In order for the transformation in automobile construction towards electric drive to succeed, the power grids must keep up. Intelligent energy systems are necessary for a comprehensive supply of charging points. But that's not all.
Smart energy systems: Charging electric vehicles when the electricity is cheap is one building block. The batteries of the vehicles are also intended to serve as energy storage in the future.
(Image: Keysight)
The clock is ticking for the automotive industry to meet upcoming deadlines for more environmentally friendly energy sources that will come into effect at the end of the decade. To achieve widespread adoption of electric vehicles (EVs) and meet the requirements, considerable changes are needed. One area that needs more attention is the question of how the transition to an electric future can be shaped.
In the face of expected demand for electric power to increase by nearly 20 percent by 2050 [1] because of electric vehicles and other environmentally friendly propulsion technologies, the power grid is under enormous pressure. The outdated infrastructure is already creaking and the expectation to handle this growth with the established power value chain – generation, transmission, distribution, and consumption – is not realistic. In order to successfully shape the energy transition, utility companies and the entire ecosystem need to work together and view energy supply in a new way.
Balance between demand and generation
As more and more electric vehicles are on the roads, the increasing grid load combined with fast charging stations could lead to an imbalance between supply and demand, increasing the likelihood of system-wide outages. For the future, interoperability and smart energy management are crucial. All stakeholders, including the government, need to develop a roadmap to ensure the necessary capacities.
Renewable energies, including wind and sun, will help. However, their inherent volatility can exacerbate the problem of the discrepancy between supply and demand. This is why energy storage is of great importance. Careful coordination and intelligent use are crucial to ensure a balance between demand and generation. Let's delve into the question of what smart energy systems need to include in order to support the EV future.
About the person
Thomas Götzl is Vice President and General Manager for Automotive & Energy Solutions (AES) of the Electronic Industrial Solutions Group at Keysight and Managing Director of Keysight Technologies in Germany.Most recently, Thomas Götzl was AES Business Manager for Energy Applications with a focus on test solutions for smart grid, power semiconductors, batteries and EV/HEV. Since 2012, he has defined and implemented programs for the automotive industry. In addition, he has established processes for structural collaboration with customers to define and integrate new digital technologies.
Thomas Götzl joined Hewlett-Packard in 1994 as a Technical Marketing Engineer supporting IT management applications for remote software maintenance. During his time at HP, Agilent Technologies and now Keysight Technologies, he led R&D projects, developed marketing programs and sales channels and was appointed Marketing Manager in 2005. In 2012, he was appointed Global Marketing Manager of the Electronic Test Division (ETD).
Generate and distribute energy
"Energy suppliers, car manufacturers and charging infrastructure operators must work together to use electric vehicles as distributed energy resources (DER), to support the electricity grid and improve fail-safe operation," says Thomas Götzl from Keysight.
(Image:Keysight)
Centralized generation and one-way power flow are not a solution to this problem. Instead, developments such as bidirectional power flow are crucial. In this case, when demand is low, energy is drawn from the grid and used to charge the car. The excess power is then sold back to the grid. Tesla's opt-in program [2] feeds power back into the grid from its batteries when demand peaks occur.
The transition to Vehicle-to-Grid (V2G) turns electric vehicles into energy storage devices that can relieve the power grid. V2G is enabled by new, smart energy conversion technologies and communication options with the energy supplier that are built into EVs and charging stations. In addition, the vehicles can communicate with the grid and stabilize it by using the onboard battery as a grid-tied energy storage system.
Bidirectional charging stations are gradually becoming available, with the first version introduced by Nissan [3]. However, they are expensive and often require additional special hardware. In order to encourage individuals to use V2G, energy supply companies must introduce an incentive program to accelerate acceptance.
The current energy network is too fragmented
Energy suppliers, car manufacturers and charging infrastructure operators need to collaborate to utilize electric vehicles as distributed energy resources (DER) to aid the power grid and improve resilience. The use of energy storage is crucial as the capacity of the existing network cannot be increased. With a higher portion of renewable energy, the project contributes to sustainability and supports net-zero initiatives.
Another component of smart energy management is the demand for interoperability. The existing network is fragmented, and regulation is essential for the industry’s ecosystem to function uniformly. For instance, electric cars and charging stations need to meet new and evolving standards for interconnection and interoperability with the power grid. Regulatory hurdles must be overcome to support V2G, allowing vehicles to actively contribute to the health of the network and not just be a burden. Once this is the case, utility companies will be able to manage distributed energy resources to consider the diverse energy mix and changing demand.
AI algorithms and machine learning support charging
The Federal Energy Regulatory Commission (FERC) [4] and North American Electric Reliability Corporation (NERC) [5] aim to pave the way for distributed energy resources to play a more significant role in the energy ecosystem. FERC 2222 [6], for example, allows distributed energy resources to become part of the energy wholesale markets operated by regional grid operators. This is intended to create incentives for the adoption of distributed energy resources, lower costs, and increase flexibility and resilience to promote more innovation.
Date: 08.12.2025
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Energy suppliers need to digitize their infrastructure in order to get the necessary transparency for the dynamic use of energy resources. With distributed energy resources, the management of the distribution network becomes much more complex. In addition, fast charging networks will lead to unpredictable peak loads, which require a higher granularity.
Over time, artificial intelligence and machine learning will be integrated to provide the intelligence for predicting, planning, and managing the charging of electric vehicles to ensure the required resiliency and support dynamic load management. Utility companies need detailed insights to control power generation and distribution.
Electric cars and charging stations must meet new and evolving standards for interconnection and interoperability with the power grid.
Thomas Götzl, Keysight
High power testing at the network edge
Modern power grids are becoming increasingly digitized to control and optimize energy distribution. Distributed Energy Resources are being integrated, supported by improved power converters and inverters to enable power flow in both directions. Battery Energy Storage Systems (BESS) are intended to store excess energy, which can be fed back into the grid during peak demand.
The testing of the converters and inverters in the power grid, their interoperability with each other and with the supply and energy management systems, is crucial to ensure the safety and performance of complex DER networks.
Energy utility companies are starting to introduce flexible pricing structures to better balance demand and reduce strain on the grid. Time-of-day electricity rates offer lower prices during periods of low demand. These and other programs, like tax incentives for electric vehicles and solar power systems, are important tools for utilities to promote participation and increase societal acceptance.
The widespread introduction of electric cars is a complex undertaking and intelligent energy management is a key prerequisite to achieve this goal. Given the rising electricity demand, the energy and automotive sectors must collaborate and pull together if the electric transformation is to become reality. (heh)