Megaproject

Smart Energy International

European Commission Shifts Gears To Support E-Mobility InfrastructureThe European Commission looks set to support the growth in electric vehicles (EVs) and charging points by making it easier to build power connections from chargers to grids, and by giving such projects priority writes Vic Wyman. The idea was floated in the Commission’s action plan for the automotive sector, unveiled on 5 March 2025, along with ideas for boosting the EU battery sector to meet expected demand from EV makers. For the EU, the automotive sector needs to thrive — “It accounts for €1 trillion in GDP, a third of private research and development investment in the EU and it provides direct and indirect employment to 13 million Europeans,” said the action plan. The plan also claimed that the EU’s Alternative Fuels Infrastructure Facility (AFIF) has effectively and efficiently supported the building of recharging and hydrogen refuelling infrastructure. €570 million has been allocated for projects in 2025 and 2026, focusing on heavy-duty vehicles. And in its Sustainable Transport Investment Plan, to be adopted this year, the Commission will remove barriers to financing for recharging infrastructure, according to the action plan. Chris Heron, the secretary general of the E-Mobility Europe trade association, told Enlit that he was cautiously optimistic that the EV battery and charger market could fulfil its promise. He claimed that there were already enough public chargers for EVs on the roads, with 26 of the 27 EU countries having met the EU’s targets: “The idea that we don’t have enough charging is nonsense.” He also welcomed the possible prioritisation of grid connections for chargers. Have you read?Europe’s e-mobility market: Flexibility monetisation and a regulatory action planHow to stimulate Europe’s bidirectional charging market However, Jaap Burger, senior adviser and consultant at the Regulatory Assistance Project, said: “One of the key features of smart chargers is dynamic pricing.” And although there has been a four-fold increase in smart electricity tariffs and services from 2022 to 2025, they are spread patchily around Europe because of the variation in markets and regulatory frameworks for distribution system operators. “This is one of the key barriers that we could and should be addressing.” Aleksandra Klenke, policy officer for sustainable and intelligent transport at the European Commission’s transport and tourism directorate DG Move, said that the commission would publish a new standard for smart and bidirectional charging within a few weeks. However, the projected growth in EVs could be hit by difficulties building enough public chargers, particularly the expensive bidirectional versions able to also return power to the grid to help grid balancing, and connecting them to the grid. The European Commission has a target of 3.5 million chargers by 2030 — 450,000 chargers installed each year, or 8,600 a week, said a new smart charging study by the Eurelectric federation representing more than 3500 European power generation, distribution and supply utilities and the consultancy EY. Currently, said Serge Colle, EY’s global power and utilities sector leader: “The picture is mixed.” The plan faces tax and regulation barriers, a lack of suitable sites, lengthy approvals processes and the difficulties and costs of linking chargers to electricity supplies. V2G chargers are five to 10 times dearer than unidirectional chargers and most are direct current devices rather than cheaper alternating current (AC) chargers. “While AC V2G-capable chargers have recently been launched, they are only compatible with EV models equipped with onboard V2G chargers,” said Eurelectric/EY. Decisions would also be needed on the chargers to be fitted. For example, Steffen Schaefer, head of future cities and mobility at the engineering firm AFRY, said that a 100kW charger with intelligent control could be suitable for a 10 hour charge of an EV, but that installing more-expensive 200kW chargers could provide faster charging, which could be more viable for commercial vehicle owners. Also, 42% of European drivers live in cities with no access to home charging points and their cars are not always plugged in for long enough for battery capacity to be discharged to the grid, said the report. The drivers, often poorer citizens, could be deterred from buying EVs by having to use more expensive public chargers. Although many drivers worry about EVs running out of juice, few use their cars for much more than popping to the shops, with on average cars parked for 23 hours a day. But persuading people to buy EVs requires convenience for drivers, their trust in the charging system and financial incentives, said Tadhg O’Briain, a deputy head of unit in the EU’s energy directorate DG Ener. He said that the European Commission would consider legislation to ensure that those are in place. Price transparency and controls on data sharing are essential, said Nazim Khiari, policy adviser at the Council of European Energy Regulators (CEER). The European Commission also takes into account the large used-car market: “Depending on the country, 75—90% of EU consumers buy only second-hand vehicles.” Although many drivers worry about battery health and repairability, studies suggest that smart charging and bidirectional charging could extend battery life. The dream of quickly swappable EV batteries that could ease drivers’ fears about batteries going flat and allow more efficient operation of public charging stations are likely to remain a dream at least for now. Jaap Burger, senior advisor and consultant at the Regulatory Assistance Project, told Enlit Media that in seven out of 10 EVs in Europe are based on the same platform with the battery forming a structural element that is not easily removable. The Commission also warns of the limited competitiveness in zero-emission vehicle technology and production capabilities compared with rival regions, and expensive batteries and other critical components: “Batteries, which account for 30-40% of value-added of a typical electric passenger car, are a critical battleground for future employment and value creation. Europe needs a cost-competitive domestic cell production and supply chain, also with a view to preparing against supply shocks and crises and protecting economic sovereignty.” For example, it wants EU production of anode and cathode active materials and precursors, cells, and other battery parts. “This also requires investments of European players in battery material mining and refining operations in Europe or overseas. The objective for 2030 is to achieve a European added value of more than 50% along the value chain,” said the action plan. Therefore, the Commission has already announced up to €3 billion from an Innovation Fund for EV battery manufacturing, with a first €1 billion call on 3 December 2024. There is also a €200 million top-up to support innovative battery projects by enabling additional European Investment Bank venture debt in 2025-27. The Commission also promised €1.8 billion in the next two years for EU battery-makers EU from the Innovation Fund. “The Commission will look into possibilities for financing ramping up of European production lines in this context,” said the action plan. Also in the pipeline is possible direct production support for EU battery-makers combined with state aid, as part of a wider EU review of the latter. As the European Commission’s transport and tourism commissioner Apostolos Tzitzikostas told Eurelectric’s recent EVision conference on regulation, investors need regulatory stability and “buyers certainty”. And drivers need convincing. As DG Ener’s O’Briain said at EVision, consumers have traditionally served the energy system, but in future the energy system can serve consumers. Originally published on Enlit World.

