United Kingdom considers V2G incentives for electric vehicle manufacturers

The United Kingdom government is reviewing its Zero-Emission Vehicle (ZEV) mandate to potentially reward carmakers that integrate vehicle-to-grid (V2G) technology into electric vehicles. V2G technology allows cars to charge when electricity is inexpensive and discharge power back into the grid during peak demand, or even power individual homes (V2H).

The National Energy System Operator (NESO) estimates that V2G could provide 1.2 GW of flexible power by 2030, potentially rising to 41 GW by 2050. This capacity could cover more than a quarter of the UK's peak demand, helping to balance the grid during periods of low renewable energy generation and reducing reliance on gas-fired power plants.

Under the proposed consultation, manufacturers could receive credits for each V2G-equipped car sold. These credits might allow a company to sell one additional petrol vehicle without incurring fines for missing ZEV targets. However, some campaigners have expressed concern that these incentives could inadvertently lead to more petrol-powered cars being sold.