China Launches EV Projects to Stabilise Power Supply

  • China plans to launch grid-connected car projects in nine cities, integrating electric vehicles (EVs) into the power grid.
  • The initiative aims to balance electricity demand and create new revenue opportunities for EV owners.

China has launched grid-connected car projects in nine cities to balance electricity demand and ensure a stable power supply. The initiative will integrate the country’s growing electric vehicle (EV) fleet with the power grid, allowing vehicles to act as batteries and support electricity supply during peak demand.

The National Development and Reform Commission (NDRC) and the national energy regulator announced on Wednesday, April 2, that authorities will roll out 30 pilot projects in cities including Beijing, Shanghai, Shenzhen, and Guangzhou.

Most of these projects will focus on vehicle-to-grid (V2G) technology, which enables EVs to store electricity, feed it back into the grid, and adjust charging times to avoid peak hours. The system will also provide services such as frequency regulation.

The government introduced regulations last year to enhance the integration of new energy vehicles with the grid. Officials have expressed concerns that rapid EV adoption could strain power generation and transmission systems.

Under the plan, power grid companies will set up the pilots, while provincial governments will develop the charging infrastructure. The energy regulator will oversee the participation of grid-connected EVs in power trading.

Authorities believe the initiative will create a new revenue stream for EV owners and charging station operators by compensating them for supplying power back to the grid.

China’s state planner previously set a goal to establish over 50 pilot programmes by 2025. However, industry experts warn that large-scale V2G adoption still faces challenges. They point to the need for viable business models and improvements in battery technology, which the NDRC also highlighted in its 2024 policy guidelines.

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