Tesla’s downplay of balancing the grid with EVs seems out of step with the future

By Dennis Griffin, director, Electric Auto Association

It is becoming apparent that electric vehicles (EVs) are to become the future of driving. This includes passenger cars, SUVs, trucks, motorcycles and even bicycles.

Because the major automakers have been slow-walking their transition to electric, some may not exist in the not too distant future. The underlying reason for resisting a rapid transition to EVs is that EVs do not fit their classic business model. The majority of their revenue is derived from service and maintenance, and EVs, require far less maintenance than internal combustion engine (ICE) cars.

History shows that fighting inevitable change is not a good strategy for the future. Think Kodak film and cameras, brick and mortar retailers, video rental stores like Blockbuster. Will Ford, GM and Chrysler and many foreign brands be added to this list?  Probably.

However, Tesla’s recent Battery Day exposed a crack in the company’s armor. And it wasn’t battery technology (which they still own), it was more of a policy issue. In response to a question about vehicle-to-grid (V2G), Tesla summarily dismissed the concept.

Together, EVs could form a virtual power plant (VPP)

V2G is the concept of using the batteries in EVs to power homes and possibly the grid. Collectively, they eliminate the need for more gas-powered plants that have the liability of more greenhouse gas emissions.

When EVs were first introduced, this concept of using EVs to help balance out grid demand was one of the key selling points. Nissan embraced it with the LEAF and its bidirectional charging capability.

Realistically, a Tesla vehicle represents the equivalent of 5-7 Powerwalls. If Powerwalls are meant to power a home or have the capability to send surplus energy to the grid, why can’t a Tesla vehicle do the same? I realize that the current Teslas do not allow for bidirectional energy flow, but that is just a hardware and control issue that could be changed going forward.

In light of Tesla’s position, other manufacturers of EVs have an opportunity to offer a money saving feature in which Tesla is apparently not interested. V2G would give EV owners the ability to earn significant funds by providing energy to the grid at times of peak demand. And. it would give them the additional benefit of recharging their EVs midday from solar surplus, or overnight when demand and rates are at their lowest.  

It seems like a better option to have your EV work for you by balancing the grid rather than by having your EV working the streets as a for-hire "Robo-Taxi" as Tesla seems to be pursuing. 

Offering the consumer a financial advantage with V2G is perhaps the one chance for later-to-the-party auto manufacturers to divert sales from Tesla.