Your Battery on Wheels
The battery in your car isn’t just for driving anymore. With the right policy settings and infrastructure, it could become one of Australia’s most powerful and flexible energy assets. The National Roadmap for Bidirectional EV Charging (1), backed by ARENA and RACE for 2030, paints a clear picture: bidirectional charging—also known as V2G (Vehicle to Grid)—isn’t just technically feasible, it’s commercially inevitable. For investors looking for the next frontier in clean energy, bidirectional charging presents a compelling case of scale, economics and timing.
The Investment Logic
Bidirectional EV charging allows electricity to flow both into and out of an EV battery. This means cars can be used not only to charge from the grid or rooftop solar, but to discharge back into a home, building, or the grid itself. The applications range from backup power to grid stabilisation and frequency control.
From an investment point of view, it’s a story of leveraging sunk capital. The EV battery is already paid for by the consumer. Bidirectional charging simply unlocks additional value from that battery. In a world of increasing peak demand, intermittent renewables, and expensive grid-scale storage, the economic advantage is clear: low marginal cost, high flexibility, and fast response times.
By 2050, the usable storage capacity of Australia’s EV fleet is expected to exceed 2,300 GWh—over three times the total projected storage needs of the National Electricity Market. In other words, the cars are already coming. The opportunity lies in making better use of them.
Monetisable Value Streams
Four key revenue streams make bidirectional charging attractive from a commercial standpoint:
Energy Arbitrage: EVs can be charged when prices are low and discharged when prices spike. Wholesale market modelling indicates this could yield up to $2.7bn in savings by 2050
Network Support: Bidirectional charging can alleviate stress on distribution networks by charging during solar overproduction and discharging during peak load. Estimated additional network savings reach $1.5bn.
Backup Power: In the face of climate-related grid instability, using an EV as a mobile battery offers resilience benefits that consumers are increasingly willing to pay for.
Frequency Response: Fast frequency control is a specialised but potentially lucrative use-case, particularly for high-capacity fleets or heavy vehicles.
Residential Leads, Commercial Follows
The residential market is the clear frontrunner for mass adoption. Australia’s early dominance in rooftop solar (4m+ systems installed) provides the perfect springboard for V2G. These homes already have the infrastructure, the consumer mindset, and in many cases, the tariff structures to make V2G viable.
Many stakeholders see a future where bidirectional EV uptake mirrors rooftop solar: widespread, profitable, and disruptive. By 2040, it’s expected that 2.6m homes could have bidirectional-capable vehicles plugged in.
Commercial fleets and heavy vehicles will come later, but they present scale opportunities that can’t be ignored. School buses and rigid trucks with predictable duty cycles are already being used in trials in the US. Car-sharing fleets, especially in Europe, have also proven compatible with V2G business models.
The Tech Is Ready, The Market Is Not (Yet)
According to the report, at least 33 vehicle models have demonstrated or announced bidirectional capabilities globally. But mass-market adoption in Australia remains stalled by one key issue: local product availability.
This is where policy matters. Automakers prioritise large markets that offer a compelling business case. Australia is currently behind the curve — but we have the potential to leap ahead, just as we did with rooftop solar.
The core technical challenge isn’t hardware; it’s interoperability. Getting EVs, chargers, home energy systems, and grid operators speaking the same language requires standards like ISO 15118-20 (for vehicle-charger communication), OCPP 2.1 (for remote charger management), and CSIP-AUS (Australia’s version of IEEE 2030.5 for dynamic grid interaction). These standards are now mature — or close to it — and form the backbone of a functioning V2G ecosystem.
Battery Health, Warranty and Risk
Investor concerns about battery degradation are understandable but increasingly misplaced. Managed charging can actually reduce wear on the battery, and next-gen chemistries are delivering million-mile lifespans. That said, warranty clarity from automakers is essential. According to the report, while Nissan has no restrictions on V2G use, Volkswagen’s initial V2G warranty caps usage at 800 hours per year. As more manufacturers compete for market share, you would think these terms are expected to improve.
What the Market Modelling Shows
According to the Market Modelling Report commissioned as part of the National Roadmap, the savings stack up across scenarios:
Wholesale Market Benefits: Between $0.7bn (slow uptake) and $2.7bn (fast uptake) in savings, mostly through avoided generation CAPEX and OPEX.
Network Cost Reductions: $0.6bn to $2.4bn depending on uptake and network assumptions.
Total Net System Benefits: After factoring in upfront costs (like the charger), the net present value of benefits remains in the billions.
Fast uptake obviously delivers more value, but even slow adoption pays off handsomely. The models show that a V2G-enabled fleet of just 1.45 million vehicles by 2040—out of an expected 7.9 million EVs—is enough to yield real benefits.
What Needs to Happen
The Roadmap outlines 18 actions grouped into five priority areas:
National Policy Commitment: A unified signal that Australia is open for V2G business. This includes aligning with global standards and prioritising local homologation.
Consumer Value Transfer: Ensure that consumers are rewarded for participating. This means tariff reform, dynamic pricing, and upfront installation rebates.
Smart Grid Maturity: Network operators need tools and frameworks to integrate flexible assets like V2G into grid operations.
Interoperability and Standards: Push for adoption of ISO 15118-20, CSIP-AUS, and other standards to make V2G plug-and-play.
Supporting Consumers: Education, marketing, and protections to make V2G accessible and trustworthy for mainstream consumers.
Most importantly, the roadmap calls for immediate action to incentivise automakers to release V2G-capable vehicles into the Australian market within the next 24 months. The technology is ready. The demand is there. The window of opportunity is now.
The Bottom Line
Bidirectional charging isn’t just a clever energy trick — it’s a billion-dollar opportunity hiding in plain sight. With EVs already on the road and batteries getting cheaper, the only thing holding back mass-market adoption is the market itself. For investors, that’s the gap. And every gap is a chance to lead.
As Australia phases out coal and doubles its electricity demand by 2050, the system will need flexible, decentralised storage. V2G offers it at a fraction of the cost of traditional infrastructure. All it needs is a push. The Roadmap shows the way. The question for investors is whether they’ll be along for the ride—or watching from the kerb.
References
Australian Renewable Energy Agency (ARENA) “National Roadmap for Bidirectional EV Charging in Australia” 12 February, 2025 https://arena.gov.au/knowledge-bank/national-roadmap-for-bidirectional-ev-charging-in-australia/
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