German automaker Volkswagen is collaborating with Belgian network operator to introduce electric vehicles into the power grid. This is coming on the heels of rising energy cost which has seen electric vehicles gain wider acceptance.
Brussels-based startup Elli and re.alto owned by Elia and which is the charging unit of Volkswagen recently reached an agreement (MOU) to incorporate electric vehicles into the electricity system. Elli and re.alto was formed in 2018, and manages the automaker’s charging and energy endeavours. This also includes Volkswagen’s Flexpole quick-charging network in Europe.
This partnership is designed to ascertain the hindrances to EV integration also develop an action plan on how to power the electricity grid with EV batteries especially in order to regulate the cost of electricity and minimize rising energy prices.
This partnership adopts a vehicle-to-grid model allowing users to transfer the electricity stored in their EV battery back into the grid, and accessing this energy when it is required. According to Volkswagen, the partnership will maximize the vehicle-grid-model through price incentives for drivers who contribute to the electricity grid stored energy when their vehicle are parked.
The collaboration Volkswagen collaboration is coming at a time when the industry has realised the inevitable need for partnerships between the mobility and electricity sector due to the exponential rise in the use of electric vehicles globally. While speaking on the company’s vision the CEO of Elia Group, Chris Peters elucidates: “We want to enable the increasing number of EV users to charge their EVs while keeping the electricity system in balance.” This move will undoubtedly ensure that the use of electric vehicles won’t be detrimental for the power grid on the long run.
Volkswagen remains the world’s largest automaker. It currently boasts of a large collection subsidiaries, business units and even partnerships similar to Elli focused on facilitating the development of electric vehicles.
The German company also formed PowerCo in July cater to its global battery business, covering the sourcing of raw materials and recycling. By 2030, Volkswagen would have invest over $20 billion to build six new battery plants across Europe. The first battery plants will be unveiled in Salzgitter, Germany, and Valencia, Spain.
Volkswagen Group recently increased its initial $2 billion investment which runs till 2027 to finance Electrify America one of its subsidiaries so as to facilitate the establishment of super fast charging stations in Canada and the United States.