Investing in energy infrastructure to enable the Green Deal
Net Zero Investment Plan
Area 1 : Energy Infrastructures (14.5%)
Investment in TSO and DSO infrastructure, energy storage solutions, renewable energy sources, and grid modernization, including smart grid deployment for Vehicle-to-Grid (V2G) applications, is critical for facilitating electric transport adoption and enhancing energy resilience in Europe.
Investment Areas
Energy Priorities
TSO and DSO Expansion/Upgrade
Energy Storage Solutions
Development of Renewable Energy Sources
Modernising the Grid
Smart Grid Deployment/V2G
- TSO and DSO Expansion/Upgrade
Expanding and upgrading TSO and DSO infrastructure is imperative for meeting the growing demand for electricity and facilitating the widespread adoption of electric transport. These upgrades are essential for supporting charging infrastructure for both light-duty vehicles (LDVs) and heavy-duty vehicles (HDVs), as well as for enhancing maritime and inland port grids. Reinforcing connections to the national grid for shore-side electricity will boost energy resilience and promote cleaner transport options.
- Energy Storage Solutions
Energy storage solutions play a crucial role in relieving grid congestion and accelerating the integration of renewable energy sources. Investing in such technologies will enhance grid flexibility, mitigate the variability issues associated with renewables, and support the transition to a more-sustainable and resilient energy system. Prioritising energy storage solution development and deployment is essential for ensuring grid stability and promoting renewable energy deployment.
- Development of Renewable Energy Sources
The electrification of transport is impossible without decarbonised electricity. Expanding carbon-free energy sources is fundamental to achieving energy security, reducing greenhouse gas emissions and advancing the energy transition. Europe must prioritise the development of wind, solar and hydro – as well as other renewable and decarbonised energy sources – if it is to diversify the energy mix and decrease reliance on fossil fuels.
- Modernising the Grid
Digitising and modernising the grid are essential for improving demand-supply management and streamlining the process for creating new grid connections. Through embracing digital technologies, Europe can enhance grid reliability, optimise energy distribution and support the integration of distributed energy resources. Modernising the grid will also provide the foundations for future advancements in smart grid deployment and enable realisation of benefits such as vehicle-o-grid (V2G) capabilities.
- Smart Grid Deployment/V2G
Supporting smart grid deployment, particularly for V2G applications, is essential for optimising grid operations and leveraging the potential of electric vehicles as grid assets. Smart charging technologies enable EVs to be part of demand response programmes, thus helping balance supply and demand on the grid. Investing in smart grid infrastructure will allow for the efficient use of resources, minimise grid constraints and facilitate the transition to a more flexible and resilient energy system without heavy investment in infrastructure.
A Comprehensive Roadmap for V2X Integration in Europe
Energy & Infrastructures
A Comprehensive Roadmap for V2X Integration in Europe
The paper outlines enablers and barriers concerning bidirectional charging systems, clarifies key barriers, highlights ongoing efforts to mitigate them, and underscores the critical need for concerted and regulatory actions to achieve the transformative potential of V2X integration.
Electric Vehicles (EVs) both pose particular challenges and present promising opportunities for the energy system; they mark a pivotal moment in the evolution of transportation and energy sectors. With the increased adoption of EVs lies the imperative for strategic planning and collaborative action on Vehicle-to-X (V2X), a crucial technology for smartening the road transport sector.[i]
Recently adopted legislation – as part of the European Green Deal – has already paved the way for the roll-out of smart-charging technologies in the electromobility ecosystem.[ii] We welcome these initiatives and will monitor their implementation closely. Smart charging is a fundamental prerequisite for V2X, which will deliver further advantages for people, the climate and European businesses alike.
Recognising this, this document from the Platform for Electromobility seeks to present a comprehensive roadmap on V2X, setting out a series of actionable steps that by Member States (MS) should undertake, along with measures required at the EU level. Stressing the importance of a cross-sectoral approach, our strategy seeks to navigate the complexities of V2X integration in our energy system without delving too deeply into intricate technicalities. The paper outlines enablers and barriers to adopting bidirectional charging systems, clarifies crucial barriers – and highlights ongoing efforts to mitigate them – and underscores the imperative for concerted and regulatory action to realise the transformative potential of V2X integration.
1/ Benefits of bidirectional charging
a/ Benefits for public finances & grid investments
V2X integration offers a multifaceted solution, one with the potential to unlock a wide range of benefits across various domains. Foremost among these, V2X – as with other flexibility resources – complements conventional grid reinforcement measures, helping alleviate the strain on existing infrastructure while enhancing its resilience. We are already starting to see increasing tensions in the grid and the overwhelming need to reinforce it; therefore, the deployment of V2X and the use of EVs as batteries represents a ‘no-brainer’[i] and would effectively smooth the rollout of grid reinforcement, something that usually takes between 5-15 years. V2X integration thus offers access to a realm of ‘low-hanging fruit’ opportunities, allowing the cost-efficient adaptation of the grids to growing electrification.
b/ Benefits for Europe energy autonomy
The integration of V2X will help deploy renewable energy sources (RES), by providing efficient storage solutions. It has the potential to help balance the grid and increase the penetration of renewable electricity (RES-E) into it, thus accelerating the drive to climate neutrality. Indeed, in order to ensure generation adequacy – key for the energy transition – V2X will be pivotal. As intermittent renewable energy becomes increasingly prevalent, maintaining grid stability and meeting demand poses significant challenges. Here, V2X solutions can play a crucial role in balancing supply and demand, enabling dynamic resource adequacy analyses that realise the enormous potential of V2G capabilities.
c/ Benefits for grid operators
From the perspective of the grid operators, there are manifold advantages. For Transmission System Operators (TSOs), V2X is particularly beneficials for Frequency Regulation (FCR) Services, which are pivotal functions for TSOs. In addition to mere savings in battery costs, V2X optimises both standalone and grid-connected storage battery systems. FCR plays a critical role, not only in reducing the necessity for investment in battery storage services but also in minimising the need for grid upgrades. These efficiencies translate into systemic savings, ultimately benefiting electricity consumers. For DSOs, V2X can play a major role in local flexibility markets and congestion solutions providing services to DSOs and representing a valuable flexible resource that can be procured to ease tensions on distribution grids. This requires flexibility mechanisms in which V2X value can be stacked based on related remuneration. To enable even more value of V2X for every DSO, market based procurement of flexibility based on V2X shall be stimulated.
d/ Benefits for users, people and businesses alike
From an end user’s perspective, the benefits of V2X integration will be substantial. Through leveraging V2X capabilities, users will have the opportunity to earn money from feeding energy into the grid, thus enhancing the overall value proposition of electric mobility.[ii] Remuneration mechanisms (such as those based on availability, capacity or time) will trigger further consumers to participate; once they do so, they will naturally generate demand for V2X. V2X integration will not only enhance grid resilience and promote renewable energy uptake but also pave the way for a more sustainable, efficient and adaptive energy ecosystem, one where EVs can equally participate in flex mechanisms.
