China Launches First Batch of V2G Pilot Projects to Scale Up Vehicle-to-Grid Interaction
China has taken a significant step towards scaling up vehicle-to-grid (V2G) interaction with the launch of its first batch of pilot projects. The National Development and Reform Commission, the National Energy Administration, and two other government departments have jointly announced 39 pilot cities and projects aimed at promoting the large-scale application of V2G technology. This initiative includes nine cities such as Shanghai, Changzhou, and Guangzhou, as well as 30 projects, including Beijing’s V2G collaborative regulation pilot based on new energy storage.
V2G technology allows electric vehicles (EVs) to function as mobile energy storage units, exchanging power with the grid. During periods of low electricity demand, EVs can charge efficiently, while during peak demand, they can feed electricity back into the grid. This bidirectional interaction helps balance the grid and enhances its stability.
The need for V2G technology has become increasingly urgent as China’s EV population continues to grow. According to data released by the Ministry of Public Security in January 2024, the number of new energy vehicles in China reached 31.4 million by the end of 2023. Without proper management, the large-scale and uncoordinated charging of these vehicles could place immense pressure on the power system.
Balancing Grid Load
On March 28, a demonstration of V2G technology took place at the Nansha Huanshi West Road Multi-Supercharging Station in Guangzhou. An EV participated in the grid interaction, responding to the grid’s demand for valley filling. The entire process, including automatic identification, charging, and settlement, was completed in just 80 seconds by a charging robot.
Simultaneously, at the Maluanshan Country Park Charging Station in Shenzhen, BYD’s pure electric heavy-duty trucks joined the V2G initiative for the first time. Each truck can discharge up to 300 kWh of electricity, equivalent to the daily power consumption of 30 households or enough to charge 15,000 smartphones.
This event, organized by the China Southern Power Grid, marked the first cross-provincial V2G interaction in China. It covered 63 cities across Guangdong, Guangxi, Yunnan, Guizhou, and Hainan, involving over 100,000 EVs and exchanging more than 500,000 kWh of electricity. Notably, the Shenzhen Lianhuashan Supercharging Station achieved a maximum discharge power of 1,052 kW, marking a true megawatt-level V2G interaction and setting a national record for single-day V2G reverse discharge exceeding 10,000 kWh.
According to Li Minhong, Market Director of China Southern Power Grid, the event facilitated the consumption of 500,000 kWh of renewable energy, equivalent to the daily power consumption of 50,000 households. EV owners earned over 400,000 yuan in incentives. The event successfully demonstrated the feasibility of V2G in various scenarios, including reverse discharge, smart charging, and valley filling, while also validating advanced technologies such as liquid-cooled supercharging and remote control.
“Large-scale V2G interaction reduces the grid’s peak-to-valley difference, making EVs a crucial resource for ensuring the stable operation of the power system. In the long run, it can save costs on grid and power generation investments,” said Hu Zechun, Deputy Director of the Power System Research Institute at Tsinghua University.
Exploring Commercial Applications
As electricity consumption and the share of renewable energy continue to rise, the pressure on the power grid is increasing. V2G technology, which can participate in peak shaving and demand response, has garnered significant attention for its commercial potential. Wang Qi, Deputy General Manager of China Southern Power Grid Electric Vehicle Service Co., Ltd., believes that the sustainable business model for V2G remains a critical challenge, and there is an urgent need to develop commercially viable applications.
The National Development and Reform Commission’s notice on promoting the large-scale application of V2G pilot projects emphasizes the exploration of advanced, replicable business models centered on V2G projects, with the goal of driving large-scale V2G development through market mechanisms.
Several companies and institutions have already begun taking action. For example, the “Automotive + Power” dual-chain collaborative V2G “city-level benchmark” pilot project, led by Guangzhou Power Supply Bureau and GAC Group, has been selected as one of China’s first batch of V2G pilot projects. GAC Group has already launched six V2G-enabled vehicle models, with sales exceeding 30,000 units.
“Guangzhou will formulate relevant supporting policies to encourage local automakers to strengthen V2G vehicle R&D and sales, explore the construction of a ‘power charging, storage, and discharging network,’ and promote the participation of V2G facility users and aggregators in local virtual power plant operations,” said Wang Yuyin, Deputy Director of the Guangzhou Municipal Industry and Information Technology Bureau.
Wang Gang, Operations Director of Nanning Teld New Energy Technology Co., Ltd., believes that participating in V2G will become a new growth point for businesses, enhancing their competitiveness.
“V2G is not just a technological breakthrough but also a restructuring of production relationships. It will drive the transformation of China’s new energy vehicle industry from ‘capacity output’ to ‘system solution provider,'” said Liu Zhihui, General Manager of GAC Energy Technology Co., Ltd.
Addressing Promotion Challenges
While the prospects for V2G are promising, its large-scale application faces three major challenges.
First, the transaction market mechanism needs improvement. “The power market needs innovation to adapt to the characteristics of V2G, enabling small-scale and widely distributed resources to participate effectively in market transactions,” said Chen Haoyong, a professor at the South China University of Technology’s School of Electric Power. He suggested establishing a mechanism that integrates centralized and distributed approaches, aggregating the electricity of dispersed EVs to participate in traditional centralized power market transactions. EVs, as distributed resources, could use blockchain technology for peer-to-peer distributed transactions, achieving overall coordination between bottom-level distributed transactions and top-level centralized transactions.
In this regard, many regions are already exploring solutions. For example, China Southern Power Grid has built a “wholesale + retail” dual-driven model. On the wholesale side, the grid company achieves market-oriented coordination through valley filling, V2G reverse discharge, and smart charging. On the retail side, operators attract EV participation through charging discounts, cash subsidies, and reward points.
Second, the enthusiasm of participants needs to be boosted. “Frequent charging and discharging can accelerate battery aging. If the subsidies from charging cannot cover the losses from battery degradation, will vehicle owners be willing to participate? Additionally, how can battery lifespan be continuously monitored?” Chen Haoyong listed several issues affecting vehicle owners’ willingness to participate.
The enthusiasm of automakers and charging station operators also needs to be increased. Most new energy vehicles have not yet enabled reverse power transmission to the grid, and the number of V2G-enabled charging stations is still limited.
Chen Haoyong suggested that it is necessary to change the habits and perceptions of users and automakers. More importantly, it is crucial to accelerate the development of key technologies such as V2G charging and discharging, battery lifespan safety, and improve battery management technology.
Third, the standard system needs to be strengthened. In China’s current technical standards for new energy vehicles and charging infrastructure, the system for V2G functionality and information security still needs to be established. Additionally, the incompatibility between V2G charging stations and vehicle V2G communication protocols remains an issue.
“We are exploring a multi-level market system of ‘grid electricity price + demand response + power market,’ collaborating with upstream and downstream industry chains to build a V2G ecosystem, jointly promoting the formulation of equipment standards, technical standards, and market standards, and supporting the application of smart energy, power HarmonyOS, and autonomous driving technologies,” said Feng Qingliao, Market Department General Manager of Guangzhou Power Supply Bureau.
