Volvo launches new energy solution business

Volvo has announced that it is launching a new energy solutions business.

Called Volvo Cars Energy Solutions, the new business unit will offer energy storage and charging-related technologies and services to make more efficient use of energy.

The new energy solutions business will put Vehicle-to-Grid technology to the test with real customers in a pilot programme in Gothenburg

The new firm is working together with a Swedish grid company in Gothenburg to launch one of the first Vehicle-to-Grid (V2G) pilot programmes that will test the technology on a local energy grid with real customers. The pilot will demonstrate to other gird companies that V2G programmes can offer tangible benefits and will also serve as a testing arena for new future technology that is central to the future of Volvo cars.

Volvo expects to bring millions of electric cars on the road in the coming years, and its engineers have calculated that this total battery fleet will reach close to 50GWh by mid-decade. At the same time, data from the Volvo fleet shows that the average daily drive in Europe uses less than 10kWh, while 90% of all daily drives use less than 20kWh.

This, Volvo states, means that there is spare capacity left which bi-directional charging technology could utilise to store energy and deliver it back into the grid when demand for electricity is higher - possible yielding financial benefits for customers and significant climate benefits.

The Volvo EX90 all-electric SUV is already equipped with the necessary hardware and software that enables bi-directional charging, allowing it to give back extra battery power to a compatible grid and thus balance the grid during peak hours and reduce the need for fossil-generated electricity.

Volvo Cars Energy Solutions is expected to generate significant new revenues from energy-related products and services every year, as well as new products not previously offered by Volvo Cars.