2. Legislative and Regulatory Principles for V2X Integration
As we call on legislators to begin shaping the regulatory framework for V2X integration, there must be a number of core founding principles that underpin their efforts to foster innovation, interoperability, fairness and trust within the emerging ecosystem.
a/ Consumer trust
Foremost among these principles must be building and maintaining consumer trust. Legislators must prioritise creating a robust system that instils trust among users, system operators and businesses alike. This will entail ensuring transparency and accountability in V2X transactions while also safeguarding consumer rights and interests.
b/ Business models based on use cases
The deployment of V2X infrastructure must be accompanied by corresponding business models, particularly where financed/cofinanced by public entities. As the value of V2X depends on the use case of fleet and chargepoints, there need to be proper business models created that provide an incentive for consumers. Regulators should therefore facilitate mechanisms to support user compensation and fair pricing; these should recognise the pivotal role granular pricing structures play in enabling diverse business models and in incentivising dynamic energy management. The increased volatility in our energy system arising from renewables and negative grid tariffs can further stimulate consumers to engage and participate in V2X initiatives.
c/ Commonly accepted and harmonised standards
The promotion of common standards is paramount for ensuring interoperability and reliability across V2X systems. These should allow the CCS standard to provide smart and bidirectional charging. This should be implemented as early as possible in both charging stations and cars. Any further delay will lead to infrastructure that is not future-proof and will fail to deliver the smart-charging services we will need for the energy transition to succeed. Standardisation bodies should prioritise development and enforcement of standardised protocols for battery efficiency and warranty and for EV charging protocols between both the grid and vehicle. This will bolster consumer confidence and trust in V2X technologies.
d/ Affordability through democratisation
The accessibility and affordability of V2G-capable vehicles must be a priority if access to this transformative technology is to be democratised. By incentivising competition and innovation in the production of V2X-capable chargers and EVs as well as through lowering the barriers detailed below, legislators can drive down costs and promote widespread adoption. This in turn will create economies of scale and lower barriers to entry. With the right regulatory framework in place, recharging costs can theoretically be brought down to zero with bidirectional charging.[i]
e/ Equal treatment for all grid usages
Ensuring equal access, participation, and treatment for all energy usages, including all type of V2X, is fundamental. All grid users should receive equal treatment without discrimination, be they electric vehicles, wind turbines or home appliances. Any exceptions – such as tariff exemptions – should be restricted to emerging user groups, should remain temporary and should be appropriately justified.
f/ Upgradability path
In envisioning the regulatory framework for V2X integration, it is imperative to prioritise establishing future-proof systems capable of evolving alongside advancing technologies and changing needs. Although V2X technology is not as yet fully harmonised across Europe and still faces barriers, its early rollout is needed in order to facilitate improvements. Central to this endeavour is the need for an ‘upgradability path’, embedded within the regulatory framework. Such a path will not only instils trust among consumers and markets but also ensure compliance with future technological advancements and emerging requirements.
g/ Public charging hidden potential
In Europe, a significant proportion of the car fleet lacks access to home charging. As a result, publicly available charging will continue to be necessary in the future. This presents an opportunity to leverage V2X technology at these points also. We therefore encourage public charging points to be V2X-capable; this is provided that the cost-benefit analysis is positive, they are priced similarly, only implemented on slow chargers and do not impede the rollout of charging stations across Europe.
3. Barriers to V2X Deployment
Despite the potential offered by V2X integration, several barriers continue to hinder its widespread deployment. Overcoming regulatory, technical and market hurdles will require concerted efforts.
a/ Implementation of the Electricity Market Design
At the forefront of these challenges are regulatory barriers, most notably the lack of implementation by MS of the 2019 Electricity Market Design, which discriminates and disincentivises the participation of V2X in the electricity markets. To address this, there is an urgent need for MS to accelerate their implementation.
b/ Double Taxation
One of the asks of battery stakeholders (EVs and stationary) is to eliminate double taxation; that is, the taxing again of electricity injected into the grid from a battery. Double taxation[i] remains a persistent concern, particularly in scenarios where energy storage is integrated with other loads. While progress has been made in mitigating double taxation for large-scale storage, challenges persist for small-scale storage assets such as V2X. For example, in Germany, double taxation for stationary storage has been removed, yet remains in place for mobile storage.
c/ Uncoordinated grid requirements
The absence of the anticipated regulations, coupled with limited access to organised markets and revenue streams, poses significant challenges to V2X deployment. Uncoordinated grid requirements and standards between countries are exacerbating these challenges, hindering interoperability and complicating cross-border deployment efforts. Divergent communication standards and disparate smart meter adoption rates – something that is particularly evident in countries such as Germany, which has low penetration rates – underscore the urgent need for harmonisation and standardisation initiatives to realise the full potential of V2X integration.
4. Call for coherence, actions and political ownership at EU level
a/ Coherence across Member States
As the EU navigates the complexities of V2X integration, it is vital to address the prevailing divergences among MS and to foster a cohesive regulatory framework that promotes innovation and harmonisation. Despite incremental progress, no MS has successfully removed all barriers to V2X deployment, underscoring the imperative for EU-level intervention. For V2X for slow public charging, we therefore call for national capacity targets – rather an EU-wide one – because the share of cars without access to off-street parking at home differs significantly between MS.
b/ Coherence across EU legislations and regulations
To advance implementation of V2X and harness its manifold advantages within Europe, it is crucial that the newly installed European institutions adopt a holistic approach to this challenge. All V2X-relevant measures should be in the form a comprehensive regulatory framework, rather than addressing them in isolated discussions, or rather than discussion technologies (AC vs DC). One way of ensuring this seamless integration across diverse legislative frameworks – and avoiding a fragmented approach – is to establish political ownership.
c/ Multilevel coherence on V2X
Cities will, in general, be the key enablers and accelerators of V2X due to the alignment between clean air and decarbonisation strategies (such as growing adoption of zero-emission zones, electrification of heating as an alternative to petrol/gas/wood). V2X should therefore be part of an integrated mobility and energy strategy at all territorial levels. We therefore call upon the EU to adapt the proposed SUMPs/SULPs into SUMEPs/SULEPs (Sustainable Urban Logistics/Mobility and Energy Plan). This will ensure coordinated and integrated planning, helping couple mobility/logistics with energy aspects
d/ Double mandate to jumpstart the market.
Mandating V2X interoperability for all bidirectional-capable vehicles, while at the same time requiring V2X capability for public fleets and buildings would be decisive in kickstarting the market and boosting widespread adoption. It would also ensure flexibility for independent aggregators and promote the use of submeters. Requiring interoperability and encouraging public fleets to lead by example will help jumpstart the market.
