of energy from the electricity network to the car and back again – the EV essentially acts as a battery. This unlocks lower prices and financial rewards, such as through charging at off-peak times and selling electricity back at peak times when rewards are greatest.
The modelling found that, using time-of-use signals based on wholesale power costs, smart charging households could access wholesale electricity prices that were 24 per cent lower on average than prices for non-smart charging households. In fact, these savings reached up to 77 per cent on some days in 2025.
If all EV owners engaged in smart charging, this could result in roughly 7 GW of peak-time electricity demand from EVs being avoided. This is more than twice the capacity of Drax Power Station, the largest single power station in Great Britain.
Selling energy back into the grid through V2G could also save up to 70 per cent on electricity costs as V2G technology matures and cost and availability barriers lower. Households in the V2G category are anticipated to make an average of £320 of revenue in 2030 and £250 in 2040.
This article was originally published in The Path To Net Zero supplement circulated alongside The House magazine. To find out more visit The Path To Net Zero hub.
Image Credit: Getty Images, supplied by Total Politics.
