Mitsubishi Calls for Red Tape Reduction to Boost Bi-Directional Charging in Australia

Mitsubishi Motors has made headlines as the first automotive brand in Australia to introduce bi-directional vehicle-to-grid (V2G) charging, but CEO Shaun Westcott believes regulatory red tape is hindering its national rollout. Speaking with Drive, Westcott stressed the need for urgent reform, stating, “We need somebody to take – not a pair of scissors – but a hedge clipper to the red tape.”

Since launching bi-directional charging at its Adelaide headquarters in May, the technology has gained momentum. However, Westcott emphasized the challenges they faced, including complex negotiations with South Australian power authorities to gain approval. Although Mitsubishi has a working V2G site in Adelaide, expanding this nationally remains an uphill battle.

The Roadblocks: Bureaucracy and EV Compatibility

Westcott pointed out that beyond red tape, another barrier is the limited number of vehicles capable of V2G, with only older EVs like the Mitsubishi Outlander PHEV and Nissan Leaf supporting the CHAdeMO plug required for the technology. “Japan’s been doing it for years,” Westcott said, adding that Australia could replicate Japan’s success if regulatory hurdles are addressed.

Currently, South Australia is the only state allowing bidirectional chargers in homes, making the expansion of V2G technology limited. Flinders University, alongside Mitsubishi’s office, is one of the few Australian locations with an operational V2G site.

V2G vs. V2L: The Next Step in Grid Stabilisation

Unlike vehicle-to-load (V2L) technology, which allows EVs to power external devices or charge other cars, V2G enables vehicles to share power with homes or even feed electricity back to the grid. This emerging tech has the potential to stabilize energy supply during peak times, reduce consumer energy costs, and provide significant support to Australia's energy grid.

Several trials, including the NRMA's EV Smart Holiday Parks Trial and AGL’s Electric Vehicle Orchestration Trial, are currently underway to assess the viability of V2G on a broader scale.

A Promising Future, If the Red Tape is Cut

While V2G technology is still in its infancy, its potential benefits are significant. However, high costs—$10,000 for a bi-directional charger—and the complexity of installation remain deterrents. Yet, upcoming advancements will allow EVs with CCS2 plugs to support V2G, simplifying the process and potentially boosting adoption.

Australia’s energy grid could benefit greatly from V2G, but for this technology to take off nationwide, Westcott's message is clear: the red tape must be cut.