Conclusion
Additional measures, including addressing communication standards and issuing non-binding guidelines for MS, will be essential for fostering coherence and facilitating the transition towards a sustainable, interoperable V2X ecosystem. With upcoming revisions to key pieces of legislation now on the horizon, it is an opportune moment for the European Commission to demonstrate leadership and to spearhead concerted action to achieving V2X integration goals. By embracing coherence at an EU level, policymakers can unlock the full potential of V2X technologies and accelerate the shift to a smarter, greener future.
Introduction [i] V2X is an EV bidirectional charging technology encompassing several sub technologies: When the vehicle is plugged and electricity automatically flows from the car back to the grid, this is known as Vehicle-to-Grid (V2G). If the charging and discharging of electricity stored in electric vehicles takes place in buildings, this technology is known as Vehicle-to-Building or Vehicle-to-Home (V2B or V2H). [ii] Notably in the Energy Performance of Buildings Directive, the Renewable Energy Directive and the Alternative Fuels Infrastructures Regulation The benefits of bidirectional charging [i] It has been calculated that V2G can offer 21TWh of upward flexibility, and 24TWh of downward flexibility by 2030, considering 30% of the EVs are charged bidirectionally. Together with other flexibility resources, €11 to €29 billion could be saved in annual savings in distribution grid investments. Source : https ://smarten.eu/wp-content/uploads/2022/09/SmartEN-DSF-benefits-2030-Report_DIGITAL.pdf [ii] In a fleet demo in Denmark, a 10-EV fleet engaging in frequency regulation (FCR) services recorded an average revenue of € 1,860 per car per year[ii]. In a residential V2G project connecting 320 homes in the UK, the V2G units were able to create ‘between £230 and £300 of value per year through the spot electricity market’ and the project team expects that ‘when combined with flexibility services this could grow to £500 per year[ii].’ In the UK, a solution already commercialized proposes the first V2G tariff in the UK where EV drivers would get free charging thanks to their V2G charger and vehicle[ii], providing clear incentives and enhancing the social acceptance of the consumer to opt for bidirectional charging. Source: https://www.ofgem.gov.uk/publications/case-study-uk-electric-vehicle-grid-v2g-charging Legislative and Regulatory Principles for V2X Integration [i] Source: https://smarten.eu/position-paper-why-flexible-consumers-matter-a-contribution-to-eu-elections-2024/, p 9 Barriers to V2X deployment [i] In fact, battery stakeholders face a triple taxation. Once when the energy is taken from the grid, twice when part of the energy is injected into the grid, and a third time when that electricity is used somewhere else. The electricity injected to the grid should not be taxed when taken by the battery nor when injected back into the grid.
Solutions for a smooth integration of e-mobility into the grid
Energy & Infrastructures
Solutions for a smooth integration of e-mobility into the grid
Fifteen policy recommendations for sustainable governance and development of the power grid in front of the electric vehicles uptake.
As the adoption of electric vehicles (EVs) increases, it becomes imperative to step up our efforts to achieve their seamless integration – and related charging infrastructure – into the existing power grid. While the development of electric mobility is a significant asset to a clean energy system, it nevertheless raises questions over the management of power grids and connected charging infrastructure.
Some 60% of the EU car fleet has access to off-street parking space at home, and ‘unmanaged charging’ can create substantial peak loads. To a greater extent than passenger cars – which would only require a manageable 40kWh/week on average – the electrification of heavy-duty vehicles is a modality that requires specific attention. We have therefore dedicated a specific paper to this topic This current position paper aims to offer recommendations and potential solutions for ensuring that the development of the power grid is consistent and aligned with the growth of electric transportations of all modes.
There are many topics to consider under the heading of ‘e-mobility and the grid’, and this paper will present a succinct overview of a number of them. This will be followed by more in-depth papers on selected topics.
I. Communication, Coordination and Collaboration
1. Collaboration to reduce uncertainties
One of the main challenges in planning the electrical grid in a way that can absorb EV charging infrastructure lies in the uncertainty that surrounds how different types of EVs will recharge in different places. This also makes it difficult to assess needed investments. These uncertainties can be addressed through cooperation, knowledge-sharing, and effective planning.
Early coordination between stakeholders is key to success. Coordination around how charging infrastructure is deployed will ensure convenience and cost-effectiveness for users. We therefore recommend close cooperation between policymakers, regulatory authorities, energy companies, flexibility service providers, fleet managers, charge point operators (CPOs) and – most importantly – Distribution System Operators (DSOs). Such collaboration will benefit all parties.
In practise, this collaboration should:
- Be initiated and moderated by public and regulatory authorities
- Assess the grid in advance – even before any connection requests – and prioritise the flexible use of the grid
- Recommend reinforcing network components, should any overload be anticipated;
- Foster communication with municipalities to address network construction requirements when connecting charging stations
- Streamline the permitting and connection process.
2. Formalising this collaboration through ‘EV charging Blueprints’
It is important that this stakeholder cooperation also produce a state of play in the form of ‘Blueprint for recharging infrastructure’.
Adopting a ‘Blueprints for recharging infrastructure’ approach would help local authorities ensure an organised, planned and coordinated deployment of charging stations. This document – defined by local authorities and designed in consultation with the relevant stakeholders (in particular DSOs) – will comprise the local planning rules for implementing recharging infrastructure in main highways, national roads, and urban areas, including suburbs, could offer a solution. The ‘Blueprint’ would assess charging infrastructure required (such as the number of points to be installed, their location, their power and the types of socket), taking into account both the existing publicly accessible infrastructure and the existing and expected private charging infrastructure.
From the public authorities’ side, local authorities can leverage these ‘Blueprints’ in their Sustainable Urban Mobility Plans (SUMPs) as relevant tools for promoting cooperation and engagement with DSOs and CPOs in the short term. When fully deployed, SUMPs enable an iterative approach with DSOs and other economic actors from the outset, allowing for proactive planning and network development in the short, medium and long term.
3. Coordination & system governance changes needed at all levels
In order for the European regulatory framework to evolve in a way capable of supporting grid optimisation and investment in a coordinated manner, there should be discussions between all regulators at EU level, as well as between the Council of European Energy Regulators (CEER) and the Agency for the Cooperation of Energy Regulators (ACER). The former should be encouraged to act, and the latter to update network codes as needed (see further details below).
4. Implementing existing EU legislations
However, until EU coordination can be established, the work required should be undertaken at national level. This national level work includes the proper implementation of existing articles of legislations, such as the Electricity Directive of 2019 (notably its Article 32, which incentivises flexibility procurement by DSOs), the recently adopted Renewable Energy Directive and the reform of the Electricity Market Design, which should be adopted soon and strengthen the existing legislation.
II. Support for Network Operators and grid infrastructure
5. Improve effectiveness of Network Development Plans for EV integration
With the aforementioned coordination and advance information sharing, network development plans – which not least for charging infrastructure for battery trucks are ineffective – can be vastly improved. National governments must be reminded of their responsibilities – most notably those set out in the Alternative Fuels Infrastructure Regulation (AFIR) – to enforce these regulations effectively.
Member States, via their National Regulatory Authorities (NRAs) and involving market parties, should make sure – and even encourage – DSOs and TSOs to plan and invest in anticipation. This should be under the supervision of the energy regulator, prior to connection requests for charging infrastructure and should also take into account flexibility options into account.
6. Resources and digital solutions to support DSOs
Many DSOs lack the digital infrastructure to implement solutions that would facilitate and simplify the EV charging connection process. The gaps include:
Digital connectivity between DSOs and CPOs, for the purpose of transparently sharing available grid capacity (for charging). Enhancing transparency offers a crucial advance that could optimise the charge point deployment procedure. A substantial number of charge points are still awaiting installation in a number of countries, as a result of a lack of available information to CPOs on existing capacity. While some DSOs do provide heat/capacity maps, which enable CPOs to plan their deployments accordingly, the majority do not. Generating such maps would significantly enhance the overall process. In addition, there should be:
Digital Ticketing Systems, so that applicants can know the status of their grid connection request and timeframe for replies. Digital and automatic tools, which could give historic information on the connection of charging stations in different locations (map-based).
7. Establish cross-functional working group within the DSOs
Coordination and knowledge sharing is also essential within the network operators, in order to share expertise and project information across departments, for example. Therefore, DSOs should establish a cross-functional working group within the DSO to address any issues relating to charging station connections.
8. Proactive, anticipatory grid investments required
While private EVs will represent only a fraction of the total grid investment required by 2030, European distribution grids will still require substantial investments[1] to be able to support e-mobility and to integrate EV charging infrastructure. As DSOs are regulated entities, there must be an adequate regulatory framework established in each country that would allow proactive, anticipatory investments in the grid. This could be on the basis of a small fee approach.
Inspired by the UK’s Green Recovery Scheme managed by Ofgem, there should be European funding mechanisms established to enable DSOs to apply for funds specifically for grid reinforcements for EV charging. Moreover, investments should be made not just in grid expansion but also reinforcement, modernisation, efficiency and flexibility.
DSOs should be empowered to initiate initial investments that follow with incentives and proper business model to plan ahead. The market needs to develop incentives for the timing of necessary upgrades.
9. Promote local energy hubs through smart regulation
The impact of local electricity consumption for clean mobility can be mitigated, if it is matched with the local energy generation connected and delivered through the grid through smart management of consumption and generation. Building on the energy-sharing Article 15a in the revised Electricity Market Design, this has the dual potential to facilitate grid integration, while increasing direct consumption of clean energy. Realising this dual potential would require valuing ‘energy hubs’, where local consumption is matched with local generation.
10. Invest in and implement smart and flexible solutions
Smart and bidirectional charging can play an important role in optimising the grid integration of EVs, as well as alleviating their impact during peak hours. Thanks to smart meters – in synergy with dedicated measurement devices – the needs for, and costs of, network capacity reinforcement can be minimised and the deployment of new charging points optimised, by providing information of the relevant distribution network parameters. Likewise, it would help flattening load peaks. This would ultimately reduce the carbon intensity of the energy system and alleviating the impact on the distribution network.
As non-wire technologies[2], smart and bidirectional charging enable the application of the Energy Efficiency First Principle. Indeed, by using already existing technologies, whose initial purpose lies somewhere else, we avoid expensive investment in new capacity.
The benefits of such service are even more striking when EVs are turned into energy storage assets that can return power to the grid through bidirectional charging. This allows for grid balancing, thus boosting grid reliability and stability while lowering the charging cost for consumers. EV charging can also be aligned with local renewable energy production and electrical solutions, such as heat pumps in buildings. Last, much greater amounts of electricity can be moved via existing cables by deploying optimisation tools such as dynamic line rating.
11. Reform of grid connection agreements between (D)SOs and CPOs
To enable flexibility, smart charging and bidirectional power transfer at scale will require smarter grid connection agreements between DSO and CPOs. In particular, in those cases where market-based alternatives for congestion have been shown by the NRA to provide insufficient volumes (in line with article 32 of the Electricity Directive), flexible grid connections should be considered. This will allow for flexible and time-bound contracts or for capacity contracts where the contracted transport capacity is partially or not guaranteed. Such an approach can be implemented in various ways, for example through a so-called ‘non-firm Connection and Transport Agreement’ or via other flexible agreements.
Clear conditions, to guide consumers, operators and system operators on their rights and responsibilities, are required.
Alongside grid connection agreements, dynamic network charges can assist the adoption of flexibility. These would allow flexible solutions, such as smart vehicle charging and other demand-side measures, to play their part in solving grid congestion.
[1] https://cdn.eurelectric.org/media/5275/debunking_the_myth_of_the_grid_as_a_barrier_to_e-mobility_-_final-2021-030-0145-01-e-h-2DEE801C.pdf
[2] Technologies which do not need any grid, Capex investments or more material to install.
III. Market models and rules to foster smart & flexible EV charging
12. Market models to incentivise consumers and Charge Point Operators
To provide the required flexibility for the energy system, proper market models and regulatory frameworks are needed. Flexibility first requires a regulatory-friendly business model, given the scale of the deployment. While the technology of smart charging is already being developed and recognised within the EU legislative framework, bidirectional charging – despite its considerable potential – still encounters many hurdles hampering its proper development.
Governments, system operators and market regulators must recognise both technologies as beneficial for grid stability, instead of seeing them as beneficials for consumer and as a generator. Fostering a functioning market model will incentivise operators/aggregators to ensure that flexibility is offered on a large scale. Flexibility market demands should be driven by the value they bring both to the consumer and the energy system as a whole, not by technology or capabilities. Adopting market models where flexibility plays an important role will only become a reality if consumers see clear benefits or receive incentives to participate. Without clear rights and conditions for both CPOs, System Operators (SOs), FSPs and consumers, market models will not develop at scale, and consumers will not feel incentivised to participate in flexibility. This results in a small market where flexibility, V2G and grid support will not be adopted, and grid integrations would remain local initiatives without perspectives at scale and harmonised roll out. In this sense, as already mentioned, it is paramount that Member States swiftly implement the 2019 Electricity Market Design and to already prepare the new changes brought by the current revision of the EMD, which will further strengthen such friendly business models.
