Could MCVs be perfect battery banks?

With a predicted global market value of US$108.9 billion by 2032 and a push towards electrified drivetrains, medium commercial vehicles (MCVs) could offer a perfect solution for the energy conundrum… 

Fortune Business Insights, a UK and US-based company that offers market studies and consulting services to global businesses, expects the global MCV market to achieve a compound annual growth rate (CAGR) of 3.3% between 2023 and 2032. “The growing demand for efficient urban logistics solutions, supported by advancements in battery technology and government incentives promoting green transportation, is a key driving factor for the market,” it states in its MCV market report and forecast, published in October 2024.

“The growing demand for timely and efficient goods transportation has increased the need for reliable MCV trucks. Additionally, the stringent emission regulations are pushing manufacturers toward cleaner, more fuel-efficient vehicles, including electric and hybrid models,” it continues. “Urbanisation and infrastructure development further bolster demand, as cities require versatile and manoeuvrable trucks for construction and municipal services. Together, these factors drive innovation and growth in the MCV (market).” 

According to a report on the global Vehicle-To-Grid (V2G) market from international market research organisation, Straits Research, an influx of electric-urban-cruising MCVs could provide another benefit if V2G technology is added into this mix. “V2G is a technology that allows electric vehicles (EVs) to not only draw power from the grid for charging but also supply power back to (it),” notes the report.

British multinational professional services provider, Ernst and Young, recently partnered with Eurelectric – the voice of more than 3,500 utilities active in power generation, distribution, and supply across Europe – on a report that explores how unidirectional smart charging can reduce the total cost of ownership of EVs. “By 2030, flexibility resources across Europe will need to more than double to keep pace with an increasingly intermittent power system,” says Serge Colle, power and utilities leader at Ernst and Young. “EVs – already abundant and rapidly growing in number – are a readily-available, scalable, and cost-effective asset to provide that flexibility. By shifting EV charging to optimal times and enabling V2G, we can reduce energy costs for consumers substantially, alleviate grid stress, and support the integration of renewables into the energy system.”

Straits Research’s piece echoes Colle’s sentiments. “V2G technology offers significant potential for integrating renewable energy into the grid, playing a key role in advancing sustainable development,” emphasises the report. “By storing surplus power from solar panels or wind turbines in EV batteries, V2G systems help prevent energy waste during periods of low demand. This stored energy can be fed back into the grid when needed, ensuring efficient utilisation of renewable energy.”

V2G-enabled EVs can thus serve as decentralised energy storage units, minimising the need for costly large-scale infrastructure. “This collaboration between V2G and renewable energy creates a more resilient, efficient, and environmentally friendly energy system, bringing us closer to achieving a carbon-neutral future,” Straits Research highlights. “For example, the International Renewable Energy Agency (IRENA) states that integrating EV storage with renewable energy systems could cut grid dependence on fossil fuels by as much as 40%.” 

North America is leading the charge on the V2G front, driven by the rapid adoption of EVs, extensive charging infrastructure, and strong government support. “The US plays a key role, offering tax incentives, grants, and research funding to accelerate V2G technology deployment. California, in particular, is leading V2G pilot projects aimed at enhancing grid resiliency and integrating renewable energy sources,” notes Straits Research.

“For example, the US Department of Energy allocated US$2 billion in 2024 to advance smart grid initiatives, including V2G systems, further accelerating market growth. Canada also contributes significantly with its ambitious clean energy targets and EV-friendly policies,” it continues. “The region’s advanced grid systems, coupled with a high demand for sustainable energy solutions, position North America as a leader in V2G adoption.”

Kristian Ruby, Eurelectric’s secretary general, offers further words of wisdom: “Mass market adoption of EVs is happening, but to truly unlock their value, we must integrate them into the grid as flexibility assets. Smart-charging and V2G will be key enablers of this transition.”

Straits Research provides an eloquent summary: “As governments enforce stricter emissions regulations and companies aim for sustainability, there is a shift toward electric commercial vehicles, hybrid (vehicles), and hydrogen-powered trucks. Innovations in battery technology, extended range, and improved charging infrastructure are accelerating this transition. The focus on reducing the total cost of ownership, combined with environmental concerns, is driving demand for greener and more efficient MCV trucks.”

So, while we worry about power grids, the solution might be parked right outside: MCVs aren’t just delivery workhorses – they’re battery banks with wheels. Talk about a moving investment!