powerplant

Mar 13, 2025

Smart Energy International

Ev Batteries Can Provide 114Twh Capacity By 2030 Find Ey And EurelectricAccording to Europe’s electricity sector association, the capacity offered by electric vehicle batteries could rise to as high as 114TWh by 2030, should they be used as flexibility assets to avoid renewable energy curtailment. According to a Eurelectric study, Plugging into potential: unleashing the flexibility of EVs, the 114TWh figure comes from the capability of EVs to avoid curtailment of renewables, an application of EVs that has not yet been tapped into for its full potential. It is the equivalent of 4% of Europe’s annual power supply by 2030 and enough to power 30 million homes annually. This figure is also set to increase by 2040, based on EY modelling in the study, where through vehicle to grid (V2G), more than 10% of Europe’s overall power needs could be stored, reinjecting into the power system when needed. Eurelectric’s figures come as flexibility needs are set to double over the next half-decade, brought on by increasing renewable penetration into the energy system and the electrification of end-use sectors. Smart charging specifically, says the report, could deliver one of the largest, most affordable, scalable and flexible solutions to balance the network at the local level and resolve bottlenecks. Citing a study in Applied Energy, Eurelectric says that up to 6% can be shaved off peak load where proper energy management systems are combined with V2G technology. Moreover, DSOs could benefit from a projected €4 billion ($4.3 billion) in savings annually due to these mechanisms, as higher flexibility partially reduces the need for infrastructure expansion. Citing its 2024 Grids for Speed study, Eurelectric adds that flexibility could be considered an inherent part of the solution to reduce operators’ anticipated annual €67 billion ($71.7 billion) investment bill to €55 billion ($58.9 billion). Despite the significant potential offered by these systems, barriers yet remain. According to the study, V2G will only provide significant day-to-day benefits for grid operators if they can implement smart control and actively control and optimise electricity consumption and charging to make best use of grid integration. Consumers, it adds, lack clear economic incentives to tap these services. Unlocking this potential requires clear price signals, enhanced access to flexibility markets, and interoperable data across the e-mobility ecosystem. Additionally, although EV sales have passed the early adopters stage, high upfront costs remain a barrier and mainstream consumers need to be convinced of the value. On costs, Eurelectric adds that, by providing flexibility, consumers could benefit from much lower running costs, bringing the total cost of EV ownership below that of conventional cars. Charging availability is another source of concern. Public chargers grew by 30% in 2024, reaching more than 820,000 units but must grow even faster to get to the Commission’s 3.5 million target by 2030. This means installing 8,600 chargers per week. Have you read:Eurelectric calls for clean electrification-based European Energy Security StrategyEurelectric: six technologies to speed up Europe’s grids improvements Key to bringing about the benefits of smart and V2G charging, says the study, will be its monetisation. According to the study, flexibility markets and better pricing must reward providers and support trade in the commodity. But first, several mechanisms need to be set in place: • Smart-charging data interoperability and information sharing between the vehicle, DSO and CPO (charge point operator) or aggregator, and standardised communication protocols to link all participants within the ecosystem; • Appropriate investment and regulation, on both the demand and supply sides, to effectively manage flexibility output from weather-dependent resources, such as wind and solar; • Scaled flexibility solutions that adjust electricity supply or demand in response to changing conditions; • Price signals to prompt EV drivers to charge or discharge, relieving congestion on local networks; • The establishment of effective local flexibility markets for DSOs to procure flexibility to avoid network congestion and improve network asset utilisation; • The removal of regulatory hurdles, such as double taxation, for mobile and stationary storage; • The implementation of pending technical standards, such as ISO 15118-20, in vehicles and charging infrastructure, and increased availability of interoperable vehicles and charging infrastructure for bidirectional charging; • Market rules for market participation, enabling DSOs to compensate users for helping to balance the grid with V2G Speaking in advance of the report’s launch, Serge Colle, EY Global Power & Utilities Leader, said that although there are a range of important factors to consider for tapping EV’s flexibility potential, the issue boils down to customer buy-in. “There’s all of these elements, from infrastructure to signals to data interoperability. But all of that ultimately translates back to the customer who trusts that this all has no impact on their convenience, no impact on their equipment… and that they can make money, by keeping the car connected to the grid.” This, says Colle, will be critical: the business proposition to incentivise V2G uptake. “Gotta be the money – which is very appealing.” Colle explained how EY looked across three vehicle types in six markets: compact, family and large vehicles in the UK, Germany, France, Netherlands, Sweden and Spain. “They obviously have differences between markets in terms of cost of the car and the fuel prices and so on. But there is a lot of money to be made,” he said. “If we look at the different numbers across the different markets, across the three vehicle categories, it is very substantial money.” Indeed, according to Eurelectric’s study, an EV owner in Europe, by using both smart charging and bidirectional charging, could save between €450 ($478) to €2,900 ($3,080) every year. This can be achieved by three mechanisms, it says, including: off peak charging, shifting charging from expensive peak hours to low-price periods; time of use (ToU) charging, where savings are amplified under a cost-reflective ToU tariff scenario; V2G or vehicle to home charging, selling back to the grid while benefitting from a ToU tariff. Colle said: “We took average annual electricity prices as a basis to calculate the value of charging when it’s most convenient for the grids, for the load, as well as potentially charging back. But flexibility comes at a much higher price than the average electricity price. So that’s an upside. “At the same time, specifically over here in our [Europe’s] summer, it can be very sunny… so customers can charge very often for free. That’s not just on occasion – that happens a lot. And as we move to more intermittency, it will happen increasingly. “The money is going to be the number one incentive. This has to be told to customers, and they need to be incentivised to go after that number, and they will – it’s what we see in every single market.”

powerplant

Mar 05, 2025

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