Utility Week

UTILITY WEEK | 30TH AUGUST - 5TH SEPTEMBER 2019 | 17 Policy & Regulation EVs are key to net zero The UK's now legally binding target of hitting net zero emissions by 2050 renews the focus on electric vehicles and the critical part they can play in delivering this. Chief executive's view Fiona Howarth, Octopus Electric Vehicles E lectric vehicles (EVs) could vastly reduce the UK's transport emissions, which account for one-third of the country's total carbon output and have remained stubbornly high since the 1990s. While some EV batteries are charged by non-renewable energy sources, even the most "polluting" EVs have a markedly lower environmental impact than fossil fuel-powered cars. Indeed, the European Environment Agency estimates that EVs are, on average, 30 per cent greener than petrol or diesel vehicles and the lifecycle emissions of a typical EV could be cut by at least 73 per cent by 2050. EVs must be a core part of the UK's commitment to going green. Saving the grid Aside from the environmental impacts, EVs bring sev- eral other advantages, including: 1. Enabling us to increase our generation from renew- able sources, by being flexible with our consumption of – and even storing – intermittent energy. 2. Mitigating some of the infrastructure upgrades that may be required in the next few decades as we decar- bonise our economy, again by using the system in a smart and optimised way. Renewables generate a huge amount of power. The big challenge is matching this generation with our demand, which presents a major infrastructure project for the government. As the UK progresses towards a system totally powered by renewables, National Grid estimates that about 1.3GW of energy storage will be required (equivalent to a nuclear plant's capacity) to fully benefit from this. Until that storage capacity is available, energy balance issues remain. When renewable sources far exceed demand, the grid pays suppliers to stop generating (over the past six years this has amounted to more than £491 million in constraint payments) – a cost ultimately passed onto consumers. Equally, when demand outstrips supply, we have various sources of energy generation – o˜en using fossil fuels – that we can quickly ramp up to ensure we have adequate electricity supply, and prices spike. Typically, demand for the UK's energy usage peak is between 4-7pm every day. However, if we can move our consumption to different times of the day, and even store the over-supply of renewable energy, then we can limit the need for fossil fuel generation and unlock a greener economy. For many of us, EVs will be the first significant source of flexible energy demand in our homes. We can proac- tively choose when we consume energy from the grid, which means that we can select not to charge during peak times. At Octopus Energy, for instance, we offer time-of- use tariffs such as AgileOctopus and OctopusGo. And to make this as easy as possible, smart charging tech companies such as Ohme have integrated with these tariffs to automatically start charging your car when the rate is cheapest. EVs and smart charging innovation can now help bal- ance the load on the energy system, and help consumers manage their electricity bills through vehicle-to-grid (V2G) technology. V2G also allows EV batteries to be used to support the energy system – and send energy back to the grid – at peak times. In June, Octopus EV launched a partnership with Wallbox to bring the world's smallest, lightest residential V2G charger to the UK. As part of Octopus Powerloop, drivers can lease a bundle of a Nissan LEAF, a Wallbox charger, a green energy tariff from Octopus Energy and VIP support – and can also earn £30 a month by enabling their car battery to share electricity back with the energy system at peak times and charging it at off-peak times. A study for the government estimates the benefits of a smart energy system to be up to £40 billion to 2050, by minimising grid infrastructure upgrades and enabling a more consumer-led way of balancing demand. The future Looking forward, it is important that the automotive and energy sectors work closely together to ensure a smooth transition to clean, green transport powered by our energy system. Of course, many people will charge up at home, at work and while they do their normal day-to-day activi- ties. EV charge points are rapidly appearing on our roads and at customer destinations. At the end of May 2019, for the first time, the number of places your can publicly charge your EV surpassed the number of petrol stations on the road (8,984 at the time of writing, versus 8,400 respectively). The energy system will have to grow and adjust to support the growth of EVs. And as it does, EVs can help balance the increased amounts of renewables in the system through tech such as V2G, leading to a healthier grid and climate.

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