China to launch EV grid projects to support power system

This allows cars to function as energy storage units, contributing power back to the grid

China has announced ambitious plans to pilot projects in nine cities aimed at utilizing the country’s expanding electric vehicle (EV) fleet as a supplemental power source during demand surges.

The initiative, disclosed by the National Development and Reform Commission (NDRC) and the energy regulator, underscores the nation’s commitment to innovating its energy infrastructure amidst the rapid adoption of EV technology.

These 30 pilot projects, distributed across key cities such as Beijing, Shanghai, Shenzhen, and Guangzhou, focus on “vehicle-to-grid” (V2G) technology. This allows cars to function as energy storage units, contributing power back to the grid and offering critical services like frequency regulation.

Additionally, grid-connected vehicles will optimize charging schedules to avoid peak electricity demand, potentially providing homeowners and charging station operators with a new revenue stream.

Power grid companies are tasked with spearheading these projects, while provincial governments will take the lead in developing required charging facilities. The energy regulator is also charged with ensuring the active participation of grid-connected vehicles in power trading markets.

The initiative aligns with last year’s announcement by the NDRC to establish over 50 pilot programs by 2025. However, challenges remain, including the need for viable business models and advancements in battery technology, as outlined in the NDRC’s 2024 guidelines.

This development reflects China’s broader strategy to enhance the integration of renewable energy sources and reinforce grid stability, with the EV sector poised to play a pivotal role in the country’s energy future.

Monitoring Desk
Monitoring Desk
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