China to launch grid-connected car projects to balance power supply

A PetroChina electric vehicle (EV) charging station stands next to its gas station in Beijing, China on February 2, 2024. (Photograph: Florence Lo / REUTERS)
China is set to launch pilot projects in nine cities that will leverage the country’s expanding electric vehicle (EV) fleet to support the power grid during peak demand, according to a government announcement on Wednesday.

This initiative follows guidelines introduced last year by the National Development and Reform Commission (NDRC), aimed at integrating new energy vehicles with the grid. The move comes amid concerns that the rapid rise in EV adoption could place pressure on the country’s power generation and transmission systems, Reuters reports.

The majority of the 30 projects, which span cities like Beijing, Shanghai, Shenzhen, and Guangzhou, will focus on vehicle-to-grid (V2G) technology. In these projects, EVs will function as mobile batteries, storing power and sending it back to the grid when needed. Additionally, grid-connected vehicles will be able to adjust their charging schedules to avoid peak demand periods and provide essential services such as frequency regulation.

These services could offer an alternative revenue stream for both homeowners and charging station operators.

The NDRC’s announcement also outlined responsibilities for various stakeholders: power grid companies will manage the pilots, provincial governments will oversee the development of charging infrastructure, and the energy regulator will facilitate the integration of V2G vehicles into power trading.

In 2023, the NDRC outlined plans to establish over 50 pilot programs by 2025. However, industry experts note several challenges to the widespread adoption of V2G technology, including the need for improved battery technologies and the development of viable business models.