China launches automotive project connected to grid to balance power supply
Colleen Howe
Beijing (Reuters) – China plans to launch pilot projects in nine cities that will use the country’s growing fleet of electric vehicles as batteries to support power on the grid, which is powered on the grid when needed.
The move follows rules issued by the National Planners last year by the National Development and Reform Commission (NDRC) to strengthen the integration of new energy vehicles with the grid, which involves the rapid adoption of electric vehicles that will overwhelm the power generation and transmission systems.
According to an announcement by the NDRC and energy regulators, most of the 30 urban projects, including Beijing, Shanghai, Shenzhen and Guangzhou, are vehicle-to-grid or V2G.
The car will act as a battery, store the power supply and send it back to the grid. Cars connected to the grid can also adjust their charging time to avoid peak periods and provide critical services such as frequency adjustment.
Providing these services may become an alternative source of revenue for homeowners or charging station operators.
According to the notice, the power grid company is responsible for setting up pilots, and the provincial government should lead the development of paid facilities. The task of the energy regulator is to support vehicle applications connected to the grid to participate in power transactions.
Last year, NDRC said it would set up more than 50 pilot programs in 2025.
However, industry experts say there are many obstacles to overcome before adopting V2G at scale, such as developing viable business models. NDRC also said that battery technology needs to be improved in the 2024 regulations.
(Reported by Colleen Howe; Editor of Sonali Paul)
