As interest in electric vehicles rises again amid the war involving the United States and Israel and Iran, major countries are moving faster to use EVs as core infrastructure in domestic energy systems, industry officials said.
Automakers and other sources said efforts are expanding in South Korea, the United Kingdom, the United States, Japan and the Netherlands to treat EVs as power assets, not just transportation.
The push centers on vehicle-to-grid, or V2G, technology, which links EV batteries with the power grid so electricity can flow both ways. V2G can be implemented in EVs equipped for bidirectional charging and discharging, along with power control and communications functions.
Under the model, vehicles charge during low-demand periods such as late at night and supply electricity back to the grid during peak demand. The approach can improve supply-demand balancing and energy efficiency, while owners receive incentives such as discounted charging fees and opportunities to earn revenue.
V2G is drawing particular attention in places with a high share of renewable power, including parts of Europe and South Korea’s Jeju Island, where solar and wind output can swing sharply by weather and time of day. In those regions, EVs using V2G are seen as a way to improve the economics of renewables and stabilize the grid.
◆ Global V2G race intensifies as countries build access and rules
The U.K. is widely viewed as among the most advanced in commercializing V2G services, lowering barriers for EV owners through simplified procedures such as dedicated service offerings.
Last year, British energy company Octopus Energy launched what it described as its first commercial V2G package, bundling an EV lease, installation of a V2G charger and an electricity plan. Owners can participate by simply plugging in, without going through separate and complex power-selling transactions.
The package also offers incentives tailored to Britain’s high electricity prices, including fully waiving charging fees if the EV remains connected to a V2G charger for a set minimum time, drawing a strong response from local owners.
The Netherlands is running what it calls Europe’s first large-scale, city-level V2G demonstration model, the Utrecht Energized project, linking EVs, V2G charging stations and local solar systems.
Utrecht, the country’s fourth-largest city, has solar panels on 35% of its buildings, which can lead to frequent daytime overproduction. EVs using V2G store surplus electricity in their batteries and supply it to the grid when needed. The system automatically decides and manages charging and discharging based on real-time supply and demand.
In the United States and Japan, where disasters often damage power grids, efforts are also growing to position EVs as key energy infrastructure.
California is a leading example, with wildfire, extreme heat and aging infrastructure making blackout risks persistent. The state’s Public Utilities Commission is testing how quickly power can be restored by linking EVs to local grids. Research has also found that if all EVs projected to be on the road by 2035 — about 14 million — were used, they could supply uninterrupted electricity to all households in the region for three days.
Japan is likewise promoting EVs as a central element of disaster-response power infrastructure, a need that gained urgency after the 2011 Great East Japan Earthquake caused about 160 trillion won in damage. During the 2024 Noto earthquake in Ishikawa Prefecture, EVs were deployed to provide emergency power to homes as well as evacuation shelters and hospitals. Japan’s government has also included, in its purchase-subsidy evaluation criteria, measures such as signing disaster cooperation agreements with local governments to maximize EV use.
◆ Hyundai Motor Group leads Korea pilot as public-private council launches
In South Korea, moves to commercialize V2G using EVs are gaining momentum.
Hyundai Motor Group stands out, running pilot services to build a V2G ecosystem and verify technology based on dedicated EV models and bidirectional charging.
Since December, Hyundai Motor Group has been testing 55 EVs, including the Ioniq 9 and EV9, on Jeju Island to verify the stability of links between charging infrastructure and the power grid. With a high share of renewable generation such as solar and wind, Jeju is seen as well suited for V2G, including storing and supplying surplus electricity using EV batteries.
Work is also underway to prepare rules for commercialization. A V2G public-private consultative body launched under the Ministry of Climate, Energy and Environment brings together central and local governments, power-sector institutions, automotive and ICT companies, and academia. The group is discussing a mid- to long-term roadmap covering electricity pricing plans, settlement and compensation methods, legal revisions and technical standards.
Under current rules, EVs are not clearly defined as participants in the power market or as “distributed energy resources,” leaving limited legal basis to formally recognize electricity supplied to the grid. Standards also remain to be set on who can participate in power transactions and how compensation for supplied electricity should be calculated.
Last month, Climate Minister Kim Sung-hwan cited “expanding V2G” as one of seven innovation projects at a presidential town hall meeting on Jeju. He described energy storage systems, including EV batteries, as a key energy source to complement renewables and pledged bold and swift change.
An industry official said Korea needs to speed up detailed institutional design alongside pilot services for V2G commercialization to gain traction. The official added that commercialization could accelerate the shift to EVs and help expand strategic energy assets at the national level.
* This article has been translated by AI.
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