SEPA Report Urges Farsighted Regulation of Residential V2G
The Smart Electric Power Alliance (SEPA) has issued a report calling on regulators to prepare for the growth of bidirectional electric vehicle (EV) charging, where EV batteries can export power back to the grid. At least eight states are already developing approaches to manage energy exports from EVs and electric buses, which can help balance renewable generation much like stationary storage systems.
Bidirectional charging is reshaping the role of electric vehicles by turning them into active participants in the energy ecosystem. Often referred to as V2X (vehicle-to-everything) this technology enables EV batteries not only to draw electricity from the grid but also to send power back when needed. One of the most talked-about applications, vehicle-to-grid (V2G), allows EVs to support grid stability by supplying stored energy during peak demand or emergencies, much like stationary battery storage systems.
Other use cases include vehicle-to-home (V2H), where an EV can keep lights on during a power outage, and vehicle-to-building (V2B), which helps facilities manage energy costs and demand spikes. Together, these innovations transform EVs from simple modes of transportation into mobile energy assets that can improve grid resilience, enhance renewable integration, and unlock new value streams for drivers and utilities alike.
SEPA’s report emphasizes that now is the right moment for farsighted regulation. With customer adoption still relatively low, regulatory commissions have the chance to lay the groundwork that will guide future growth, ensure safe integration with the utility grid, and create compensation mechanisms for customers who provide grid services. The report highlights that vague marketing terms like “vehicle-to-home” or “vehicle-to-grid” are insufficient and that more precise technical definitions are needed to clarify how these systems operate. This distinction helps determine, for example, whether a customer using an EV battery for backup power during an outage falls under existing energization rules or must undergo a full interconnection process.
SEPA stresses that requiring interconnection is critical. It allows utilities to confirm safe installations and enables important benefits such as export compensation for EV owners, dynamic rate structures, and the integration of mobile batteries into virtual power plants. The report also points out that most bidirectional systems in the U.S. today rely on off-board inverters housed in chargers or backup units to convert DC battery power into AC. However, more automakers are expected to manufacture vehicles with onboard inverters over the next five years. This shift could reduce costs and accelerate adoption, but the many vehicles already on the road will still need viable interconnection pathways.
Developed with input from ten utilities, as well as automakers, charger manufacturers, software providers, and nonprofit organizations, SEPA’s study is titled “Interconnection guidance for residential bidirectional EV charging: A utility-informed resource for regulators.”
Smart Charging, a Related Technology Making Great Advances
Smart charging can be used in conjunction with V2G, or in the absence of it. Smart charging is an advanced approach to managing electric vehicle (EV) charging that optimizes when and how EVs draw power from the grid. Instead of charging immediately at maximum capacity, smart charging systems use real-time data, dynamic pricing signals, and grid conditions to schedule charging at the most efficient times—such as during off-peak hours or when renewable energy is abundant.
BluWave-ai’s EV Everywhere solution simplifies the path to widespread EV adoption by leveraging its distributed smart charging AI SaaS platform. The system processes real-time data to forecast demand, accounting for consumer load profiles, renewable generation, and both front- and behind-the-meter energy storage. Seamlessly integrated with utility operations, EV Everywhere enables intelligent scheduling of EV charging and optimizes battery energy storage dispatch. By doing so, it offers a non-wires alternative that helps mitigate peak loads, reducing stress on the grid while deferring or even avoiding costly infrastructure upgrades. The system allows utilities to improve customer engagement by enabling the offering of incentives to EV drivers for EV charging to assist grid operation.
The Smart Electric Power Alliance (SEPA): Driving Collaboration for a Clean Energy Future
As the energy sector undergoes its most significant transformation in a century, collaboration has become the cornerstone of progress. The Smart Electric Power Alliance (SEPA) stands at the center of this transition, bringing together utilities, regulators, technology providers, policymakers, and nonprofits to accelerate the shift to a carbon-free energy system.
Founded in 1992, SEPA has grown into a trusted convener and knowledge hub for organizations navigating the clean energy transition. Its mission is not to advocate for one technology or policy over another, but to provide unbiased research, guidance, and collaboration opportunities that enable smarter decisions and practical pathways forward. Members include hundreds of utilities, clean energy developers, government agencies, and businesses, all united by the shared goal of modernizing the grid and achieving deep decarbonization.
SEPA focuses on five key areas: transportation electrification, energy storage, distributed energy resources, regulatory and business innovation, and grid modernization. By fostering open dialogue and producing practical tools like reports, frameworks, and pilot program insights, SEPA helps bridge the gap between ambition and implementation. Its work on interconnection standards, customer-focused innovation, and bidirectional EV charging is shaping how regulators and utilities prepare for the growing role of electric vehicles and renewable energy.
The organization also provides training, working groups, and peer-to-peer exchanges that allow stakeholders to share lessons learned in real time. From tackling permitting delays to designing dynamic rate structures, SEPA’s convening power enables its members to test solutions, reduce risks, and replicate successes across the country.
As the U.S. strives to meet net-zero carbon goals by mid-century, SEPA’s role as a neutral, solutions-driven partner will be critical. By aligning diverse stakeholders and creating space for innovation, SEPA ensures that the transition to clean energy is not only achievable but equitable, resilient, and beneficial to all communities.
