Electric Vehicles and Energy Communities: Exploring Vehicle-to-Grid Potential for a Sustainable Future

Electric Vehicles and Energy Communities: Vehicle-to-Grid Opportunities and a Sustainable Future

Abstract: The importance of renewable energy sources and energy independence is increasing globally, with emission reduction and energy optimization at the forefront of the EU agenda. Electric and hybrid vehicles can serve not only as transportation means but also as active components of the energy grid. This study analyzes one year of empirical data from a hybrid vehicle using linear programming to optimize energy return under various settings. The objective is to assess the contribution of vehicles to grid stability and the operation of energy communities. Additionally, it compares the energy sources utilized in the EU and outlines the current range of vehicle models capable of vehicle-to-grid (V2G) technology. The findings indicate that hybrid vehicles can function effectively as energy storage units, especially at the fleet level. V2G technology may enhance battery production development and promote secondary markets through recycling degraded batteries for buildings or renewable energy systems. The article explores the opportunities and challenges of V2G technology, particularly its role in energy grids and sustainable transportation.

1. Introduction

The 21st century presents numerous challenges, with reducing carbon footprints and energy dependence being among the most critical, especially in light of the current geopolitical landscape. European countries have made significant strides in addressing these issues, prioritizing emission reductions and energy consumption optimization. As a result, many manufacturers and service providers are developing innovative solutions to meet these emerging demands.

Electromobility is crucial for energy security in Europe. For oil-dependent nations, electric vehicle adoption can diversify domestic energy production, positively impacting greenhouse gas emissions and enhancing energy security. Such countries can leverage new energy sources, such as wind, solar, or hydropower. However, the widespread adoption of electric vehicles places considerable pressure on the electricity grid, with projections indicating a need for 709 TWh of electricity by 2030.

Challenges arise from the varying capacities of electrical networks. In the Netherlands, for instance, approximately 3,000 locations will be able to connect 100 electric vehicles simultaneously for charging by 2025, potentially overwhelming the local tram network. Similarly, California’s grid will require upgrades to support the rapidly growing number of electric vehicles. Additionally, the electrification of HVAC systems has further increased electricity demand.

Despite these challenges, electric vehicles hold promise as energy storage devices. The battery capacities of vehicles available on the market and those projected for 2030 are expected to reach 29 TWh, increasing to 186 TWh by 2050. This enhanced capacity can be utilized in various ways. While many focus on improving vehicle range, there is also potential for integrating vehicles with buildings powered by renewable energy sources, allowing vehicles to act as energy storage units. Technologies like vehicle-to-grid (V2G), vehicle-to-home (V2H), and vehicle-to-X (V2X) exist to facilitate this integration.

This study centers on V2G technology, highlighting its significance for enabling bidirectional energy flow between electric vehicles and the power grid and its role in developing sustainable energy communities. The article presents an overview of V2G technology and energy communities in the EU, assesses the current state of vehicle manufacturers regarding V2G solutions, and analyzes one year of data from a hybrid vehicle with random usage patterns to determine how much energy can be returned to the grid or a building.

2. Concept – Integration of Electric Vehicles into Vehicle-to-Grid System

The integration of V2G electric vehicles represents a transformative concept for the electricity system. This technology enables electricity from vehicle batteries to be returned to the grid or buildings, allowing vehicles to act as energy storage devices and help balance grid imbalances. This approach promotes energy storage, lowers carbon footprints, and enhances energy security.

V2G integration creates new opportunities, positioning vehicles as integral components of the electric grid, which will encompass not only energy storage but also intelligent charge management systems to facilitate energy flow among producers, consumers, and vehicles. This approach transcends merely compensating for peak demand.

The implementation of V2G technology faces challenges that are fundamental to the broader adoption of electromobility and the establishment of smart cities. As the number of electric vehicles increases, the infrastructure for buildings and electrical networks must evolve. The growing vehicle population will unveil the benefits and development potential of V2G technology.

3. Basic Concept – Energy Communities

The emergence of energy communities is set to elevate energy management within the European Union. These communities will harness electricity from renewable sources and distribute it among their members, ensuring clean energy and energy security for all participants. The EU has established various directives to guide member states in implementing such solutions, which will reduce electricity consumption and dependency on traditional grid systems.

