A key component of decarbonisation is how electrification integrates across different sectors, such as energy, transport, and industry, this is called sector coupling. In fact, one study has argued that decarbonisation targets might not be reached without sector coupling.[1] By modelling these interactions, the most efficient pathways for leveraging renewable energy sources across various sectors can be identified, ultimately supporting a more sustainable and interconnected energy system. Vehicle-to-grid (V2G) technology plays a crucial role in this integration, enabling electric vehicles (EVs) to not only draw energy from the grid but also contribute energy back, creating a dynamic, flexible energy network that enhances both the decarbonisation of transport and the resilience of the overall energy system.
Eurelectric, the European electricity association, has published a Report Plugging into potential: unleashing the untapped flexibility of EVs. This report highlights the flexibility of electric vehicle (EV) batteries and how harnessing this potential as part of a broader strategy can reduce carbon emissions. While many see Vehicle-to-Grid (V2G) technology as the ultimate solution to address grid balancing challenges, the report suggests that we should first focus on what we have now—unidirectional smart charging, which helps manage when EVs charge and when to reduce power. V2G is a promising next step, but it will only work once essential elements like regulations, tax policies, renewable energy capacity, and grid upgrades are in place.
Unlocking the benefits of Vehicle-to-Grid Technology
Demand management
Vehicle-to-Grid (V2G) is an exciting, emerging technology that transforms electric vehicles (EVs) into more than just a means of transport. V2G’s introduction of bidirectional charging technology allows EVs to send power back to the grid, helping to keep electricity supplies stable and reduce pressure during peak demand times. The benefits extend beyond the gird as well as V2G can also connect vehicles to homes and buildings, offering a flexible way to manage energy use.
Energy Storage Solutions
EVs, particularly those with large batteries, offer considerable storage capacity. They can act as backup power during emergencies, supply energy during peak demand periods, and support load flexibility. In this way, there’s huge potential for electric fleet vehicles and heavy-duty electric vehicles (eHDVs) to contribute to grid flexibility. Furthermore, they help integrate renewable and decentralised energy sources into the grid. These benefits can help delay the need for costly grid upgrades, ultimately contributing to more affordable energy rates.
Reducing Grid Infrastructure Investments
Additionally, by efficiently managing the grid and using existing tools like EVs for flexibility, EVs can help reduce the need for costly grid infrastructure investments. Instead of the projected €67 billion in annual spending by grid operators between 2025 and 2050, these measures could bring the cost down to €55 billion each year.[2]
Strom Resilience
A similar function is called vehicle-to-home or V2H. As the name suggests, this allows an electric car to directly power your home in the event that there is a power outage. In scenarios where continuous electricity supply is essential – say, a medical device that needs to be used daily – V2H can allow a home to use the electrical energy stored within a vehicle’s battery to run all the essential appliances within. On a typical 30kWh a day, this could allow a home to run independently for a number of days, depending on your battery size or longer, if you were to ration your use and reduce to 10 kWh a day.[3]
Current EV trends in Ireland
Before we can fully realise the benefits of V2G technology, it’s essential to first address the decline in EV uptake in Ireland. This report comes at a time when Ireland’s EV uptake must be accelerated. In 2024, Ireland experienced a 23.6% decline in new electric vehicle (EV) registrations, dropping from 22,852 in 2023 to 17,459.[4] This contrasts with the UK, where battery electric vehicles (BEVs) registrations represented nearly one-fifth of all new car sales.[5]
With just over 2,500 public chargers in Ireland in comparison to countries like Denmark, which has 18,000, and Finland, with 3,600 the lack of charging infrastructure remains an issue. Rural regions, in particular, are seeing slower EV adoption due to limited charging options. On top of this, rising living costs are affecting consumer confidence, making EVs feel less affordable for many and slowing down the shift to cleaner transportation.[6] Another significant hurdle is misinformation—more than half of people think EV batteries only last up to 100,000km, which simply isn’t true. In fact, many manufacturers now offer warranties up to 160,000km,. plus, they can be recycled, something a lot of people don’t realise as there is not enough information available.
Despite these challenges, there are reasons to be optimistic about the future of EV sales in Ireland, with signs of recovery expected in 2025. The ZEVI initiative is set to expand infrastructure significantly, adding 131 high-powered charging stations along motorways, as well as further funding for urban and regional chargers.[7] With improved range and affordability EVs are poised to unlock solutions to grid resilience and energy affordability when coupled with demand management measures.
What can be done to promote the uptake of EVs?
The Irish government wants one million electric vehicles on the roads by 2030 under climate budget plan.[8] However, a recent AA Ireland survey shows that Ireland has a long way to go in reaching its EV adoption targets. Only 22% of people feel the government is doing enough to help with the switch to electric vehicles.[9] The government has extended the VRT relief on electric vehicles (EVs) until the end of 2025 which was originally set to expire in December 2023. As a result, EVs valued up to €40,000 will remain exempt from paying VRT, while a reduced, tapering relief will continue to apply to vehicles priced between €40,000 and €50,000. These measures reflect the Government’s continued support for the transition to cleaner, more sustainable transport however, more investment is needed in Irelands EV infrastructure, grid infrastructure and cross-sector policy co-ordination to effectively deliver decarbonisation goals.
The used EV market in Ireland is expanding. Demand for used EVs on DoneDeal is also up 29% in the past year.[10] Used-EVs are now 11.2% cheaper than comparable diesel cars and 12.7% cheaper than equivalent hybrid models on a like-for-like basis.[11] Used-EVs are still dearer than used-petrol cars, ; however, the gap is narrowing, from 30% in 2022 to just 10.7% in the second half of 2024.[12] While this data indicates that the used EV market is expanding, and financial incentives that create a more vibrant secondary market by reaching a broader market, particularly those looking for a more affordable, used EV still have a role.
[1] Gea-Bermúdez, J. et al. (2021) ‘The role of sector coupling in the green transition: A least-cost energy system development in northern-central Europe towards 2050’, Applied Energy, 289, p. 116685. doi:10.1016/j.apenergy.2021.116685.
[2] Plugging into potential: unleashing the untapped flexibility of EVs – Eurelectric EVision
[3] How electric cars can power your home and save you money
[4] Ireland: 23.6% decline in new EV registrations | European Alternative Fuels Observatory
[5] UK Accelerates Into the Electric Era: 2024 EV Sales Hit New Records | EV.com
[6] Ibid
[7] Infrastructure | Zero Emission Vehicles Ireland
[8] gov.ie – Ireland’s National Energy and Climate Plan 2021-2030
[9] Irish EV Revolution: AA Ireland Survey Unveils Truths Behind EV Adoption
[10] Used-electric vehicle market showing ‘signs of recovery’
[11] Ibid
[12] Ibid