As a result of the Electric Vehicle Smart Charging Action Plan, electric vehicle (EV) consumers are set to benefit from lower energy bills and cheaper motoring.
The Government and Ofgem, have set out the steps being taken to seize on the significant potential of smart charging and make it the preferred method of long duration charging by 2025.
According to the report, smart charging harnesses the potential of energy use data and the latest energy innovations to deliver significant benefits for consumers, including allowing motorists to charge electric vehicles when electricity is cheaper or cleaner, allowing consumers to power their home using electricity stored in their electric vehicle, or even sell it back to the grid for profit.
As part of the announcement, the Government stated: “It is expected high mileage motorists could save up to £1,000 a year through smarter charging.”
By reducing electricity system costs at a national scale, it will naturally lower prices for the public.
This would enable motorists to pay less for charging their EV, and the electricity powering electric vehicles will be cleaner and greener. This also feeds into the Government’s Net Zero goals by 2050.
The Government and Ofgem will seek to remove the barriers that currently prevent the full development of a diverse and competitive smart charging market, while making sure the energy system is ready to respond to the upturn in energy demand that electric vehicles will bring.
Energy and Climate Minister Graham Stuart said: “We want to make smart charging an easier choice for drivers of electric vehicles, whether that is charging on the driveway, at the workplace, or parked on the street. To do that we need to build new network infrastructure at pace, using the latest available technologies.
"Today’s plan sets out how we will work with Ofgem and industry to kickstart the market for smart charging, which we are backing up with £16 million in innovation funding. This will let people take control of their energy usage, in the most convenient and low-cost way.”
Ofgem Director for Strategy and Decarbonisation Neil Kenward said: “As energy regulator, we’re helping create the infrastructure to deliver Britain’s net zero future at the lowest cost to customers. This latest innovative plan will help to maximise the benefits of smart charging, offer vital savings to consumers and reduce the overall cost of energy by seizing the opportunities to use batteries to both power homes and fuel the wider grid.”
Through this scheme, the Government will look to provide extensive information and evidence on smart charging.
The report stated: “Depending on tariff, mileage, and charging patterns, smarter charging could save an average driver up to £200, and a high mileage driver up to £1000 a year by delaying the power demand from electric vehicles at peak periods, such as 4pm to 9pm on winter evenings.”
It is the Government’s ambition that by the end of the decade, smart charging will be commonplace in the UK for EV drivers.
RAC EV spokesperson Simon Williams said: “Any innovation that can help reduce the cost of charging an EV is very welcome.
“While it remains the case that charging an EV at home is still far cheaper than driving a petrol or diesel car that gap disappears when using the fastest public chargers.
“We hope the Government starts to tackle this issue as it has the potential to slow down the transition to zero-emission motoring, particularly for those who may never be able to charge at home.
“It would also be very beneficial if all forms of public charging could be reduced by this kind of innovative thinking, but one step that could be taken straightaway is lowering the VAT rate on public electricity from 20% to match the 5% drivers pay at home.”
Will this latest development encourage you to switch to electric? If you already own an EV, will this scheme help you save money? Leave your comments below.
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