Unleashing EV Flexibility: A New Era of Savings and Grid Optimization

In a groundbreaking study conducted by Eurelectric in collaboration with EY, new insights have emerged regarding the potential savings for electric vehicle (EV) owners in Europe. The research indicates that EV owners could save between €450 and €2,900 annually by harnessing the power of smart and bidirectional charging. This finding opens a new chapter in the journey toward more efficient and cost-effective electric mobility.

The Financial Incentives for EV Owners

Smart charging technology plays a pivotal role in this financial equation. It allows EV batteries to store excess power during off-peak hours, thereby offering a dual benefit: reducing the overall energy costs for consumers and contributing to the stabilization of the electric grid. The bidirectional charging capability enables EVs to feed energy back into the grid during peak demand periods, mitigating stress on the infrastructure while maximizing the utility of renewable energy sources.

However, despite these advantages, many consumers remain unaware of the potential financial benefits. The study stresses the need for clearer economic incentives, improved access to flexibility markets, and interoperable data within the electric mobility ecosystem to fully realize this potential. As the demand for flexibility in Europe is forecasted to double over the next five years, proactive measures must be taken to encourage wider adoption of these technologies.

The Untapped Power of EV Batteries

By 2030, EV batteries are projected to contribute around 114 TWh of capacity, a figure significant enough to power approximately 30 million households annually. Despite such potential, it remains largely untapped due to barriers in adoption, primarily high entry costs for EVs, which saw a slight decline in sales in 2024 before rebounding in 2025.

Kristian Ruby, the Secretary General of Eurelectric, highlighted that EVs are enjoyable to drive and can help owners generate savings while stabilizing the electricity system. “Consumers need market choices and clear incentives to act,” he stated.

Widespread acceptance of EVs hinges on reducing overall costs, and flexibility can lead to significantly lower operational expenses, making electric vehicles more attractive compared to traditional combustion engines. To achieve this, charging infrastructure is crucial; the report mentioned a 30% increase in public charging points in 2024, totaling over 820,000 units—an encouraging sign but still short of the EU's ambitious target of 3.5 million by 2030. Resolving this gap will require substantial investments, equivalent to the establishment of 8,600 charging points weekly.

Empowering Consumers Through Flexibility

For consumers to take an active role in this ecosystem, the entire infrastructure must promote the view of EVs as more than mere transportation tools. Serge Colle, Global Power Utilities Sector Leader at EY, emphasizes that user-friendly smart charging solutions, demonstrating clear economic advantages, are vital for consumer adoption and engagement.

On the grid side, distribution system operators (DSOs) could save about €4 billion annually through enhanced flexibility, which alleviates infrastructure demands. However, this is contingent upon the implementation of real-time digital monitoring and access to interoperable data, as stipulated in the yet-to-be-implemented EU In-Vehicle Act.

Conclusion

The energy transition in Europe is underway, but tapping into the full potential of electric vehicles requires collective efforts from all stakeholders. By embracing smart and bidirectional charging, and addressing the existing barriers to consumer adoption, a more sustainable and economically viable future is within reach. The onus is on the industry to turn this potential into performance, benefiting both consumers and the power sector alike.