Transitioning to sustainable energy sources imposes significant challenges on local communities, necessitating the installation of renewable energy generation infrastructure and the modernization of aging electricity networks. This shift will not only present technical challenges (such as implementing V2G technology and smart charging systems) but also foster social, financial, and cultural transformations.

Energy communities are grassroots organizations where members collectively generate and distribute electricity. This approach necessitates the development of new business models, as detailed in recent research. The regulatory and technological context is rapidly evolving, and energy community business models are currently in experimental and developmental phases, requiring continuous adaptation to legislative changes.

Electric vehicles can serve as flexible energy storage units within the grid, facilitated by V2G’s bidirectional charging capabilities. Achieving fully independent energy communities will require that vehicles are charged using renewable energy sources, primarily solar and wind energy. This integration allows vehicles to support intermittent energy sources in the grid. However, the rapid growth of electric vehicles presents challenges for both aging electricity grids and modern yet undersized grids.

To ensure that the increase in electric vehicles minimally impacts the grid, the challenges must be addressed from policy and energy community perspectives. Different stakeholders, including users, vehicle manufacturers, and energy suppliers, must collaborate on developing charging infrastructure that aligns with urban planning efforts, ultimately facilitating vehicle integration into energy communities.

4. Household Electricity Consumption and Renewable Energy in the EU

According to EuroStat data, household electricity consumption across EU member states totaled 10.1 million terajoules in 2022, the lowest figure since 2016. This represents a 7.7% decline from 11 million terajoules in the previous year.

In terms of energy sources, natural gas (30.9%), electricity (25.1%), and renewable energy (22.6%) were the primary contributors to EU energy consumption, with heating homes and buildings accounting for 63.5% of total energy use.

Further analysis indicates that residential electricity consumption in the EU decreased by 1.5% between 2012 and 2022. However, trends varied among member states, with Malta experiencing a 63.9% increase, while Belgium and Greece saw reductions of 17.7% and 13%, respectively.

Member states have made significant strides in sourcing energy from renewable sources, with their scale and potential varying widely. The integration of renewable energy has notably influenced household electricity consumption patterns. In 2022, renewable sources contributed to 22.6% of total household energy use, up from 21.2% in 2021, suggesting a gradual shift towards cleaner energy sources.

5. Electricity Consumption Methodology in Energy Communities

Energy communities represent an EU initiative aimed at creating new methods for generating and redistributing electricity primarily based on renewable sources. These local initiatives allow citizens to collectively produce and distribute electricity, often taking the form of cooperatives or non-profit organizations, enabling participation in clean energy projects.

The EU established the energy community model in 2019 as part of the Clean Energy for All Europeans Package. This initiative introduced the concept of Citizen Energy Communities (CECs) and Renewable Energy Communities (RECs), emphasizing the importance of community-owned projects.

Household electricity usage is influenced by these frameworks in various ways, including increased on-site generation, which allows community members to produce their own renewable energy and reduce dependence on traditional suppliers, ultimately lowering energy bills. By sharing electricity within the community, energy consumption can be optimized, leading to more efficient energy use and reduced reliance on the grid.

Energy communities often target households requiring affordable energy access. Legislative support is crucial for realizing the full potential of these communities, as the EU’s legal framework fosters their growth and market participation. Currently, there are approximately 9,252 energy communities in the EU, with Germany housing nearly half of them, while several countries have few or none.

EU lawmakers anticipate that by 2050, local communities will contribute significantly to the EU’s renewable energy production, aligning with the vision of a decentralized energy system.

6. Short Overview of Vehicle Manufacturers (V2G)

Given the essential role of energy distribution among community members, it is evident that energy communities are integral to the future of energy management. As electricity consumption is not uniform, there are peak demand periods that require careful energy management.

Electric vehicles can serve as effective storage solutions, allowing excess solar-generated energy to be stored for later use within the community. This vehicle-to-grid technology represents a significant opportunity for vehicle manufacturers, as vehicles shift from mere transportation means to valuable assets in energy systems.

The adoption of V2G technology is crucial for vehicle manufacturers, and while progress is being made, European manufacturers lag behind in providing adequate models. Recognizing that vehicles will increasingly function as components of smart cities, manufacturers must focus on enhancing the stability of the grid and offering economic benefits to vehicle owners.

