Electric Vehicle (EV) Partnerships: Aligning Incentives to Unlock Value

The briefing outlines how electric vehicles can serve as flexible grid resources through controlled charging (V1G) and bidirectional energy flow (V2G) to improve grid efficiency and reliability. It identifies key barriers to adoption, including unclear utility roles in some states, regulatory structures that favor capacity building over grid optimization, and high start-up costs for fleet owners. The document proposes collaborative models where utilities provide infrastructure support and innovative rate designs, while customers provide data and real estate, to maximize carbon reductions and lower costs for ratepayers.

• Electric vehicles can function as flexible grid resources through controlled charging (V1G), which shifts demand to periods of low electricity use or surplus, and through bidirectional energy flow (V2G), which allows batteries to provide power back to the grid. However, V2G faces technical challenges regarding battery wear and behavioral challenges regarding owner consent.
• Current regulatory environments in many states may discourage grid optimization because utilities can achieve higher returns by building new capacity to support peak load rather than managing EV charging. The document suggests adopting performance-based incentives, similar to those used for energy efficiency programs in 26 states, to reward utilities for grid-beneficial EV management.
• Fleet owners face significant economic barriers, including high start-up costs for procurement, infrastructure installation, and driver retraining. To mitigate these, the document suggests using rate designs, demand response, and smart charging to compensate customers for the grid benefits they provide.
• Collaboration between utilities and large energy customers (corporations and municipalities) can unlock value through several mechanisms: utilities providing financial or practical support for electric vehicle supply equipment (EVSE), customers sharing transportation data for asset planning, and the use of customer real estate to host public charging infrastructure.

APA

World Resources Institute (2019). Electric Vehicle (EV) Partnerships: Aligning Incentives to Unlock Value. https://wriorg.s3.amazonaws.com/s3fs-public/uploads/CPC_EV_Narrative_-_1.11.19_-_CB.pdf

Chicago

World Resources Institute. Electric Vehicle (EV) Partnerships: Aligning Incentives to Unlock Value. 2019. https://wriorg.s3.amazonaws.com/s3fs-public/uploads/CPC_EV_Narrative_-_1.11.19_-_CB.pdf.

Wikipedia

{{cite report |author=World Resources Institute |title=Electric Vehicle (EV) Partnerships: Aligning Incentives to Unlock Value |date=15 August 2019 |url=https://wriorg.s3.amazonaws.com/s3fs-public/uploads/CPC_EV_Narrative_-_1.11.19_-_CB.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2019electric, author = {{World Resources Institute}}, title = {{Electric Vehicle (EV) Partnerships: Aligning Incentives to Unlock Value}}, institution = {World Resources Institute}, year = {2019}, month = aug, url = {https://wriorg.s3.amazonaws.com/s3fs-public/uploads/CPC_EV_Narrative_-_1.11.19_-_CB.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }