Future of vehicle-to-everything (V2X) communication guided by government legislation and regulations

Vehicle-to-Grid (V2G) Technologies in Europe: Progress and Challenges

Vehicle-to-Grid (V2G) technologies, which allow electric vehicles to store and feed back electricity to the power grid, are gaining traction in Europe. However, the pace of adoption varies across the continent, with some countries leading the way while others face obstacles.

In some European nations like Denmark and Great Britain, double taxation or levies for V2G is an issue, hindering its widespread adoption. On the other hand, countries such as Spain and Sweden have taken steps to eliminate such barriers in their tax regimes.

Participation of V2G in these markets remains predominantly within pilot projects due to market rules and metering requirements. However, France and Belgium have independent aggregation frameworks for V2G and other Distributed Energy Resources (DERs) to participate in wholesale energy and balancing markets.

The United Kingdom's Energy System Operator (ESO) and France's Transmission System Operator (RTE) factor in V2G in their resource adequacy scenarios, recognising its potential role in grid stability.

Most European countries are engaging in pilot projects for V2G, often receiving government innovation funding. However, a lack of specific V2G policies is a common hurdle.

Smart meters are crucial for the rollout of V2G technologies. While countries like Denmark, Italy, Spain, Norway, and Sweden have near 100% smart meter rollout, many are older models lacking the newest functionalities.

The commercialisation of V2G technologies depends heavily on electricity prices and network tariffs. Time-of-use (TOU) and dynamic tariffs are essential for encouraging consumers to shift their electricity usage to off-peak periods. However, while TOU tariffs are available in most assessed countries, the uptake of these tariffs is relatively low.

Consumer protection mechanisms, such as price caps, while ensuring affordability, tend to obscure the true price signals necessary for the optimal operation of dynamic pricing, thus diluting the economic incentives for flexibility.

A Europe-wide effort is essential to ensure that V2G technologies are effectively integrated into the energy system, thereby enhancing grid reliability and driving forward the transition to a more sustainable and efficient energy future.

Besides Germany and the UK, France, the Netherlands, and the Scandinavian countries, especially Sweden and Finland, are among the most progressive European governments promoting V2G technologies. These countries are focusing on early regulation, infrastructure investment, testbed programs, and harmonization of approval processes for autonomous and connected vehicles to accelerate market adoption across Europe. They emphasize safety, innovation, and cross-border cooperation within the EU framework to support V2G development and deployment.

Finally, ongoing discussions are taking place to address double taxation through the revision of the EU's Energy Taxation Directive, a move that could help remove barriers to the widespread adoption of V2G technologies in Europe.

Future of vehicle-to-everything (V2X) communication guided by government legislation and regulations