IV. Standards to ensure proper functioning of the grids systems
13. Standardise and integrate technologies
Smart metering[1], or at minimum dedicated measurement devices, are necessary at the DSO side for grid state information and to measure levels of flexibility delivered. Meanwhile, smart charging technology is required at the CPO side for adapting the charging power and the digital connection between DSO and charging infrastructure. The development of both technologies – smart metering and smart charging – requires standardised and transparent procedures to facilitate connections for CPOs. In addition, it needs future-proof communication standards in EVs and in energy management systems, charging infrastructure and building energy management systems.
This requires simplified conformance testing and compatibility checks, by means of a harmonised certification on the side both of EVs and charge points. The existing regulatory connection requirements from the ACER may require readjustment to align with current technology. It is important to acknowledge and address obstacles arising from technological limitations.
14. Update network codes
To ensure that EVs and their flexible capacity are able to be integrated into grids, it is important to adopt EVs in EU based grid codes, starting with the amendments to the Grid Codes RfG (requirements for Generators) and the new Grid Code Demand Response. It is also important to adopt them in EU grid codes so that SOs and Member States adopt and embrace EVs and corresponding charging point in harmonised rules and regulations.
We also call on legislators to pay particular attention to the revision of the Network Code RfG and the new grid code on Demand Response, taking into account the requirements for V1G and V2G in the grid codes.
15. Workforce development
To guarantee that these measures are truly effective, energy companies and relevant stakeholders must be supported in their efforts to develop jobs and skills required to manage the grid and the install charging points. Thus, a comprehensive framework also requires addressing this shortage of skilled and certified workers.
To improve the attractiveness of these jobs and to promote the available training and retraining offers, the EU institutions and Member States should undertake a mapping of skills shortages. This should consider both traditional and new skills. That way, we can assess the needs for jobs and skills in each sector, developing tools to identify and publicise available training, and highlight those that need to be created. Practitioners from CPOs and DSOs should be involved in organising training programmes funded by national and regional funds. Last, national and regional communication campaigns should be highlighting attractiveness of these sectors.
[1] Smart meters in particular, as one of the solutions allowing smart charging, play an important role in grid management optimisation and flexibility services promotion. The combination of both technologies could provide the system with the necessary data to manage more efficiently the charging process and, thus, reducing the impact on distribution network. Dedicated measurement devices can complement smart meters by providing more data granularity for demand response and flexibility purposes, or substitute them in the situation where a consumer does not have one.
EU Election Manifesto: People at the heart of the e-mobility ecosystem
Manifesto Third Pillar
People at the heart of
the E-mobility ecosystem
As Europe shifts to a green economy, the demand for workers in industries such as critical raw materials, batteries and renewable energy industries will grow. Therefore, it will be essential to allocate EU resources and support to help steer young people into those technical fields essential for the green transition. There should be communication campaigns aimed at raising the visibility – and value – of these technical fields. It will also be crucial to implement well-funded reskilling programmes that will attract workers away from existing traditional industrial sectors and into emerging sectors such as renewable energy, grid management, infrastructures and recycling. These programmes will upgrade workers’ skills, train future workforces and ensure a just transition for the workers, their employers, and regional authorities.
The wider adoption of electric vehicles and rooftop photovoltaic solutions offer significant opportunity to unleash ‘prosumer potential’ in Europe. Restructuring Europe’s electricity market will allow us to maximise this potential, specifically through creating opportunities for Vehicle-to-Grid (V2G) where appropriate. This would enable EV drivers to take an active part to the transition by supplying power back to the grid. Allowing them to be rewarded for providing additional grid capacity and thus making the energy system more dynamic and resilient.
It is critical that zero-emission mobility is affordable to everyone. To that end, both old and new electric mobility solutions must be scaled up across Europe: Existing facilities include public transport offerings, shared cars and e-bikes for situations where individual cars are unnecessary. When they are unavoidable, newer solutions include low-cost leasing options, targeted purchase incentives policies and industrial strategies that support the deployment of smaller, more-efficient battery models should be provided. The rapid uptake of electric vehicles within corporate fleets will accelerate their second-hand availability. Implementing the Climate Social Fund should help drive this transition with the least possible impact on lower income families.
Our statement on the reform of the Electricity Market Design
Electricity Market Design
The Platform for electromobility urges ambitious adoption of EMD reform to drive grid-friendly e-mobility
The Platform for electromobility, uniting industries, civil society organisations and cities from the transport, energy and clean tech sector, welcomes the Electricity Market Reform (EMD) proposal as an important opportunity to support the build-out of grid-friendly e-mobility across Europe. We appreciate the proposals improve the existing electricity market framework in a way that facilitates cost-effective deployment of individual or aggregated smart and bidirectional electric vehicles (EVs) charging. As the EV market is growing rapidly, smart and bidirectional charging will quickly become one of the most important sources of demand-side flexibility. In the collective European effort to decrease fossil gas imports, EV charging flexibility will be instrumental to reduce consumer costs, greenhouse gas emissions and better integrate solar and wind in the grid. Importantly, by offering additional revenues or cost saving opportunities to EV owners, the reform accelerates EV take-up and the clean transport transition.
The Platform therefore urges co-legislators to keep the level of ambition and a swift adoption. The European Commission’s EMD reform proposal supports the uptake of e-mobility in the following ways:
The reform recognises EVs as flexibility resource
Member States will have to make a detailed assessment of the needs and the potential of demand-side response and storage. Based on the assessment, an indicative objective shall be set and supportive measures, such as a flexibility support scheme, may be introduced. It is important to properly include EVs as a source of demand response and storage in both the assessment of the flexibility needs and the objective for demand response and storage, and ensure appropriate participation of EV stakeholders in these assessments processes.
The reform further supports the participation of EVs in the markets
The threshold for participation in the day ahead and intraday markets get lowered to 100 kW, which makes them more accessible to aggregations of EV fleets. This will help develop the market for user-centric smart and bidirectional charging services. It may be advisable to extend this lower threshold also to capacity markets.
The reform accelerates planning for EV charging infrastructure
Transmission and distribution system operators will be financially incentivized to fully consider local demand side resources, such as EVs, when looking for solutions for grid congestion. System operators will propose further transparency and proactivity on their planning for connecting EV charging infrastructure, for example by sharing hosting capacity available for EV charging. This is essential information for providers of EV charging services and helps accelerate grid-efficient build-out of EV charging infrastructure.
Bidirectional charging : let's avoid double taxation for EV owners
Energy Taxation Directive
Ensuring fair taxtion for EV owners providing flexibility to the grid
By purchasing more and more electrified assets, which can produce, store, or send electricity to the grid, consumers are actively participating in the energy transition. In the transport sector, Electric Vehicles (EVs) is the mean to decarbonise the sector. However, more than mere transport assets, EVs can become energy assets, ‘battery on wheels’, if they unleash their flexibility, providing benefits to the consumers and to the grid.
