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Hyundai, Kia, BYD and other major automakers are exploring how batteries in electric vehicles can be used to store surplus renewable energy and top up Australia’s electrical grid at critical times, earning power bill credits for their owners.
In one of the biggest trials of its kind in Australia so far, power supplier AGL has begun working with car manufacturers to test technologies that could turn plugged-in electric vehicles into “two-way energy sources”, ready to inject rapid discharges to keep the grid stable and smooth out swings in supply and demand.
AGL general manager of electrification and innovation Jane Butler.Credit: Wayne Taylor
Connecting an electric car to a bidirectional charger, so its battery can feed the grid in peak periods, could be a powerful tool to support decarbonisation of Australia’s electricity system as it shifts from coal to less predictable sources such as wind and solar, energy companies say.
It could also make it more appealing for Australians to make the switch to electric vehicles by giving owners the ability to earn money from selling power in their batteries back to the grid, offsetting their higher upfront cost compared with traditional petrol cars.
The Climate Change Authority calculates that every second light vehicle sold over the next decade must be electric for the Albanese government to meet its new 2035 emissions-reduction target. However, achieving that goal may prove difficult due to a recent slowdown in electric car sales and persistent worries about the cost of living.
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To unlock electric vehicles’ full potential, their owners should think about them not just as cars, but as “home batteries on wheels”, said Renae Gasmier, AGL’s head of innovation and strategy.
Electric car batteries, typically several times larger than household batteries, can store enough energy to comfortably power the average home for around three days, she said. But adding vehicle-to-grid functionality could deliver even greater benefits, enabling the battery to be charged when electricity prices are low and renewable energy is plentiful, and using that energy to power the owner’s home or export surplus power back to the grid.
AGL said its trial, launched in Melbourne on Wednesday, would bring together electricity distribution and network service providers, electric vehicle equipment suppliers and carmakers including Hyundai, Kia, BYD and Zeekr. Other automakers are in talks with AGL about the program but are yet to sign on.
The trial will assess the level of potential savings consumers could expect from using vehicle-to-grid functionality and seek to ease concerns that bidirectional charging may wear on car batteries, causing them to degrade more quickly.
Kia Australia chief executive Damien Meredith said bidirectional electric vehicle charging was a “game-changer”.
“Amid cost-of-living pressures, this unlocks the potential for Kia EV owners to transform their cars into mobile energy assets,” Meredith said.
Other energy companies are also pursuing similar initiatives. Amber Electric, a retailer that enables customers to buy and sell electricity at wholesale prices, launched a vehicle-to-grid trial last year with funding from the Australian Renewable Energy Agency. Some participants in the trial were said to have earned hundreds of dollars in credits a month after feeding power back to the grid at times when prices were spiking.
Origin Energy, the largest Australian power and gas retailer, is building its own new retail offering around vehicle-to-grid technology.
The company this week said it had teamed up with BYD and StarCharge for a trial in which participants would receive a BYD Atto 3 subscription, a vehicle-to-grid bidirectional charger and access to a free charging tariff.
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