ARENA backs major expansion of vehicle-to-grid trial

The Australian Renewable Energy Agency (ARENA) has committed an additional $13.6 million to expand a vehicle-to-grid (V2G) project led by Amber Electric, in a move aimed at accelerating the adoption of EVs as flexible energy assets and strengthening Australia's electricity grid.

The funding increases ARENA's total support for the project to $16.8 million and will significantly scale participation in the trial. The number of households with V2G capability will increase from 50 to 1000 while households participating in smart EV charging will more than double from 950 to 2000.

The expanded project will allow EV owners to automatically charge their vehicles when electricity prices and emissions are low, while also enabling eligible vehicles to export store energy back to the grid during periods of peak demand.

ARENA chief executive Darren Miller said the initiative would help address some of the key challenges preventing broader V2G adoption.

"To unlock V2G at scale, we need to bring together customers, car makers, networks and technology providers," Miller said.

"A big part of that is giving manufacturers the confidence their vehicles will perform as expected including through validated approaches to battery use and warranties," he said.

The project will initially work with Chinese electric manufacturer BYD to implement charging standards that support bidirectional charging, while also conducting real world battery testing to address warranty concerns.

According to ARENA, the expanded rollout is expected to provide valuable insights into customer behaviour, technology performance and market integration, helping shape future policy settings and industry investment.

"This project brings those pieces together to demonstrate how EVs can become an active part of the energy system," Miller said.

"That means savings for owners and better utilisation of the grid, which can bring down the cost of the network for everyone."

The announcement adds to ARENA's growing role in delivering Australia's energy transition. Earlier this month, the agency was tasked with administering the federal government's $1.1 billion Cleaner Fuels Program and is progressing the next stage of its Hydrogen Headstart initiative. Reinforcing its position at the centre of Australia's decarbonisation and energy security agenda.

The Amber Electric expansion forms part of ARENA's Driving the Nation Program, which is focused on accelerating electric vehicle uptake and supporting technologies that improve energy system flexibility.