The strength of V2G technology lies in its ability to foster synergy between energy communities and sustainable energy management. Vehicles equipped with V2G technology can store excess energy during low demand periods and redistribute it during peak times. However, some manufacturers currently lack models that can fully exploit V2G capabilities.

7. Tested Vehicle and Data

This article examines data from a BMW 225XE hybrid vehicle to assess its energy storage and recharging capabilities using theoretical and retrofit solutions based on one year of user data. The vehicle features a 1499 cm3 three-cylinder petrol engine paired with a 7.6 kWh battery. In electric mode, it can travel 41–45 km on a single charge.

8. Mathematical Solutions About Vehicle-to-Grid Applications

Vehicle-to-grid solutions introduce a novel approach to energy management, whereby vehicles can simultaneously consume, store, and transmit electricity. Studies indicate that integrating electric vehicles into the grid can enhance load stability. Effective V2G programs can minimize peak load and improve grid stability.

Optimizing V2G systems can involve various methods, including genetic algorithms and reinforcement learning. These techniques can aid in developing charging strategies to mitigate peak loads and predict costs. Multi-objective optimization can enhance network load management through efficient charging and discharging schedules.

Considering individual user habits is essential for optimizing V2G systems. Without incentives for users and compensation for battery degradation, there may be reluctance to connect vehicles to the energy network. Socializing V2G technology is paramount for its successful adoption.

While technology remains a key concern, numerous challenges persist, including the complexity of calculations and the need for significant computational resources for real-time applications. The dynamic nature of power systems suggests that agile methods, such as heuristic algorithms, may be beneficial.

9. Data Analyses and Visualization

This research used annual charging data from a hybrid vehicle whose user did not follow a specific charging strategy. The vehicle did not have V2G technology, but the analysis aimed to estimate the potential electricity recovery using linear programming based on user behavior.

Linear programming (LP) is a widely utilized method for optimization problems, focusing on maximizing or minimizing an objective function while adhering to constraints. This method has been applied in various fields, including engineering, economics, and logistics.

Previous studies have successfully employed linear programming to analyze V2G systems, highlighting its suitability for tackling vehicle-to-grid challenges. The following chapters will present and analyze one year of data from the hybrid vehicle, drawing conclusions regarding its energy consumption patterns.

10. Critics and Future Work

The research demonstrates the potential for recycling electrical energy from a hybrid vehicle’s battery, even with limited capacity. However, the practical implications of the annual energy recycled from such a vehicle necessitate further examination.

Electricity consumption varies significantly across EU member states. The average household electricity consumption was approximately 1.584 MWh in 2022, with notable discrepancies between countries such as Romania and Sweden.

The results suggest that while the energy contribution from a single hybrid vehicle may seem modest, the cumulative effect within an established energy community could be substantial. This highlights the potential for small-capacity batteries to support critical applications, such as powering medical equipment during emergencies.

Looking ahead, further research should focus on fleet-level dynamics and the impact of rapidly advancing battery technology on energy independence. V2G solutions could incentivize battery manufacturers to produce longer-lasting batteries, enhancing their role in energy systems.

The secondary market for batteries also holds promise, as degraded batteries can serve as storage solutions for buildings or renewable energy sources, extending their lifecycle and creating new business opportunities in energy storage.

11. Summary

Addressing carbon footprints and energy exposure is essential today. Hybrid and future electric vehicles will play a vital role in mitigating these challenges. These vehicles are reshaping urban landscapes and energy frameworks, paving the way for smart cities and energy communities.

V2G technology is a significant advancement, but regulatory frameworks remain underdeveloped, and not all manufacturers are incorporating this technology into their vehicles. The rise of energy communities in the EU has prompted manufacturers and energy suppliers to embrace these innovations.

This study underscores the potential of hybrid vehicles, despite their limited battery capacity, and highlights the competitive disadvantages faced by European manufacturers. The integration of electric and hybrid vehicles into smart cities and renewable energy systems is crucial for future development.

Key areas for further exploration include:

1. Scalability of V2X technologies: Investigating the maximum size of energy communities and associated challenges.
2. Integrating AI for energy management: Exploring AI and machine learning methods for flexible energy communities.
3. Establishing standards and regulations: Developing guidelines for energy sharing, battery swapping, and business models.

By leveraging real vehicle data and existing literature, this article lays a foundation for future research on V2G technology and related regulatory and standardization efforts.