UK smart charging plans could save consumers £1,000 per year

The UK government has announced plans for a smart charging revolution, whereby new private charge points will be required to be compatible with smart charging. In addition, the government is also backing innovation with new funding for EV charging solutions providers
Published
January 24, 2023

UK EV charging action plan will require private charge points to be compatible with smart charging

On 17th January, the UK government announced its ‘Electric Vehicle Smart Charging Action Plan’, which it hopes will pave the way for smart charging to become the preferred method of long-duration charging by 2025.

According to a statement released by the government, the plan has three major purposes:

  • To make smart charging the affordable, convenient choice for consumers: increasing consumer confidence in smart charging and providing appropriate protections for a positive experience.
  • To provide the right business landscape for electric vehicle smart charging products: regulations, standards and innovation for safe goods and services that give consumers a choice and work for the charging market and energy flexibility.
  • Deliver an energy system ready for electric vehicle smart charging: accessible tariffs and flexibility services that incentivise smart charging, plus energy system data and tools/measures in place to plan, incentivise and manage risks arising from EV flexibility in the context of wider energy retail, network and market changes[i].

On smart charging specifically, from July this year, all charging points sold to private buyers will have to be compatible with the technology[ii]. Smart charging is so-called as it enables electric vehicles (EVs) to be charged when electricity is cheaper or produced via green methods.

Energy and Climate Minister Graham Stuart said: “We want to make smart charging an easier choice for drivers of electric vehicles, whether that is charging on the driveway, at the workplace, or parked on the street. To do that, we need to build new network infrastructure at pace, using the latest available technologies.”[iii]

Smart charging offers additional benefits in that it can be used in vehicle-to-home (V2H) and vehicle-to-grid (V2G), allowing consumers to power their homes using electricity stored in their electric vehicle or even sell it back to the grid for profit[iv]. Recent studies have found that such solutions could save consumers as much as £1,000 per annum[v].

Source: UK Government referencing Energy Savings Trust

V2G has shown its promise in a trial completed last year by Electric Nation, an Innovation project of Western Power Distribution (WPD). The project recruited 100 Nissan electric vehicle (EV) owners in the Midlands, South West England and South Wales to participate in the V2G smart charging technology trial[vi]. The project enabled EV owners to charge at off-peak times when energy is typically cheaper and greener. Further, “by using V2G, they can sell this energy back into the grid, or use it in their home, to help minimise energy demand at peak times. This can help take the stress off the electricity grid and enable low-cost renewable energy to be used in the home when grid prices and the carbon content of electricity are high.”[vii] In addition, trial participants who had solar panels were also able to charge their EVs with the renewable energy; they were then able to transfer this green energy from their EV to the home at peak times- further reducing demand on the grid. You can read more about the project here.

EV innovators to receive government backing

Such innovation is needed, with recent findings suggesting that the number of EVs in use within the UK is growing faster than expected, and this growth outpacing the installation of charging infrastructure[viii]. The UK government is therefore eager to develop innovative charging solutions and to support this, has announced £16 million of grant innovation funding for flexible energy projects, which will be taken from the £1bn Net Zero Innovation Portfolio.

Just over 600,000 will be allocated to Vehicle-to-Everything (V2X space) projects; V2X enables energy stored in EV batteries to be shared with other devices or energy networks (such as back to the grid). In addition, curb-side V2G options are also being explored. For example, Otaski Energy Solutions is set to receive £229,000 to help fund work in developing a lamppost with a V2G charging point. This would help residents who lack off-street parking, as well as those in ‘blackspots’ without established commercial charging stations.

References

[i] Electric vehicle smart charging action plan - GOV.UK (www.gov.uk)

[ii] Government mandates smart EV charge point roll out | BusinessGreen News

[iii] UK Government sets out plan to make smart EV charging ‘the norm’ by 2025 - edie

[iv] Government smart charging plans could save EV drivers £1,000 a year (evfleetworld.co.uk)

[v] Vehicle-to-grid charging could save EV homeowners £1,000 a year (fleetworld.co.uk)

[vi] Home energy bills reduced by Vehicle to Grid | Electric Nation : Electric Nation

[vii] Ibid

[viii] UK Government sets out plan to make smart EV charging ‘the norm’ by 2025 - edie

Related Insights

Thank you! We'll keep you posted!
Oops! Something went wrong while submitting the form.
Lauren Foye
Head of Reports

Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”

Lauren's Insights