Smart and vehicle-to-grid charging will enable 60 per cent more electric vehicles (EVs) to connect to the existing electricity network, Ofgem has concluded in a new report.
It says the benefits of “flexible” charging will be even greater if fast chargers become commonplace – allowing six times more EVs to connect to the existing power grid.
Ofgem set out the findings in the last of a series of five Future Insights papers released since October 2016.
The regulator said the report showed how smart and vehicle-to-grid charging could cut costs for consumers by reducing the need for expensive new power stations and additional grid capacity.
To help facilitate the uptake of flexible charging, Ofgem has also announced plans today (23 July) to conduct a significant code review to explore potential changes to forward-looking network charges and grid access arrangements.
It is already undertaking a review of residual network charges which it launched in August last year.
Ofgem executive director for systems and networks, Jonathan Brearley, said: “Ofgem is working with the government to support the electric vehicle revolution in Britain which can bring big benefits to consumers. Our reforms will help more users charge their electric vehicles and save them money.
“The proposals we have announced today will also harness the benefits of electric vehicles and other new technologies to help manage the energy system and keep costs down for all consumers.”
David Smith, chief executive of the Energy Networks Association, commented: “This welcome initiative by Ofgem is fundamental to making sure that the regulatory framework is up to date, and that consumers are able to see all the benefits from their electric vehicles while helping the network companies to deliver them at the lowest cost.”
“Electric vehicles are a key component of the transition to a smarter, cleaner energy system – both in terms of their impact on our energy networks and the opportunities they create for managing the grid in a smarter way that is cheaper for bill payers.
“We therefore share Ofgem’s drive to make sure that the future energy system is fair for all consumers, especially for those who may be vulnerable or struggling to pay their bills.”
A recent report published by WWF found that smart and vehicle-to-grid charging could reduce the cost of accommodating EVs on the power grid by up to a half by 2030.
Earlier this month National Grid raised its forecasts for the number of EVs on Britain’s roads to up to 10.6 million by 2030 and 36 million by 2050 in its latest Future Energy Scenarios report.