Octopus Energy has embarked on a groundbreaking initiative to integrate electric cars into the UK’s energy system, aiming to transform the country’s energy landscape. The company’s innovative approach involves utilizing electric vehicles (EVs) to balance power within the National Grid’s system.
Building on a successful seven-month trial with National Grid ESO, Octopus Energy’s customers have been using their electric cars to help balance the grid, benefiting from reduced charging rates. This initiative not only benefits individual customers but also contributes to reducing system balancing costs for all energy bill payers.
According to Octopus Energy, the trial has demonstrated the potential of EVs to function as “mini power plants,” offering a decentralized and cost-effective solution compared to traditional large-scale power plants. If all 10 million expected EVs in the UK by 2030 were to participate in the Balancing Mechanism, system costs could be reduced by nearly £100 million per year, while also preventing renewable energy wastage during low-demand periods.
Alex Schoch, Head of Flexibility at Octopus Energy, highlighted the significance of empowering customers to play an active role in the energy system, stating, “We’ve empowered customers to take an active role in the energy system by standardising the process with National Grid and using cutting-edge technology. This will accelerate the transition to a cheaper and more sustainable future.” He added, “This bottom-up approach to energy transition benefits consumers and drives down system costs, ensuring that everyone profits from the shift towards electric transport.”
