Vehicle to Grid frequency regulation revenue to grow to USD190m annually by 2022

October 21, 2013 // By Paul Buckley
Worldwide revenue from V2G frequency regulation technologies, which enable plug-in electric vehicles (PEVs) to participate in ancillary services for the power grid, will grow from less than $900,000 annually in 2013 to $190.7 million by 2022, forecasts Navigant Research.

Currently the V2G market is minuscule with worldwide capacity additions from V2G systems totalling less than 9 megawatts in 2013.  According to a new report entitled 'Vehicle to Grid Technologies' from Navigant Research, the V2G market will grow steadily over the next 10 years.  

V2G technologies, which enable plug-in electric vehicles (PEVs) to participate in ancillary services for the power grid, have been in development since the beginning of the modern electric vehicle era, but they are only now beginning to emerge in revenue-generating applications.  

“Business models for V2G technologies are starting to emerge in select markets around the world,” said Scott Shepard, research analyst with Navigant Research.  “Large corporations and government agencies, such as the U.S. Department of Defense, are driving V2G development and laying the foundation for individually owned electric vehicles to participate in grid services in the second half of this decade.”

Despite the many benefits of using V2G technologies to supply ancillary services for the grid, PEV owners must overcome several challenges.  Primary among these is the structure of the local electricity market. Deregulated markets are the most accessible test beds and launch points for market participation near-term.  In contrast, regulated markets governed by vertically integrated utilities provide ancillary services internally, and therefore may have limited access for independent power producers, energy service companies, or fleets seeking to test V2G business models.

Visit Navigant Research at www.navigantresearch.com