How? With smart and bidirectional charging. Smart charging goes in one direction and enables adjustment to the charging process depending on external signals. Bidirectional charging – also known as V2X (‘vehicle-to-everything’) goes a step further and allows the vehicle to exchange energy with the connected asset (grid, home, building) in both directions, as well as charging or discharging for as long as it is plugged in. This means that the vehicle can offer services for a longer timeframe, as unidirectional charging stops once the battery is full.
One barrier which deter the uptake of bidirectional charging schemes and similar flexibility services in the Member States is the possibility of double taxation in the current version and under the proposed revision of the Energy Taxation Directive (ETD). On the EV owner side, such double taxation disincentivises the use of bidirectional charging because it costs the driver twice as much to essentially not use the energy that is back-fed to the grid. It also hampers the development of prosumer business models supporting the active contribution of consumers in providing flexibility services to the system. On the energy supplier side, this creates unnecessary administrative burden.
Thanks to bidirectional charging capabilities, the electricity can flow between the EV battery and the grid multiple times between the moment the EV is plugged and the one when the electricity is consumed for driving. Having to track the amount of energy transferred and calculate the tax on each transaction must be avoided to prevent hindering V2G services: taxes and tariffs should be applied exclusively on the amount of energy actually exploited by the final user, by means of proper metering.
We therefore propose the following change to the current ETD proposal, to ensure these ambiguities are addressed directly in the legislation:
Proposed amendment:
Art. 22.4: …For the purposes of the first subparagraph, electricity storage facilities and transformers of electricity may be considered as redistributors when they supply electricity. Active customers (as defined in Directive (EU) 2019/944 Art. 2(8)), including electric vehicle or battery owners participating in bidirectional charging schemes and other customers providing flexibility services to the grid, shall be exempt from taxation on unused energy which they reinject into the grid.
Current proposal text:
Art. 22.4: …For the purposes of the first subparagraph, electricity storage facilities and transformers of electricity may be considered as redistributors when they supply electricity.
Statement on EP ITRE Committee on RED ahead of Plenary vote
Renewable Energy Directive
Our statement ahead of Plenary vote
The Platform for electromobility is pleased to see the progress established by EP ITRE Committee on the recast Renewable Energy Directive (RED). This revision represents an unmissable opportunity to achieve two strongly related public policy objectives: accelerate the transport sector’s transition towards zero emissions and modernize the current legislative framework for renewable energy as a whole, and more specifically for Europe’s transport system.
With the European Parliament scheduled to formalize its position on the file in mid-September, the Platform would like to shed the light on some elements that could improve the EP’s position:
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Include private charging in fuel neutral credit trading mechanisms
The Commission’s proposed EU-wide requirement for Member States to set up a fuel neutral credit trading mechanisms is highly welcome. However, the mandated credit system, as established by art 25(2), should not, as it would as the text stands, limit the scope of this new system to public charging points only. Any charging points should be allowed for inclusion under national credit mechanisms. Limiting the scope of the credit mechanism at EU level to public recharging stations will lead to inefficiencies and distortions, and affect the deployment of charging infrastructure. The ITRE Committee has gone in the right direction, leaving the option for Member States to set up their system in the way they see best fit, including a voluntary inclusion of private charging.
Given that the vast majority of EVs in the EU (>70%) will be charged at home or at the workplace, the Platform believes a stronger wording is needed, namely expressly including private recharging stations in the mechanism.
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Ensure appropriate energy efficiency ratios regardless of accounting methodology
The current RED allows countries to choose between setting transport targets based on energy volumes/content or GHG emission reductions. Contrarily, both the Commission’s proposal and the ITRE Committee Report call Member States to set targets based on GHG reductions only, in clear countertrend compared with the 24 out of 27 Member States currently using an energy-based system. With this new proposed accounting methodology comes the deletion of the existing “multiplier system” or ‘Energy Efficiency Ratio (EER)’. The multiplier or EER accounts for the superior energy efficiency of renewable electricity, and is currently set at 4 for electricity. The mandate for the new transport targets does contain an “implicit” EER, i.e. a different fossil fuel baseline.
Nonetheless, as Member States are expected to push for maintaining the flexibility to choose between GHG- or energy-based targets, it is crucial to maintain an Energy Efficiency Ratio (EER) of at least 4 regardless of the accounting methodology used (in case a member states chose to keep an energy-based system or the current proposed implicit multiplier in case of GHG emission reductions system), reflecting the fact that EVs are between 4-5 times more efficient than internal combustion engine cars (“well to wheel” efficiency) powered by any renewable fuels.
Hence, the Platform believes that, while it would be welcomed to maintain flexibility for countries to choose their accounting system, appropriate EERs should be kept ensuring that direct electrification is able to compete on a level playing field.
EV Charging: how to tap in the grid smartly?
EV Charging :
How to tap in the grid smartly?
With a market penetration of 10% in Europe in 2021[1], and with a purchase price and total cost of ownership outperforming that of the internal combustion engine (ICE) before the end of 2027[2], the take-up of electric vehicles (EVs) is expected to accelerate significantly in the coming years. The widespread electrification of transport is the most efficient way to reach Europe’s climate objectives for the sector. Challenges may lie ahead, but smart charging must not be overlooked as the main asset for overcoming these hurdles.
A critical mass of EVs on the market will impact electricity consumption patterns and create an overall increase in electricity demand, particularly during peak-time periods. Smart charging can be a crucial tool for increasing the adoption rate of EVs, by mitigating the stress on the grid and supporting the transition towards sustainable electricity; each connected EV helps reduce CO2 emissions further. Smart charging can reduce CO2 by an estimated annual 600,000 tons by 2030, through the greater integration of renewables in the grid.[1]
With the electrification of usages, a rapid increase in decentralised and local loads could – if not managed correctly – overstretch the current low-voltage distribution grids, particularly in residential or commercial areas[2]; smart-charged EVs provide a solution. Bidirectional charging and other flexible services – where appropriate – can also provide solutions and benefits, both to the grid and to the end-user (of the grid and of the vehicles), and should not be overlooked.
The Platform for electromobility therefore welcomes that the ‘Fit for 55’ package recognises the importance of smart charging for integrating transport in the energy system but we encourage more robust and consistent support for smart charging throughout the package. In order to unlock all the benefits smart charging can deliver to the electricity system, to EV users, to the environment and to society at large, the following considerations should be respected in a coherent manner throughout all relevant legislative files.
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What should be classified as smart charging?
Definitions of smart charging differ between legislations. Indeed, different levels of ‘smartness’ are possible, depending on the business solution deployed and the level of involvement of the consumers. The Platform for electromobility believes that charging installation should be considered smart if:
- it provides real-time adjustment
- it adjusts charging in response to external signals
- the adjustments give additional clear benefits to the EV driving consumers, providing flexibility to the grid.
