How Electric Vehicles Can Support Grid Resiliency in the Age of Renewables

As the amount of renewable energy on the grid increases, utilities are adopting new, decentralized solutions to help prevent grid strain and power loss. Electric vehicles (EVs) are a key element in this effort. Despite the sudden shift in federal policies in the United States, utilities continue to introduce new grid management tools that leverage the energy storage capabilities of EVs.

More renewable energy for the U.S. grid

Leading U.S. corporations played an important role in boosting the profile of wind and solar power on the nation’s grid. The membership organization Clean Energy Buyers Association recently announced that 2024 was a 10-year milestone for its members. From 2014 to 2024, its members collectively procured more than 100 gigawatts of clean energy. That is equivalent to 41 percent of all clean energy capacity additions to the U.S. grid in the same period.

The data also shows that momentum for corporate clean energy procurement continues to grow. “Energy customers announced 21.7 gigawatts in voluntary procurement deals last year alone, making 2024 the highest year to date,” according to the association.

Fine-tuning EV charging to improve grid resiliency

The strong showing by renewable energy is a bonus for EV drivers and fleet managers seeking to optimize their use of zero-emission technology. Though EVs have no tailpipe emissions, they still need to shake free of emissions related to fossil fuel power plants.

Some utilities are recognizing that EVs can decrease their use of fossil energy on the grid if they recharge during off-peak hours while energy demand is lower, like overnight, when they may also qualify for off-peak rate discounts. Off-peak charging also benefits the utility by shaving peak demand and relieving strain on the grid.

The leading California utility Pacific Gas and Electric, for example, notes that lower demand during peak periods “helps ensure that cleaner forms of energy are being supplied by minimizing the need for fossil-fuel plants.”  

At the end of last year, the utility launched a pilot project aimed at enabling residential, commercial and agricultural EV drivers to plan for off-peak charging, with a ripple effect on their use of renewables. “Through this pilot, you can check price trends a week ahead and plan to use energy when prices are lower to save,” according to Pacific Gas and Electric.

The Hourly Flex Pricing pilot is scheduled to run until the end of 2027. It provides participating ratepayers with a seven-day advance forecast of hourly variations in their electricity rates. The forecast is locked in one day in advance, providing drivers and fleet managers with time to plan their charging schedule with the most up-to-date information on rates.

To make the pilot as seamless as possible, the utility also enlisted software vendors to provide automated scheduling information. Earlier this week, the United Kingdom-based software firm Kaluza announced it is participating in the pilot. The company’s app-based software integrates rate discounts with the availability of clean energy to manage charging for customers.

“Kaluza’s platform optimizes EV charging to periods of lower electricity demand and higher renewable energy availability, empowering customers to reap financial rewards while supporting the transition to a resilient, decarbonized grid,” according to Kaluza.

The additional benefits of vehicle electrification

Kaluza’s new role in the Hourly Flex Pricing pilot complements its participation in another pilot project with Pacific Gas and Electric funded by a California Energy Commission grant program called Responsive Easy Charging Products with Dynamic Signals (REDWDS). The project leverages new bidirectional EV charging technology. The firm Wallbox is contributing its bidirectional charger to the project. The technology allows EV owners to release excess electricity from their batteries back into the grid on request and provide emergency back-up power to their building when needed.

As with the Hourly Flexible Pricing program, the REDWDS project encourages EV owners to schedule their charging sessions during off-peak hours when more renewable energy is available, while also collecting rewards for exporting excess electricity back to the grid.

Kaluza’s software integrates driver preferences, real-time grid data, and dynamic pricing structures to accomplish sustainable EV charging alongside cost savings and support for a more resilient grid.

An EV battery can also substitute for a home or commercial battery storage system, saving additional costs. “EVs store around 70 kilowatt-hours in their battery — sufficient to power an average home for three days, significantly longer than most stationary batteries,” according to Kaluza.

In addition to testing the benefits of bidirectional charging in general, the REDWDS project is also designed to assess how low-income households can be encouraged to switch to an EV. Half of the 330-vehicle fleet in the program is committed to low-income communities.

The EV difference

Pacific Gas and Electric is also providing incentives for customers to adopt bidirectional charging in a separate, broader Vehicle-to-Everything pilot program.

As with the Kaluza partnerships, this program enables EV owners to use their battery for emergency backup power. They can also charge their vehicles at low-rate periods and routinely use the EV battery to power their building during high-rate periods. And they can earn additional incentives by sending electricity back to the grid.

That is an impressive technological feat to pull off considering that, even after more than 100 years of automotive history, conventional vehicles equipped with internal combustion engines have never integrated with building or grid power systems. Meanwhile, EVs are beginning to integrate with other systems after barely 10 years on the mass market. 

To date, EVs still only account for about 9 percent of the vehicles on U.S. roads, according to a report from the consumer intelligence firm JD Power. But they already have a positive influence on grid management and resiliency, even as more renewable energy surges into the nation’s power generation profile. 

As for the shift in U.S. policy, the bottom line for fleet electrification is strong, so long as federal tax credits remain in place. Removing the tax credits will increase the up-front cost of EV adoption, but new technologies like seamless hourly rate scheduling and bidirectional charging — in combination with incentives from utilities and the increased availability of renewable energy on the grid — will continue to support the switch to electric mobility.