Octopus prepares to drive EVs into Balancing Mechanism

Octopus Electric Vehicles has announced it is preparing to enter a fleet of 130 cars into the Balancing Mechanism as part of its Powerloop vehicle-to-grid charging project.

The Powerloop project, led by Octopus Electric Vehicles and Octopus Energy, was launched in 2018 to enable Nissan Leaf drivers within UK Power Networks’ licence areas to earn money by exporting power back to the grid during periods of peak demand using Wallbox’s bi-directional Quasar charger.

The project is being funded by the Department for Business, Energy and Industrial Strategy (BEIS) and the Office for Zero Emissions Vehicles (OZEV), with Innovate UK acting as delivery partner. Energy Saving Trust, Open Energi, CPS and Guidehouse are also partners on the project.

Fiona Howarth, chief executive of Octopus Electric Vehicles, said: “The rise of electric cars not just cleans up our roads, but also provides a huge amount of battery storage – with cars typically parked up for 90 per cent of the time.

“Vehicle-to-grid tech allows us to store the green energy in our cars for when we need it most – and the Octopus Powerloop trial is a market leading demonstration of doing this with real drivers using cars on their driveways to power the grid.

“To do this at scale, EVs will participate in the largest energy flex marketplace – the Balancing Mechanism. It is hugely exciting that we are forging that path here in the UK – setting the bar for a globally smarter energy system.”

The Balancing Mechanism, which National Grid Electricity System Operator (ESO) uses to balance supply and demand in close to real time, is currently dominated by large thermal generators, in particular, combined-cycle gas turbines.

The expansion of the Powerloop project will mark the first time that a fleet of electric vehicles providing vehicle-to-grid charging has entered the market. It will test whether the current system is able to facilitate the participation of resources that are many orders of magnitude smaller than the current players, with the ESO waiving its usual size thresholds to enable the trial.

The project consortium has been working with the ESO to simulate the qualification and participation of electric vehicles via existing routes to market and allow them to enter the Balancing Mechanism within the next few months.

Isabelle Haigh, head of national control for National Grid ESO, said: “Electric vehicles are playing a key role in helping the transport and power sectors decarbonise, with EV smart charging and vehicle-to-grid technology set to bring significant flexibility to the grid as Britain transitions to net zero.

“Our Future Energy Scenarios forecasts up to 45% of households engaging with V2G services by 2050, potentially unlocking significant additional capacity on consumers’ driveways.

“We’re excited to be a part of a project that is blazing a trail for EVs to fulfil this potential and actively participate in the Balancing Mechanism. Powerloop is a great opportunity to understand how small-scale flexibility opportunities can help us balance the grid and is another example of the benefits of widening participation to new players in the market.”

“Alex Schoch, head of flexibility at Octopus Energy Group, commented: “We are so excited to be one of the first small-scale energy resources to lay the foundations to participate in the Balancing Mechanism. Our Powerloop project has gone from strength to strength as our customers have got stuck in becoming part of the local energy supply chain.

“The Balancing Mechanism offers a lot of possibilities for a project like Powerloop to show the real benefits of small-scale flexibility and domestic demand-side response. By involving everyone in the future grid system we can clean it up quicker and easier than ever before.”