Bidirectional charging comes to complement smart charging services. While unidirectional charging enables adjustment to the charging process depending on external signals, bidirectional charging – also known as V2X (‘vehicle-to-everything’) goes a step further. It allows the vehicle to exchange energy with the connected asset (grid, home, building) in both directions, as well as charging or discharging for as long as it is plugged in. This means that the vehicle can offer services for a longer timeframe, as unidirectional charging stops once the battery is full.
What are the benefits of smart and bidirectional charging?
Flexibility services are a vital enabler for grid management in the energy system of a carbon neutral Europe, and smart charging can play a crucial role in delivering this flexibility. New and refurbished charging installations (public and private) should therefore be smart.[1] The timeframe for a potential eventual retrofit of existing stations should be defined through a comprehensive impact assessment, coordinated with the stakeholders of all affected sectors and Member States. Such an impact assessment will allow a comprehensive overview of the requirements for retrofitting, and will therefore optimise both the cost and the deployment of smart charging points.
- Smart charging will have a key role for the user in:
- Empowering consumers in the energy transition, by transforming electric vehicles into an energy asset.
- Taking full advantage of low electricity prices in the system for consumers and reduce the consumer’s bill of electricity (savings are estimated between €60 and €170 per year[2]).
- In the heavy-duty vehicle (HDV) segment such as e-buses, smart charger capability offers the possibility to optimise the charging process according to the e-bus’s schedule, managing the allocation of the available power at charging depots (e.g. identifying and setting different priorities and criteria for charging the vehicle based, for example, on the order of arrival, departure-time priority, etc.).
- Smart charging will have a key role for the grid in:
- Increasing system efficiency, by integrating the road transport sector into the energy system. This will optimise the use of the electricity grid and reduce the investments required in the power grid (which could reach €375-€425 billion by 2030[3]) compared to those of unmanaged charging.
- Avoiding grid congestion, by lowering the load pressure and consequently enabling the more efficient integration of EVs into the power system.
- Taking full advantage of the availability of renewable electricity, therefore increasing the penetration of variable renewable energy within our energy system.
- Bidirectional charging could also have a key role for the user in:
- Empowering the consumer in the energy transition to an even greater extent, by transforming the electric vehicle into a ‘battery on wheels’.
- Taking full advantage, and in particular Vehicle-to-Home (V2H), of self-consumption while mitigating their exposure to high prices for customer exposed to dynamic tariffs.
- Selling back electricity to the grid to bring further significant financial benefits for the consumer.
- Generating further revenue streams for public transport operators and/or fleet managers, in particular in the case of depot charging, allowing reductions to the total cost of ownership and thus offsetting the cost of charging infrastructure while generating additional revenues.[4]
In addition, other technological innovations capable of bringing flexibility to the system in the future – as well as a proper determination of the correct balance between charging modes using a case-based approach – should not be ignored but rather be carefully considered.
How to make smart charging work?
An enabling policy framework is needed to unlock these benefits and deliver them to both the electricity system and to society at large. The legal framework should be consumer-focused, consistent, future-oriented, and should allow appropriate reactivity, coordination and data sharing:
- Consumer focused: Any legal framework should create provisions that ensure that those EV drivers who provide flexibility by adopting smart charging solutions receive net positive effect for so doing. Consumer adoption is key to a successful implementation of smart charging technologies, and therefore should be made the central stakeholder.
- Consistent: Any definition and provisions set out in the AFIR, the REDIII and in the revision of the EPBD, should be both mutually consistent and consistent with energy directives in general, in line with the definition of storage. In particular, it will be essential to maintain consistency between the different definitions for smart and bidirectional charging. Furthermore, it will be vital that regulations consistently pursue a level playing field for smart charging and other technologies that provide flexibility to the grid. Consistency between legal definitions should also be ensured by avoiding overlap with the definition of ‘digitally connected stations’. To run the smart charging system in a coherent way, regulatory framework must also support the different actors of the eco-system to cooperate together, including OEMs, to optimize the benefits while ensuring that batteries are preserved.
- Future-oriented: A legal definition of smart charging should be sufficiently broad, and mention benefits without mentioning technicalities, so as to include future technologies.
- Reactivity: Smart charging should allow adjustments that are rapid enough to deal with grid disturbances and emergencies.
- Data: To ensure this necessary level of reactivity, smart charging requires access to information from the battery management system. On the basis of a contractual agreement, relevant and necessary data should be made available to vehicle owners and users, as well as third parties acting on their behalf.
- Cooperation: Smart charging needs the different actors of the eco-system to work together, including OEMs, to optimize the benefits while ensuring that batteries are preserved.
Our specific policy recommendations for smart and bidirectional charging
Incentives and support for the uptake of smart charging should be proposed, as it can offer a full range of additional services compared to regular charging. Bidirectional charging should also be encouraged when demonstrating the positive socioeconomic impact and creating a net benefit for the EV driving consumer who is contributing to the energy efficiency of the entire system.
The Platform calls for ensuring the consistency of the RED III with both the new Regulation on the deployment of alternative fuels infrastructure and with the energy performance of buildings directive (EPBD). The current definition of smart charging and bidirectional recharging should be aligned, and any changes to the related definitions and provisions in one text should also be made in the other.
The Platform welcomes the Commission’s recognition of the role of smart charging in the AFIR for enabling system integration. Improvements should also be made to support smart charging deployment. We therefore call for improvements to the requirements on smart charging (art. 2 and 5.8). You can read more details in our paper dedicated to AFIR here.
Time with the vehicle plugged: as important as using a smart charger: To realise the full potential of smart charging, the recharging points should be deployed at locations where vehicles park for extended periods of time. This allows the flexibility of choosing when to start and stop charging. At or near home is the main one, followed by the workplace. On average in EU, 60% of passenger cars have access to off-street parking at home, where is relatively easy to install a small charger. The other 40% of the car fleet will depend on the urban public infrastructure to recharge their batteries, as most of them won’t have access to a parking space at work.
On average, a battery passenger car in the EU consumes around 50 kWh/week. Three main prototypes of public recharging exist: high-power charge stations (equivalent to a petrol station), chargers in commercial areas (typically 22-90 kW) or chargers in residential areas (3.7-11 kW). High power chargers have limited flexibility. Here drivers usually seek the maximum power in the shortest amount of time possible In a commercial area, the vehicle will need between one to two hours a week, while in a residential area, the car can be plugged in for more than 12 hours a day (even more during weekends) replicating the use case of people with off-street parking at home. In other words, in residential areas, the vehicle can be plugged in for 64-times longer than in a commercial location.
