The Regulatory and Political Challenges to V2G

  • Lance NoelEmail author
  • Gerardo Zarazua de Rubens
  • Johannes Kester
  • Benjamin K. Sovacool
Part of the Energy, Climate and the Environment book series (ECE)


In order for vehicle-to-grid to viably provide services to the electricity grid and gain new revenue streams, a proper regulatory framework needs to be in place. From this perspective, there are several obstacles to the implementation of vehicle-to-grid. The regulatory framework of the electricity grid needs to acknowledge and properly regulate energy storage for vehicle-to-grid to contribute to the grid. Additionally, the legal responsibilities, actor roles, and ownership of a vehicle-to-grid system also need to be clarified from a regulatory perspective. Regulation is also essential to the economics of vehicle-to-grid, as it can develop and properly value the ancillary services which vehicle-to-grid provides, and also remove barriers such as double taxation. Finally, the chapter concludes with the political role of government in developing vehicle-to-grid.


  1. 1.
    Castellano Ruz F, Pollitt MG. Overcoming barriers to electrical energy storage: comparing California and Europe [Internet]. Cambridge: University of Cambridge: Energy Policy Research Group; 2016 [cited 2018 Aug 10]. (Cambridge Working Paper in Economics). Report No.: 1629. Available from:
  2. 2.
    Weck MHJ, van Hooff J, van Sark WGJHM. Review of barriers to the introduction of residential demand response: a case study in the Netherlands. Int J Energy Res. 2017;41(6):790–816.CrossRefGoogle Scholar
  3. 3.
    Forrester SP, Zaman A, Mathieu JL, Johnson JX. Policy and market barriers to energy storage providing multiple services. Electr J. 2017;30(9):50–56.Google Scholar
  4. 4.
    Anuta OH, Taylor P, Jones D, McEntee T, Wade N. An international review of the implications of regulatory and electricity market structures on the emergence of grid scale electricity storage. Renew Sustain Energy Rev. 2014;1(38):489–508.CrossRefGoogle Scholar
  5. 5.
    European Commission. Commission Staff Working Document: energy storage—the role of electricity [Internet]. Brussels; 2017 Feb [cited 2018 Aug 6]. Report No.: SWD(2017) 61 final. Available from:
  6. 6.
    EuroBat. Battery energy storage in the EU: barriers, opportunities, services and benefits [Internet]; 2016 [cited 2018 Aug 6]. Available from:
  7. 7.
    Castagneto Gissey G, Dodds PE, Radcliffe J. Market and regulatory barriers to electrical energy storage innovation. Renew Sustain Energy Rev. 2018;1(82):781–90.CrossRefGoogle Scholar
  8. 8.
    FERC. Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators [Internet]. Washington, DC: Federal Energy Regulatory Commission; 2018 Feb [cited 2018 Aug 7]. (8 CFR Part 35 [Docket Nos. RM16-23-000; AD16-20-000; Order No. 841]). Report No.: Order No. 841. Available from:
  9. 9.
    OFGEM. Clarifying the regulatory framework for electricity storage: licensing [Internet]. OFGEM; 2017 [cited 2018 Aug 7]. Available from:
  10. 10.
    European Commission. Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast) (Text with EEA relevance) [Internet]. Brussels; 2017 Feb [cited 2018 Aug 6]. Report No.: COM(2016) 864 final/2. Available from:
  11. 11.
    ENTSO-E. Energy storage and storage services: ENTSO-E position [Internet]. European Network of Transmission System Operators for Electricity; 2016 [cited 2018 Aug 9]. Available from:
  12. 12.
    DOE. Grid energy storage [Internet]. Washington, DC: U.S. Department of Energy; 2013 [cited 2018 Aug 7]. Available from:
  13. 13.
    Bellantuono G. The misguided quest for regulatory stability in the renewable energy sector. J World Energy Law Bus. 2017;10(4):274–92.CrossRefGoogle Scholar
  14. 14.
    Knezovic K, Marinelli M, Codani P, Perez Y. Distribution grid services and flexibility provision by electric vehicles: a review of options. In IEEE; 2015 [cited 2017 Aug 18]. p. 1–6. Available from:
  15. 15.
    Annala S, Lukkarinen J, Primmer E, Honkapuro S, Ollikka K, Sunila K, et al. Regulation as an enabler of demand response in electricity markets and power systems. J Clean Prod. 2018;10(195):1139–148.CrossRefGoogle Scholar
  16. 16.
    Cutter E, Alagappan L, Price S. Impact of market rules on energy storage economics. In: 2009. p. 12.Google Scholar
  17. 17.
    Sakti A, Botterud A, O’Sullivan F. Review of wholesale markets and regulations for advanced energy storage services in the United States: current status and path forward. Energy Policy. 2018;1(120):569–79.CrossRefGoogle Scholar
  18. 18.
    Knezović K, Marinelli M, Zecchino A, Andersen PB, Traeholt C. Supporting involvement of electric vehicles in distribution grids: lowering the barriers for a proactive integration. Energy. 2017;134(Suppl C):458–68.CrossRefGoogle Scholar
  19. 19.
    Olivella-Rosell P, Lloret-Gallego P, Munné-Collado Í, Villafafila-Robles R, Sumper A, Ottessen S, et al. Local flexibility market design for aggregators providing multiple flexibility services at distribution network level. Energies. 2018;11(4):822.CrossRefGoogle Scholar
  20. 20.
    Rosso DJ, Dorgan CS. Arbitration and dispute resolution in the electricity industry. Power Econ. 2002;24–27.Google Scholar
