Today's dilemma stems from a belief that decarbonization and economic growth cannot be solved simultaneously, even less solve for each other. For most, improving one means trading off the other. At its root are interlocking social, economic, political, and technical forces: a complex and established energy system that is deeply resistant to change. If only it had been the 'bad guys' fault or irrevocable laws of physics, the answer would be undeniably simple: an easy fix or hopelessness. Fortunately, the introduction of destabilizing forces into complex systems can catalyze their transformation. In the energy system, electric vehicles (EVs), more specifically bidirectional EV's, are just that!
In addition to creating load (i.e., drawing electricity from the grid), EVs will become mobile generators (i.e., providers of electricity on wheels) with significant advantages over other energy storage solutions. While discussions involving EVs as distributed energy resources have become ubiquitous, few have grasped the profound economic benefits that EVs could bring to marginalized populations across the globe. EVs can profoundly impact the speed of the energy transition by changing energy economics and moving the locus of control toward vehicle owners.
The integration of bidirectional EV’s into energy systems, whether big or small, grid-tied or not, in developing or developed nations, could lower the cost of energy, and, in some cases, lower it enough to create access to affordable electricity and transportation to those who have neither today.
The vehicle owner will maintain control of the vehicle, and, therefore, of the value it generates by integrating it into the grid.
The bulk of the value generated from vehicle-to-grid integration will remain with the vehicle owner, the balance will be shared amongst other value chain actors, including aggregators, utilities, and OEMs.
With the owner now in control, tensions will arise, especially among those with historic jurisdiction. While they may slow progress initially, the realization that the environmental, social and economic impacts will benefit everyone will prevail. Technical progress, novel business models and regulatory changes will provide the necessary means to unleash EV’s disruptive forces, lifting the poor and turning the traditionally left-behind into key enablers of global decarbonization.
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