[1] https://insideevs.com/news/564628/europe-plugin-car-sales-2021/#:~:text=Thanks%20to%20the%20strong%20second,in%20ten%20was%20all%2Delectric. [2] https://www.transportenvironment.org/discover/evs-will-be-cheaper-than-petrol-cars-in-all-segments-by-2027-bnef-analysis-finds/ [3] Elia Group “Accelerating to net-zero: redefining energy and mobility” [4] Smart charging: integrating a large widespread of electric cars in electricity distribution grids – EDSO, 2018 [5] Exceptions such as underground parking lot, where Wi-Fi to is impossible may exist or through location management system. [6] https://www.concerte.fr/system/files/concertation/Electromobilite%CC%81%20-%20Synth%C3%A8se%20vFinale.pdf [7] “Connecting the dots: Distribution grid investment to power the energy transition”, Monitor Deloitte, E.DSO & Eurelectric, January 2021 [8] Currently, and assuming that the availability band made available by the e-buses in depot is 50 KW, it is expected that “Bus 2 Grid” will reduce the costs of the infrastructure to zero and generate additional annual revenues of €1000 per bus. Enel Foundation 2021 “Scenari E Prospettive Dell’elettrificazione Del Trasporto Pubblico Su Strada”.
PV – EV : A powerful duo to make Europe drive clean
The three keys for a join deployment of solar power and electric vehicles
Electric vehicles (EVs) deployment needs to significantly accelerate in the coming years. However, challenges to its deployment (lack of distribution grid availability, low consumer engagement, challenges to the deployment of the infrastructure during renovation, etc.) show very close similarities with those posed by the deployment of distributed photovoltaic solar power plants (PVs). Therefore any successful solutions should benefit both EV and PV deployment.
The uptake of EVs, together with PVs deployment (mainly via rooftop solutions), opens an important opportunity for unlocking a European ‘prosumer’ potential. ‘Prosumer’ refers to a model where individuals manage their own energy supply and consumption. Prosumer models can become a powerful enabler of Renewable Energy Sources (RES) integration, including photovoltaic solar power plants (PV). The joint integration of PV and EV will also have a significant impact on citizen carbon footprint (for their home energy and transport), by ensuring EV charging take place during periods of highest renewable content.
The rapid, massive uptake of EVs has the potential to become both a flexible asset for grid management and an opportunity for prosumer business models. EVs will also provide a boost to increasing the cost-effective penetration of renewable energy – like PV – within the electricity system. The combination of EVs, their batteries and smart-charging functionalities as sources of ancillary services for the distribution grid will bring clear benefits, in terms of RES integration, for both individual and collective projects. Electromobility and renewable energy therefore offer a win-win partnership. The benefits of smart and bidirectional charging in regions with high solar capacities are clear: when sun sets and falls, EVs can optimise consumption and grid constraint and avoid polluting at peak times.[1]
Recent European legislation, through the ‘Fit for 55’ package, leverages these opportunities, notably in the revision of the Renewable Energy Directive (see our full position here and here), but there is still more that can be done to increasingly make cars in Europe run on renewable energy.
Signed by both renewable energy suppliers, charge points operators (CPOs) and other relevant stakeholders, this joint call shows the enthusiasm within the whole industry to explore the synergies between solar electricity and EV charging solutions. To enhance these synergies and solve common challenges between EVs and PV, we recommend:
1. Developing an enabling framework for EV drivers to become prosumers
A significant share of EV drivers (30-50%) charging at home are usually interested in installing PV panels as part of their broad decarbonation objectives and to maximise their contribution to climate change objectives.
This offer considerable potential for encouraging prosumer behaviour, but in order to realise this potential, an appropriate regulatory and technological framework is needed. To make this a reality, the EU should develop a distributed energy strategy capable of empowering and boosting prosumers with solar PV, battery and EV, and, at the same time, ensure that the electricity distribution grid can connect distributed RES. It should be noted here that the adoption of these distributed loads does not pose a problem for the distribution grids in the short- and medium-term, since the most significant impact will occur principally in very specific areas and at a later stage, when greater investment will be needed.[2]
Rooftop solar, EVs and other local flexibility resources will only realise their full potential once they are able to also provide grid services via flexibility markets. This will require the full implementation of the Clean Energy Package across Europe. However, because this is not yet the case – despite the deadline expiring – the EU should look into options for applying greater pressure on Member States. A full implementation would allow entry into the next phase, which will see the designing of local flexibility markets, together with the European DSOs, to find appropriate flexibility signals for EV users.
2. Ensuring an enabling framework for solar PV deployment
To support the use of renewable energy in electric mobility, an enabling framework must be build. PPAs contracts must be facilitated, through clear frameworks and financing support – the guidelines on PPAs will be critical here. In addition, the stability of investment signals and market rules will be key.
In addition, permitting still pose significant barriers to solar PV project development. Here, the RED II provisions must be implemented, and the Commission should support the exchange of best practices.
3. Helping transition to needed new skills
With the development of new economic sectors, boosted by EV uptake such as PV industry, the transition to electromobility does not pose a threat but rather an upskilling opportunity for workers. New skills will indeed be needed, both to adapt the manufacturing of vehicles and to install the required infrastructure across Europe. We recommend the launch of a Skills Initiative on Solar installers, in synergy with CP operators and installers, as well as a Distributed Energy Installers Skills Initiative.
From a forward-looking perspective, it will be possible to identify specific initiatives for integrated retrofits.
In highly specific use cases, new approaches could be explored to reduce the installation and integration cost related for the combined installation of Solar PV, Home Storage and V2X charging. Early-stage experience has shown that the integration of AC-DC conversion technologies across the different voltage levels could be a solution for reducing PV and EV integration costs in certain use cases, such as isolated houses or rural areas (up to 30%-50%[3]). From that perspective, we would suggest identifying how the application cases can be addressed through Horizon Europe or similar calls in the areas of R&I identified above.
[1] For example, in California, a study has shown that “the real strength of grid-integrated vehicles in mitigating the duck curve is in avoiding large system-wide ramping, as seen in figures 3(c) and (d). In the V1G-only case, down-ramping and up-ramping are both mitigated by more than 2 GW/h by 2025. In the case with a mix of V1G and V2G vehicles, however, substantially larger gains are seen. Both down-ramping and up-ramping are substantially mitigated, by almost 7 GW/h, equivalent to avoiding construction of 35 natural gas 600 MW plants for ramping mitigation”. “Clean vehicles as an enabler for a clean electricity grid”, Jonathan Coignard, Samveg Saxena, Jeffery Greenblatt, Dai Wang, 2018
[2] Debunking the myth of the grid as a barrier to e-mobility, Eurelectric 2021 https://cdn.eurelectric.org/media/5275/debunking_the_myth_of_the_grid_as_a_barrier_to_e-mobility_-_final-2021-030-0145-01-e-h-2DEE801C.pdf
[3] Calculations made by Dcbel on real pilot home data in England