  21. 21.
    Christensen B, Trahand M, Andersen PB, Olesen OJ, Thingvad A. Integration of new technology in the ancillary service markets [Internet]. Parker Project; 2018 Mar (Public Project Report). Available from:
  22. 22.
    Christensen B, Trahand M, Andersen PB, Olesen OJ, Thingvad A. Integration of new technology in the ancillary service markets [Internet]. Frederiksberg, Denmark: Nuvve & DTU; 2018 Mar [cited 2018 Aug 10]. (Electric Vehicle Group). Available from:
  23. 23.
    Wasowicz B, Koopmann S, Dederichs T, Schnettler A, Spaetling U. Evaluating regulatory and market frameworks for energy storage deployment in electricity grids with high renewable energy penetration. In: 2012 9th International Conference on the European Energy Market; 2012. p. 1–8.Google Scholar
  24. 24.
    NUVVE. Cenex Smart Charging & V2G Workshop [Internet]. 2017 Mar 28. Available from:
  25. 25.
    Eid C, Codani P, Perez Y, Reneses J, Hakvoort R. Managing electric flexibility from Distributed Energy Resources: a review of incentives for market design. Renew Sustain Energy Rev. 2016;1(64):237–47.CrossRefGoogle Scholar
  26. 26.
    USEF. USEF: The framework explained [Internet]. Utrecht: The Universal Smart Energy Framework; 2015 [cited 2016 Jan 14]. Available from:
  27. 27.
    Alvehag K, Öhling LW, Östman K, Broström E, Strömbäck E, Klasman B, et al. Measures to increase demand side flexibility in the Swedish electricity system abbreviated version. Eskilstuna: Swedish Energy Markets Inspectorate; 2017. p. 78. Report No.: Ei 2017:10.Google Scholar
  28. 28.
    Geske J, Schumann D. Willing to participate in vehicle-to-grid (V2G)? Why not! Energy Policy. 2018;120:392–401 Sep.CrossRefGoogle Scholar
  29. 29.
    ENISA. Smart Grid Security: Recommendations for Europe and Member States. European Network and Information Security Agency; 2012.Google Scholar
  30. 30.
    ISO. ISO 15118-1:2013—Road vehicles—Vehicle to grid communication interface—Part 1: general information and use-case definition [Internet]. International Standards Organization; 2013 Apr [cited 2016 Jun 20]. p. 65. Available from:
  31. 31.
    CEC. Transcript of the 12/07/16 Vehicle-Grid Integration Communications Standards Workshop [Internet]. Sacramento: California Energy Commission; 2016 [cited 2018 Apr 12]. Report No.: 16-TRAN-01. Available from:
  32. 32.
    IEA, Nordic Energy. Nordic EV Outlook 2018;105.Google Scholar
  33. 33.
    Cuijpers C, Koops B-J. Smart metering and privacy in Europe: lessons from the Dutch case. In: European data protection: coming of age [Internet]. Dordrecht: Springer; 2013 [cited 2014 Jun 16]. p. 269–93. Available from: Scholar
  34. 34.
    Sovacool BK, Axsen J, Kempton W. The future promise of vehicle-to-grid (V2G) integration: a sociotechnical review and research agenda. Annu Rev Environ Resour. 2017;42(1):377–406.CrossRefGoogle Scholar
  35. 35.
    IEA. Global EV Outlook 2018. Paris: International Energy Agency; 2018. p. 143.Google Scholar
  36. 36.
    Kester J, Noel L, Zarazua de Rubens G, Sovacool BK. Policy mechanisms to accelerate electric vehicle adoption: a qualitative review from the Nordic region. Renew Sustain Energy Rev. 2018;94:719–31.CrossRefGoogle Scholar
  37. 37.
    Carley S, Nicholson-Crotty S, Miller CJ. Adoption, reinvention and amendment of renewable portfolio standards in the American states. J Public Policy. 2017;37(04):431–58.CrossRefGoogle Scholar
  38. 38.
    Nordic Council of Ministers, Nordic Energy Research. Demand side flexibility in the Nordic electricity market: from a distribution system operator perspective. Copenhagen: Nordic Council of Ministers; 2017. 72p.Google Scholar
  39. 39.
    Kester J, Noel L, Zarazua de Rubens G, Sovacool BK. Promoting vehicle to grid (V2G) in the Nordic region: expert advice on policy mechanisms for accelerated diffusion. Energy Policy. 2018;116:422–32.CrossRefGoogle Scholar
  40. 40.
    Sovacool BK, Noel L, Axsen J, Kempton W. The neglected social dimensions to a vehicle-to-grid (V2G) transition: a critical and systematic review. Environ Res Letters. 2018;13(1):013001.CrossRefGoogle Scholar
  41. 41.
    Nilsson M, Nykvist B. Governing the electric vehicle transition—near term interventions to support a green energy economy. Appl Energy. 2016;1(179):1360–71.CrossRefGoogle Scholar
  42. 42.
    Niesten E, Alkemade F. How is value created and captured in smart grids? A review of the literature and an analysis of pilot projects. Renew Sustain Energy Rev. 2016;1(53):629–38.CrossRefGoogle Scholar
  43. 43.
    Davies H, Santos G, Faye I, Kroon R, Weken H. Establishing the transferability of best practice in EV policy across EU borders. Transp Res Procedia. 2016;1(14):2574–83.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Lance Noel
    • 1
    Email author
  • Gerardo Zarazua de Rubens
    • 1
  • Johannes Kester
    • 1
  • Benjamin K. Sovacool
    • 1
    • 2
    • 3
  1. 1.Department of Business and TechnologyAarhus UniversityHerningDenmark
  2. 2.Science Policy Research Unit (SPRU)University of Sussex UnitFalmerUK
  3. 3.Universiti Tenaga NasionalKajangMalaysia

Personalised recommendations