California’s Vehicle-to-Grid Blueprint Could Unlock 9 GW of Power by 2036

A joint analysis by GridLab, Kevala, and Energy and Environmental Economics projects that enrolling just 10 % of California’s anticipated electric-vehicle (EV) fleet in vehicle-to-grid (V2G) programs by 2036 would supply roughly 9 gigawatts (GW) of power for 12 hours—equating to about 108 gigawatt-hours (GWh) of storage. That amount exceeds one-third of the state’s long-duration energy-storage target for that year.

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V2G technology enables a compatible EV to discharge electricity from its battery back to the grid during periods of high demand, then recharge when supply is abundant and cheap, such as during midday solar peaks. The report argues that, alongside home batteries, smart thermostats, water heaters, and commercial buildings, EVs can provide flexible load without relying on new power plants or large-scale batteries. To realize this potential, the authors call for:

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• Standardized program designs across all California utilities.

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• Uniform technical requirements for interconnection.

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• Compensation based on verified grid performance rather than mere enrollment, with payments set below utilities’ avoided-cost values to protect non-participating customers.

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A 2024 GridLab-Brattle Group study cited in the report estimated that virtual power plants using existing technologies could meet more than 15 % of California’s peak electricity demand and generate roughly $550 million in annual savings for utilities and ratepayers. The new analysis extends that outlook, suggesting that even one-way smart charging—shifting EV charging from evening peaks to lower-cost hours—could further reduce the need for costly grid upgrades. The California Energy Commission has indicated that automated load flexibility can align electricity use with renewable generation, easing pressure on the transmission system.

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The report recommends that utilities adopt common payment structures tied to measurable grid value, thereby encouraging broader participation while ensuring that non-EV owners are not disproportionately burdened.

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• “The next generation of grid infrastructure is already sitting in our driveways, homes, and businesses,” — GridLab

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