Harnessing the Power of Electric Vehicles

The analysis finds that VGI, particularly bidirectional charging (V2G), can generate annual system savings between $1.8 billion and $11.7 billion by 2045. These savings primarily stem from reduced requirements for electricity delivery infrastructure and utility-scale storage. The report recommends that California mandate bidirectional charging capabilities in new EVs and update battery warranties to cover discharging to encourage widespread adoption.

• Vehicle-grid integration (VGI) is projected to generate annual electricity system savings in California by 2045, ranging from $1.8 billion (1 percent of system costs) in low-enrollment V1G scenarios to $11.7 billion (5 percent of system costs) in high-enrollment V2G scenarios.
• Bidirectional managed charging (V2G) provides significantly higher incremental benefits than unidirectional managed charging (V1G) alone. In a medium enrollment scenario, shifting from 0 percent V2G to 12.5 percent V2G nearly doubles annual savings from $4.2 billion to $7.7 billion.
• The primary source of VGI savings is the reduced need for electricity delivery infrastructure, specifically by lowering peak demand on the distribution system. High levels of V2G could reduce net peak demand by up to 33 percent for residential and 10 percent for commercial sectors in 2045.
• VGI helps match charging demand with variable renewable energy production, which reduces the need for utility-scale thermal generation and energy storage. Savings in storage are primarily driven by a reduced requirement for long-duration storage (minimum 24 hours).
• The grid benefits of V2G can be achieved with minimal impact on battery wear. In a medium VGI enrollment scenario, the average vehicle in the V2G pool would export power equivalent to driving an additional 700 miles per year, representing less than a 7 percent increase in battery use for a vehicle traveling 10,000 miles annually.
• On a per-vehicle basis, annual grid savings in a medium enrollment scenario range from $503 for all-V1G to $1,177 for all-V2G. Over a vehicle's average lifetime of 12.5 years, cumulative grid savings per vehicle are estimated between $6,300 and $14,700.

APA

Houston, S., Reichmuth, D., & Specht, M. (2025). Harnessing the Power of Electric Vehicles. Union of Concerned Scientists. https://www.ucs.org/sites/default/files/2025-06/harnessing-the-power-of-evs-full-report.pdf

Chicago

Houston, Samantha, David Reichmuth, and Mark Specht. Harnessing the Power of Electric Vehicles. Union of Concerned Scientists, 2025. https://www.ucs.org/sites/default/files/2025-06/harnessing-the-power-of-evs-full-report.pdf.

Wikipedia

{{cite report |last1=Houston |first1=Samantha |last2=Reichmuth |first2=David |last3=Specht |first3=Mark |title=Harnessing the Power of Electric Vehicles |publisher=Union of Concerned Scientists |date=June 2025 |url=https://www.ucs.org/sites/default/files/2025-06/harnessing-the-power-of-evs-full-report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{houston2025harnessing, author = {Houston, Samantha and Reichmuth, David and Specht, Mark}, title = {{Harnessing the Power of Electric Vehicles}}, institution = {Union of Concerned Scientists}, year = {2025}, month = jun, url = {https://www.ucs.org/sites/default/files/2025-06/harnessing-the-power-of-evs-full-report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }