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.
Here’s what you need to know about V2G and electric vehicles.
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: 1) both the EV and the charging station have the necessary technology, 2) the electric utility implements a V2G program, and 3) 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).
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 systems, batteries, smart thermostats, and other household appliances with bidirectional charging.
