Volkswagen Plans To Tap Electric Car Batteries To Compete With Power Firms
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Volkswagen’s expansion in electric cars will open up new business opportunities in storing and managing energy, encroaching on business currently dominated by utilities and energy firms, chief strategist Michael Jost said on Thursday.
Electric car batteries could be used to stabilize the energy grid by charging the battery in times of excess supply and selling electricity back to the grid at times when supplies of electricity from wind and solar power are low, Jost said.
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“By 2025 we will have 350-gigawatt hours worth of energy storage at our disposal through our electric car fleet. Between 2025 and 2030 this will grow to 1 terawatt-hours worth of storage,” Jost told journalists in Berlin.
“That’s more energy than is currently generated by all the hydroelectric power stations in the world. We can guarantee that energy will be used and stored and this will be a new area of business.”
The German carmaker is not alone in looking into this field. German utility E.ON has been working with Japanese carmaker Nissan to develop so-called vehicle-to-grid (V2G) services.
Volkswagen is launching the ID:3 electric car this year. A basic version will cost less than 24,000 euros ($27,000) in Germany, once green car tax breaks and incentives are deducted, putting electric cars on par with combustion-engined variants.
Questions & Answers
Q.What is Volkswagen's core strategy for using electric car batteries to compete with energy firms?
What is Volkswagen's core strategy for using electric car batteries to compete with energy firms?
Volkswagen plans to use electric car batteries to stabilise the energy grid. They will charge batteries during times of excess supply and sell electricity back when wind and solar power supplies are low, according to chief strategist Michael Jost.
Q.How much energy storage capacity does Volkswagen expect to have from its electric car fleet by 2030?
How much energy storage capacity does Volkswagen expect to have from its electric car fleet by 2030?
Chief strategist Michael Jost stated that by 2025, Volkswagen expects to have 350-gigawatt hours of storage from its fleet. This is projected to grow to 1 terawatt-hour of storage between 2025 and 2030.
Q.Is Volkswagen the only company exploring vehicle-to-grid services, or are others also involved?
Is Volkswagen the only company exploring vehicle-to-grid services, or are others also involved?
No, Volkswagen is not alone in this field. The article mentions that German utility E.ON has been working with Japanese carmaker Nissan to develop vehicle-to-grid (V2G) services, indicating broader industry interest.