Government and Ofgem publish smart charging action plan
Wed 18 January 2023
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The Government and Ofgem have published an action plan for smart charging which sets out the steps they will take to deliver energy flexibility from electric vehicle (EV) charging and provide '"affordable, green power". Meanwhile, funding has been allocated to a number of innovative projects through the Government's V2X Innovation Programme.
The action plan highlights actions in three key areas to:
- make smart charging the affordable, convenient choice for consumers: increasing consumer confidence in smart charging and providing appropriate protections for a positive experience
- provide the right business landscape for electric vehicle smart charging products: regulations, standards and innovation for safe goods and services that give consumers choice, and work for the charging market and energy flexibility
- create 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
New arrangements made by Ofgem to deliver the Market-Wide Half Hourly Settlement (MHHS) Programme is designed to facilitate the uptake of smart charging through market incentives, in addition to removing barriers for V2X.
The smart charging action plan was partly informed by a call for evidence which concluded in 2021 on the 'Role of vehicle-to-X energy technologies in a net zero energy system'. V2X requires smart charging capability in order to work but smart charging offers significant benefits independent of the existence of any V2X initiatives.
The Government has also announced the winners of successful projects under the V2X (vehicle-to-everything) Innovation Programme which aims to address barriers to enabling energy flexibility from bi-directional electric vehicle charging. The programme is part of the £65 million overarching Flexibility Innovation Programme which seeks to enable large-scale widespread electricity system flexibility through smart, flexible, secure, and accessible technologies and markets.
17 projects received support funding through the programme worth up to £235,000.
The Zemo Partnership-convened EV Energy Taskforce is specifically highlighted as “a trusted expert group” and worked with Government and stakeholders to establish a consensus on a 'no regrets' pathway to electrifying road transport. The Taskforce's study ('Charging the Future: Drivers for Success') highlighted the importance of smart charging as part of the essential elements of a functioning ecosystem that will meet the requirements of EV users over the next ten years. The crucial role of industry is highlighted within the plan together with a commitment to evolve the Taskforce as the market develops.
The Taskforce concluded that smart charging is expected to bring significant benefits to the electricity system and that, through it, £2bn can be saved in distribution network reinforcement costs by 2050.
The Taskforce found that there is still a need to tackle a number of issues such as around data and communications to enable dynamic smart charging.
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