Thanks to bidirectional charging, electric vehicles have more to offer than simple transportation. They can also serve as flexible energy storage systems, and automakers are looking at ways to capitalize on this, both for the benefit of their bottom line as well as for vehicle owners’ energy bills.
Volvo, one of the leading automakers in the world, has recently announced its plans to establish an energy business around electric vehicles (EVs) and their batteries. The company, on Thursday, revealed the formation of Volvo Cars Energy Solutions, a new business that aims to offer energy storage and charging-related technologies and services.
The idea of using EVs and their batteries for energy storage is not new. Both Mercedes-Benz and Tesla were pioneers in this field with the establishment of their respective Mercedes-Benz Energy and Tesla Energy businesses back in 2015. More recently, General Motors has also joined the action with its new business GM Energy. It is highly likely that other automakers will follow suit as they continue to roll out more EV models.
One offering that is expected to become increasingly popular in the years to come is the use of an EV’s battery to power homes during peak hours when energy prices are high. The battery can then be recharged during off-peak hours when prices are low, or in some cases, using solar power. Additionally, the battery could also be utilized to provide power when grid power is down, such as during a severe storm.
Related Post
Volvo Cars Energy Solutions aims to tap into this potential and offer solutions to make the best use of EV batteries. The company plans to equip its upcoming 2024 EX90 electric mid-size SUV with all the necessary hardware and, over time, develop smart software that will allow the vehicle to determine the ideal time to send power back to the home or grid. Individuals who contribute energy back to the grid may also be compensated, benefiting both consumers and energy firms.
Volvo believes that this approach could also lead to reduced required grid investments for energy firms, as the bidirectional charging system would help balance the energy demand and supply. Moreover, the software developed by Volvo ensures that there is always a minimum state of charge in the vehicle, ensuring that it is available for use if needed.
The initial trial for Volvo Cars Energy Solutions will take place in Gothenburg, Sweden, the company’s hometown. The trial will involve partnering with local energy company Göteborg Energi Nät and real customers. If successful, Volvo plans to expand the trial to more regions in Sweden and eventually across additional countries.
By exploring the potential of bidirectional charging and establishing an energy business, Volvo aims to not only provide an enhanced experience for its customers but also contribute to the overall transition to a more sustainable energy system. With the increasing adoption of EVs, the demand for energy storage and peak load management solutions is expected to grow, presenting a significant opportunity for automakers to diversify their revenue streams.
In conclusion, bidirectional charging offers tremendous potential for electric vehicles to serve as flexible energy storage systems. Volvo is the latest automaker to recognize this opportunity and has announced the establishment of Volvo Cars Energy Solutions. By equipping its EVs with the necessary hardware and software, Volvo aims to enable vehicle-to-grid energy exchange, benefiting both consumers and energy firms. The initial trial in Gothenburg, Sweden, will help evaluate the viability and scalability of these solutions, with plans to expand to more regions in Sweden and beyond. As the electrification of transportation continues to accelerate, the energy business around EVs is poised for growth, and automakers are keen to participate and capitalize on this emerging market.
