NEWS RELEASE - 20 Dec 2023

Analysing the current regulatory frameworks for bidirectional charging in electromobility

A newly released report by smarten and DNV explores what regulatory and political measures are needed for widespread adoption of electric vehicles in EU and UK

Bidirectional charging is in the early stage of development, while Europe’s energy system is increasingly needing flexibility. That is why small-scale solutions, such as demand-side flexibility as a part of V2X technology, might potentially play a crucial role in the world decarbonization by integrating renewables, addressing the generation adequacy issue, balancing demand and supply, and making efficient use of electricity infrastructure.

And that is what really matters for DRIVE2X: to accelerate the shift to mass electromobility deployment through innovative smart charging techniques and technological advancements in bidirectional charging solutions.

But the scaling process of these technologies mostly relies on the creation of an accurate regulatory framework. A newly released report by smartEn and DNV, named “V2X Enablers and Barriers: Assessment of the regulatory framework of bidirectional EV charging in Europe”, analyses the EU and UK electric vehicles landscapes on this particular topic.

The objective of this study is to conduct an assessment of the current regulatory frameworks impacting bidirectional EV charging in different countries across Europe and UK and explore what regulatory and political measures are needed for the technology to transition from pilot projects to widespread commercial adoption. This is of specific interest to the project as DRIVE2X has pilots in three of the geographies covered by this report, specifically in UK, Italy and the Netherlands (complemented by Hungary and Portugal) .

The widespread adoption of V2X is facing several challenges, that will need to be addressed starting from 2024:

  • Taxation Complexities: some countries’ taxation of energy stored in EV batteries during both charging and discharging acts as a barrier, hindering fair rewards for system benefits;
  • Market Access Issues: inconsistent market access and a lack of level playing field across the EU limit V2X adoption. flexible market design and value propositions are essential for overcoming fluctuating flexibility values;
  • Compliance Barriers: outdated compliance requirements, especially regarding Measurement Instruments Directive (MID) for sub-metering and technical standards, hinder V2X integration. The absence of a defined meter data value chain further complicates matters;
  • Limited Local Flexibility Markets: only three of eleven studied countries have operational flexibility markets. The report calls for additional efforts to establish these markets across Europe, emphasizing the need for optimized market designs to leverage electric vehicles’ benefits in reducing distribution network costs.

Read the full report and learn more here.