Vehicle-to-Grid (V2G) technology is progressing in places such as China, and the U.S. and Europe may not be far behind to integrate the tech and experience the benefits. Fleet operators and CPOs stand to benefit the most with the additional revenue streams that can be generated by V2G capabilities. While widescale adoption is still on the horizon, progress is being made for both entities as smart charging management software and hardware provide V2G integrations.
BloombergNEF’s 2025 Electrical Vehicle Outlook recently noted that the value of smart charging and potential vehicle-to-grid (V2G) revenue is looking to be greater in markets such as China, where electric vehicles (EVs) are a small share in total electricity demand. According to Bloomberg, this is because there is a bigger overall electricity market and V2G revenue slows down more gradually in this market when the energy stored in EV fleets get utilized by the power system. With this development, CPOs and fleet operators in other markets can still begin to consider V2G opportunities and the benefits it offers to their business and the electrical grid.
V2G technology allows EVs to send power to the grid, enabling bidirectional power flow that turns EVs into energy storage systems to support the grid during high demand. For both the United States and Europe, the technology has yet to reach wide-scale adoption, but progress is being made by auto manufacturers to integrate the technology into more EVs. At the same time, regulators and utilities are also identifying ways to support V2G technology. The promise of V2G is compelling, when you consider recent reports noting how V2G could save EU energy systems 22 billion EUR a year by 2040.
What are the benefits of V2G for the electrical grid?
While the mentioned costs savings are notable, there are many benefits to V2G technology for the grid. This includes reliability, environmental attributes, and the incorporation of renewable power sources.
- Grid Stability and Reliability: By allowing EVs to send energy back to the grid, V2G brings more stability and reliability to energy infrastructure. V2G helps to reduce peak energy demand, and balance energy loads.
- Environmental Benefits: Utilizing EV batteries for grid storage and load balancing reduces the need for fossil fuel-based energy generation. This allows utilities to utilize cleaner energy sources that help to decarbonize the electrical grid.
- Integration of Renewable Energy: EVs can store excess energy from renewable energy sources such as wind and solar, and they can also deploy needed power when these same sources are low.
Fleets can utilize V2G for additional revenue streams
One of V2G’s immediate utilization opportunities in the United States and in Europe is with EV fleets. Vehicle-to-grid technology allows fleet operators to generate new revenue streams that can be utilized to offset the cost of electrification. Fleet owners oversee dozens, if not hundreds of vehicles, and the ability to control multiple and often large EV batteries with predictable schedules makes fleets the ideal place to implement V2G at scale.
The income generated from sending power back to the grid from fleet vehicles offers operators the opportunity to lower their energy costs and ultimately reduce the total cost of ownership of the EV fleet. In order to be successful, fleet owners need to integrate smart charging platforms to capitalize on revenue from V2G. Such software already improves the economics of fleet ownership by monitoring, managing, and adjusting energy consumption. V2G-capable equipment will allow fleet operators to seamlessly incorporate V2G into their electrification planning.
CPOs’ Role in V2G & Enabling Smart Charging:
Aside from fleet operators, Charge Point Operators (CPOs) also have a role to not only support V2G adoption, but redeem the financial benefits of doing so as well. The first step is to establish better coordination and optimization of energy on-site, and that is achievable with smart energy management platforms. These platforms control the charging and discharging of EV batteries, and thus allow electric vehicles connected to EV chargers to become virtual power plants (VPPs). This immediately bolsters grid power and can balance supply and demand.
Turning to V2G technology can postpone or even eliminate the need for costly infrastructure upgrades as well. EVs become “batteries on wheels”, and during peak demand times, CPOs can accommodate demand side response by leveraging V2G to balance loads with the vehicles and EV chargers that support V2G technology. V2G-capable charging requires the appropriate hardware and software mix. Paired with the right chargers, energy management software can then communicate between the vehicles, charging equipment, consumers, the grid and third party service providers. The ISO 15118 and OCPP is the industry standard that defines the communication protocol and is what enables V2G capabilities. This is where smart EV charging software can effectively integrate these protocols into the V2G process for CPOs.
What will enable widespread adoption of V2G in the US and EU?
Currently, only a few vehicle models support bi-directional charging, and many of those that do are limited to V2H/V2B (vehicle-to-home or vehicle-to-building). However, major auto manufacturers are developing projects to address V2G within new bi-directional charging features. Ford, Tesla, Volvo, and Nissan are just some examples of the auto manufacturers producing EVs with vehicle-to-everything (V2X) capabilities. At the same time, charger manufacturers need to support adoption by producing more models that support this promising technology. Lastly, utilities must also make adjustments to be able to utilize this capability and offer it to their customers.
Conclusion
Movement in V2G in markets such as China provide a positive outlook for markets elsewhere to capitalize on the technology. Fleet owners and CPOs have an immediate opportunity to lead widescale adoption that not only supports the grid, but their revenue streams as well. The initial steps to incorporate V2G will be integrating the right software to provide the needed capabilities to balance energy loads and begin communication with the utilities and others. Industry wide, identifying the right business models to encourage both EV owners and business to adapt V2G will also support more widespread adoption of the technology.
