Toyota Tsusho Investing and Participating in Vehicle-to-Grid (V2G) Start-up
- Promoting virtual power plants using electric vehicles while adding value to vehicle ownership -
- Machinery, Energy & Project
Toyota Tsusho Corporation ("Toyota Tsusho") announces today that it has invested and participated in the U.S. based start-up company Nuvve Corporation ("Nuvve"), a world leading Vehicle-to-Grid (V2G) service provider. The investment was made through Toyota Tsusho's Next Technology Fund established in April 2017. A board member of Nuvve will be appointed from Toyota Tsusho in order to support expansion of the virtual power plant (VPP)* businesses utilizing EVs and plug-in-hybrid vehicles (PHV) in new markets such as Japan and other countries where these vehicles are expected to flourish in the near future.
The V2G technology that Nuvve offers allows parked EVs to become part of an electric grid while connected to the charger. Depending on the supply-demand balance in the grid, the company's platform can control the charge and discharge of multiple parked EVs - becoming a virtual power plant.
One of the advantages of V2G systems is the ability to adjust for fluctuations in renewable energy output when weather conditions change. The mechanism also benefits EV owners by generating income every time the grid operator utilizes energy from their vehicle while charging--income that can lower the cost of EV ownership. Nuvve has acquired patents for the core technologies behind V2G and has succeeded in operating the world's first commercial V2G hub in Denmark.
Many countries have begun to study the use of VPP technologies as a way to improve the balance of power supply and demand without building new power plants. In Japan, the Ministry of Economy, Trade and Industry (METI) supports technology demonstration and commercialization tests are underway. As the U.S. State of California, Europe and countries around the world take initiatives to accelerate support for EV adoption, Nuvve's V2G systems that utilize the EVs are also expected to bolster worldwide advancements in the VPP field.
With this investment, Toyota Tsusho will provide further support for renewable energy penetration while also creating added value for EVs.
In addition to Toyota Tsusho, EDF Renewable Energy, Inc., an affiliate of a major French power company, will invest in Nuvve.
*VPP: The mechanism that aggregates relatively small Distributed Energy Resources("DERs") such as solar power equipment, batteries, EVs and other power sources at places including homes, and factories in order to produce energy output in utility-scale.
The information in this release is current as of the date of announcement.
Please note that information may change after the date of announcement. Thank you in advance for your understanding.