Electric vehicle grid integration to become $700 million market
As plug-in electric vehicles adoption picks up pace within the next few decades, the electrification of transportation is expected to increase load
According to a new report from Navigant Research, vehicle grid integration technologies and services are estimated to achieve a market size of $700 million by 2026.
As plug-in electric vehicles adoption picks up pace within the next few decades, the electrification of transportation is expected to increase load.
For electric utilities, actively managing and spreading the load across infrastructure assets and time via vehicle grid integration technologies can prevent infrastructure upgrade costs and may also decrease grid balancing costs.
“Opportunities for vehicle grid integration deployment vary significantly by location depending on the confluence of a growing PEV population, an advanced grid, penetration of renewable resources, and an encouraging grid regulatory structure,” says Scott Shepard, senior research analyst with Navigant Research. “Additionally, an increased focus from utilities and grid operators to enroll PEVs in grid services and demand response programs will have significant impacts on the vehicle grid integration market.”
Navigant Research estimates that the combined global market for regulation and demand response (grid services) is currently near 198 GW. By 2026, global increases in renewables penetration and the advance of smart grid organizational structures are expected to bring the grid services market to more than 516 GW. According to the report, vehicle grid integration will grow in the next 10 years but account for only a minute portion of global grid service capacity by 2026.