China will start projects for grid-connected cars to stabilize the power supply

China intends to implement grid-connected automobile projects in order to maintain a steady supply of electricity and balance demand.

The government said Wednesday that China intends to launch pilot projects in nine locations to connect the nation’s growing fleet of electric vehicles (EVs) into the power grid. This will enable the EVs to serve as batteries and support the supply of electricity during periods of high demand.

This endeavor comes after the National Development and Reform Commission (NDRC) last year issued regulations to improve the grid integration of new energy vehicles in response to worries that the rapid adoption of EVs could put a burden on transmission and power generating systems.

The NDRC and the country’s energy regulator said that the majority of the 30 projects, which are scheduled to start in Beijing, Shanghai, Shenzhen, and Guangzhou, would concentrate on vehicle-to-grid (V2G) technology. 

Electricity can be stored and fed back into the grid by EVs thanks to this mechanism, which also allows them to modify charging schedules to avoid peak hours and offer services like frequency regulation.

By rewarding EV owners and charging station operators for returning electricity to the grid, the action may also generate extra income for them.

Under the plan, provincial governments would take the lead in developing the charging infrastructure, while electricity grid firms will be in charge of setting up the pilots. The energy regulator’s job is to make it easier for grid-connected EVs to participate in power trading.

In the past, China’s state planner declared that more than 50 pilot programs would be established by 2025. Industry insiders caution that there are still obstacles to widespread V2G adoption, such as the requirement for workable business plans and advancements in battery technology, which were also mentioned in the NDRC’s 2024 policy recommendations.