The world seems rife with electric vehicles poised to inundate the streets, curbing global emissions and spearheading an environmentally conscious future. Yet, beyond their ecological benefits, they harbor the potential to double as storage devices that prop up the power grid and even generate income for their owners, courtesy of vehicle-to-grid (V2G) technology pioneered by Nuvve Holding Corp. (NASDAQ: NVVE). This San Diego-based global cleantech firm engineers storage systems leveraging EV batteries and consolidates energy and power capacity from multiple EV sources to fashion virtual power plants (VPPs). A VPP can effectively furnish energy to the grid, thereby stabilizing it and thwarting blackouts.
The technology is steadily drawing keen interest from automakers and regulators, who harbor escalating apprehensions regarding the future of the power grid. Presently, the existing network is predominantly deemed as antiquated, decrepit, and inadequately equipped to accommodate the escalating demand. A study discovered that power outages have more than doubled over the past six years in comparison to the previous six. This situation is anticipated to exacerbate as the production of electric vehicles gains momentum. By 2040, the roads could be swarmed by 550 million EVs, constituting over two-thirds of the globally sold passenger vehicles, and encompassing an estimated 10% of total electricity demand in the U.S. and Europe.
An Influx of Capital to Foster EVs
This cognizance has not eluded regulators worldwide, including the U.S. Department of Energy. Last summer, the department announced a $2 billion investment as part of the Inflation Reduction Act to expedite domestic production of electrified vehicles and associated technology, with Nuvve being among the beneficiaries of this investment. Vehicle manufacturers are equally invested in fortifying the requisite infrastructure to accommodate their burgeoning fleet of EVs, further bolstering this technology. Consequently, a burgeoning market opportunity is taking shape for vehicle-to-grid technology entities such as Nuvve. In 2021, the market commanded a valuation of $2.78 billion, set to escalate to $20.06 billion by 2031, exhibiting a robust compound annual growth rate (CAGR) of 21.4%.
Nuvve Bolsters Its Foothold
Nuvve is vying to emerge as a prominent contender in this market domain, leveraging its expertise, impressive track record, and, of utmost significance, its sustainable technology. Its storage systems empower EVs to serve as distributed energy resources capable of charging and discharging energy from their batteries. The stored energy from EV batteries is then channeled to bolster the grid’s capacity and/or deliver services that enhance grid stability and avert blackouts. This maneuver not only curtails costs but also creates revenue potential for the vehicle owner. The driver simply plugs in their EV, charges it in V2G mode, and can subsequently vend excess power to the grid or accrue savings by harnessing stored energy.
Leveraging Nuvve’s technology, a fleet of electric buses could be charged during off-peak hours when energy demand wanes, adhere to their regular routine, and subsequently feed surplus energy to the grid while parked. Furthermore, its technology facilitates the amalgamation of power from multiple EVs to engender a VPP, the collective energy of which can be peddled in the energy market or utilized for grid services. The company avers that its technology not only fashions a new revenue stream for fleet proprietors but also slashes the aggregate cost of owning EVs by harnessing the batteries during idle vehicle periods.
Teaming Up on Multiple Fronts
The company has entered into a partnership with Blue Bird Corp. (NASDAQ: BLBD), a manufacturer of electric and low-emission school buses, to showcase its technology. Through this collaboration, a school district in Texas will be the inaugural recipient of an all-electric school bus fleet, comprising five Blue Bird Vision electric buses, five Nuvve Level II chargers, and the AI-powered Nuvve FleetBox 2.0 charge management software.
Blue Bird typifies just one example of the myriad partnerships Nuvve is forging as it metamorphoses EVs into distributed storage contraptions. It has constructed an ecosystem of electrification collaborators, encompassing automakers, EV dealers, charging infrastructure providers, technology solutions, and utilities, to proffer its technology for diverse fleet categories, ranging from school buses to municipal and last-mile delivery vehicles.
The proliferation of EVs is no longer a question of ‘if,’ but rather ‘when’ they will constitute the preponderance of vehicles on the road. If this feat is accomplished by 2040, the nation and Europe will need the requisite infrastructure to buttress this paradigm shift. Entities such as Nuvve are wagering that V2G will play a pivotal role in ushering in a greener morrow.
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