Electrification is advancing across Europe’s economy, with electric vehicles (EVs) as one of the main technologies at the forefront of this transition. As EV adoption grows, their integration into the electricity system offers a unique opportunity to support grid flexibility and accelerate decarbonization. Indeed, recent EU legislation has started to create a clearer framework for enabling EVs not only to manage their charging smartly but also to discharge electricity back to the grid, thereby contributing to a reduction of both system costs and emissions. However, recent developments in the automotive sector, including a slowdown in electrification efforts by car manufacturers, could place this emerging trajectory at risk of misalignment.

The revised Renewable Energy Directive (RED III)—formally Directive (EU) 2023/2413—explicitly recognises EVs as decentralised energy assets, establishing a foundational regulatory framework to promote their integration into energy systems[1]. This regulatory acknowledgement builds upon several years of foundational work from more than 1,000 academic papers that introduced and built on the Vehicle‑to‑Grid (V2G) concept. V2G envisages EVs as bi‑directional power assets capable of intelligently charging during periods of excess renewable generation and discharging during peak demand, thereby mitigating fossil-fuel-based electricity production, alleviating grid congestion, and balancing electricity systems.

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https://fsr.eui.eu/eu-electromobility-at-crossroads-what-does-it-mean-for-the-electricity-system/