Vehicle-to-grid technology, often called V2G or VTG, enables electric vehicles to store energy and send power back to the electrical grid. Although V2G technology is not yet widespread, analysts predict the market will grow significantly, reaching approximately $46.21 billion by 2033, with an annual growth rate of 47.42% from 2024 to 2033.
As technology advances and the demand for electricity increases—not just from EVs but also from other technologies like artificial intelligence data centers—V2G technology is expected to become standard in EVs and EV charging stations.
What is vehicle-to-grid (V2G) technology?
Vehicle-to-grid (V2G) technology enables bidirectional transfer between electric vehicles and the power grid. Through vehicle-to-grid charging, EVs not only pull energy from the grid but also send power back, acting as dynamic energy storage units.
V2G electric vehicles can reduce energy costs by charging during off-peak hours and discharging stored power when electricity prices are high. They also serve as a backup during power outages, powering homes or businesses when the grid is down.
The transportation sector is a major contributor to greenhouse gas emissions. By storing excess energy and releasing it during peak demand, V2G electric vehicles help reduce dependence on fossil fuels and support a cleaner, more resilient energy system.
How does V2G work?
V2G operates using “bidirectional power transfer” technology, also known as bidirectional charging. This allows electricity to flow in two directions instead of just one. When an EV charging station and an EV are both equipped with bidirectional capabilities, the station can transfer electricity from the vehicle's battery back to the electrical grid. However, V2G is only possible if:
Both the EV and the V2G charger have the necessary technology,
The electric utility implements a V2G program, and
The station host opts in.
Similar to demand response programs, V2G requires compatible equipment and the station host's agreement.
V2G technology is part of the broader bidirectional power transfer family known as vehicle-to-everything (V2X), which also includes vehicle-to-home (V2H) and vehicle-to-building (V2B).
V2H allows EVs to power homes during outages or store renewable energy, while V2B extends this capability to larger commercial structures, supporting energy efficiency and grid stability. EVs such as electric school buses have large batteries, and their storage capacities allow them to be backup power sources. These technologies enhance sustainability by integrating EVs into smart energy systems and connected environments.
The International Standards Organization’s ISO 15118-20:2022 standard outlines the communication messages and sequence requirements for bidirectional power transfer.
Who is using V2G
ISO 15118 is still a new technology and not yet standard for electric vehicles, but more companies are planning for V2G. Ford, for instance, offers this capability on the F-150 Lightning and has partnered with national solar installer Sunrun to enable F-150 Lightning drivers to use their all-electric truck as a power backup during outages. We can expect other automakers to add V2G capabilities to their vehicle lineups soon.
Sunrun recently teamed up with Maryland’s largest utility, Baltimore Gas and Electric Company (BGE), to operate the United States’ first V2H virtual bidirectional EVs owned by BGE’s customers. BGE will use the customers’ Ford F-150 Lightning trucks to deliver power to the truck owners’ homes during peak demand times this summer. This collaboration between Sunrun, BGE, and Ford supports Maryland’s power grid.
Why V2G is important
V2G and its related technologies, V2B and V2H, play a crucial role in enhancing electrical grid stability, managing renewable energy, and providing emergency power availability.
Several regions are already addressing V2G through legislation. Maryland, where Blink Charging’s global headquarters is located, is the first state in the United States to pass legislation on V2G technology.
In April 2024, Maryland passed HB 1256, requiring utilities to allow EVs with bidirectional chargers to connect to the distribution grid.
This bill not only mandates electric utilities to permit V2G connections but also supports the creation of "virtual power plants."
Virtual power plants combine the energy storage and distribution capabilities of EVs, home solar power systems, batteries, smart thermostats, and other household appliances with bidirectional charging.
V2G improves electrical grid stability
Electricity demand is rising, and electric utilities may struggle to keep up as they expand the grid to meet new requirements. By tapping into the stored power in electric vehicle batteries when they are not in use, utility providers can better meet this growing demand. This is especially effective when combined with Energy Management Systems and managed charging strategies like Peak Load Management (also known as Demand Side Management), Demand Response, and load shifting. These systems ensure the electricity grid in a given region can meet peak demand. V2G could play a crucial role in this type of grid management in the future. Learn more about Demand Response and the Blink Network.
