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Michigan Post > Blog > Startups > How our cities are turning into large batteries
Startups

How our cities are turning into large batteries

By Editorial Board Published July 28, 2025 8 Min Read
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How our cities are turning into large batteries

Because the electrification of transport and heating accelerates, many fear the elevated demand might overload nationwide energy grids. In Australia, electrical energy consumption is anticipated to double by 2050.

If everybody costs their automotive and heats water utilizing electrical techniques on the identical time, peak demand might rise sharply, forcing expensive grid upgrades. However this is able to solely occur if there’s no planning achieved.

The shift to electrical autos (EVs) and electrical water heating has an enormous silver lining. As extra Australians make the swap, they’re quietly increasing an unlimited community of distributed power storage. In a totally electrified future, every individual might have on common about 46 kilowatt hours price of power storage – each in EV batteries and scorching water techniques.

Scaled up, that’s an enormous useful resource. If all vehicles and water heaters run on electrical energy, their mixed versatile power storage might attain over 1,000 gigawatt-hours (GWh) throughout Australia. That’s far past the 350 GWh capability of the Snowy 2.0 hydroelectric venture and all current grid-scale batteries put collectively.

Authorities can use these gadgets to assist function the grid extra effectively and slash infrastructure prices. In reality, our new analysis exhibits that with the best coordination, cities can remodel from power shoppers into versatile power hubs capable of retailer power and launch it as crucial. This may make it doable to keep away from billions of {dollars} price of grid upgrades.

Storage in-built

Electrification replaces fossil fuel-burning know-how with electric-only techniques, powered by a grid getting steadily cleaner.

For households, electrification means switching a combustion engine automotive for an EV and changing gasoline scorching water with electrical techniques comparable to warmth pumps. Each slash carbon emissions when run on grids with excessive ranges of renewables.

EVs and electrical scorching water techniques supply extra than simply mobility or heating. In addition they have built-in power storage. EV batteries retailer big quantities of electrical energy – normally a number of occasions the dimensions of a home battery. Sizzling water techniques retailer power too, within the type of warmth.

Each of those assets are very helpful to energy grid authorities, as a result of they might help optimise how the grid operates.

Energy grids are a relentless balancing act, the place provide and demand should be rigorously matched up. At occasions of intense demand, comparable to throughout a heatwave, demand can outstrip regular provide and ship costs skyrocketing.

When EVs are charged and water heated throughout off-peak durations, the pressure on the grid may be considerably lessened.

Canberra is pointing the way in which

Since 2020, Canberra has been 100% powered by renewable electrical energy. The ACT Authorities is aiming for internet zero by 2045.

In our modelling, we discovered this purpose might get quite a bit nearer if EVs and scorching water techniques are used cleverly. We discovered altering the time vehicles are charged and water heated would shift round 5 kWh of electrical energy per individual per day. That’s a few third of every Canberra resident’s common each day electrical energy use.

Unmanaged charging and water heating would trigger peak load to leap 34%. But when charging and heating was shifted to off-peak hours in a single day, it might prohibit the rise in peak load to simply 16%.

Decreasing the rise in peak load would make it doable to keep away from billions of {dollars} in grid upgrades comparable to increasing substations and constructing extra transmission traces.

The place flexibility issues most

We discovered Canberra’s new power storage assets are concentrated in storage hotspots – densely populated areas with many electrical scorching water techniques and the place many EVs are parked throughout the day.

Importantly, these hotspots don’t keep put. Throughout working hours, car batteries have a tendency to pay attention in high-density workplace areas the place EVs are parked. Storage capability rose as much as 31% in some Canberra working districts throughout the working week.

It might make sense to take advantage of these hotspots by putting in sensible chargers, which optimise the timing of EV charging and creating digital energy crops, which might coordinate the time when family gadgets and EVs draw energy.

Each of those approaches supply an economical strategy to combination small scale family gadgets into a big coordinated storage useful resource.

Aligning demand with photo voltaic peaks means utilizing renewable power which could in any other case go to waste throughout peak occasions.

This map exhibits Canberra’s storage hotspots averaged out. EV batteries are in blue and electrical scorching water storage in orange.
Bin Lu, CC BY-NC-ND
Coverage must catch up

Capturing the massive advantages from these new storage assets received’t occur mechanically. It requires sensible techniques and supportive insurance policies.

Applied sciences comparable to sensible chargers and digital energy crops exist already. South Australia’s Digital Energy Plant exhibits what’s doable in observe.

However up to now, most Australian households don’t have these sorts of sensible techniques. In lots of areas, electrical energy pricing is comparatively rigid and there’s restricted coordination between versatile power use and the wants of the grid.

To unlock the complete potential of this big new power storage useful resource, governments and power corporations ought to:

encourage uptake of sensible chargers and sensible water heaters in buildings
increase dynamic pricing schemes which higher replicate real-time provide and demand to assist shift electrical energy use to off-peak durations
concentrate on rolling out office EV chargers in high-density areas to spice up charging throughout photo voltaic peak durations
develop sensible power techniques capable of combination gadgets in particular person households into a big grid-supporting fleet.

Extra demand – however extra storage

As Australia more and more goes electrical, cities have gotten extra than simply power shoppers.

Relatively, they’re changing into versatile power hubs capable of assist steadiness provide and demand.

Used properly, humble electrical water heaters and EVs can do greater than meet family wants — they might help energy Australia’s clear power future.The Conversation

Bin Lu, Senior Analysis Fellow in Renewable Vitality, Australian Nationwide College and Marnie Shaw, Affiliate Professor in Engineering, Australian Nationwide College

This text is republished from The Dialog underneath a Artistic Commons license. Learn the unique article.

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