Climate Cooperation China
On behalf of the International Climate Initiative (IKI)

New Policy Supports the Integration of new Energy Vehicles into the Power Grid

In January 2024, China’s National Development and Reform Commission (NDRC), in collaboration with the National Energy Administration (NEA), the Ministry of Industry and Information Technology (MIIT), and the State Administration for Market Regulation (SAMR), released implementation guidelines to enhance the integration of New Energy Vehicles (NEVs) into the electricity grid. This policy aims to establish a bidirectional vehicle-to-grid (V2G) system based on charging and swapping facilities, utilising the flexibility of EV batteries as controllable loads or mobile storage.

 

China aims to have a draft framework for V2G in place by 2025 and to complete the V2G technology standard system with a more refined market mechanism by 2030.

 

Key plans mentioned in the policy include:

  • Advance core V2G technologies: Battery technology shall be enhanced to achieve a lifespan of 3000 cycles or more under high-frequency bidirectional charging and discharging conditions. A reliable and efficient V2G system architecture will be developed, together with bidirectional charging equipment.
  • Establish V2G standards: The policy aims to accelerate the development and revision of national and industry standards for V2G, focusing on interaction interfaces, communication protocols, power regulation, reservation charging, and vehicle wake-up.
  • Optimise pricing and market mechanisms: The implementation of time-of-use electricity pricing policies for residential charging facilities with high load-shifting potential is planned. Also, differentiated pricing systems for residential charging loads and general household loads will be introduced to stimulate flexibility in various charging facilities.
  • Explore V2G demonstrations: The government intends to explore efficient integration models of NEVs with different scenarios such as industrial parks, buildings, and residential areas. Priority will be given to bidirectional charging for public sector vehicles such as government vehicles, rental vehicles, and public transportation vehicles.
  • Enhance charging and swapping facilities: Intelligent charging facilities will be promoted and existing charging piles will be gradually upgraded. A management system for charging in residential communities will be established. In addition, the policy calls for a definition of the responsibilities and rights of different actors such as grid companies, third-party platform enterprises, and NEV users.
  • Strengthen support for and assurance capabilities of grid companies: V2G will be integrated into electricity demand management, and electricity grid operators will be supported in V2G management with new load systems. Besides, grid connection and metering for V2G shall be improved, and grid clearing for V2G merchants shall be optimised.

 

The policy could benefit both NEVs and the power sector. In China, the current stock of NEVs has exceeded 20 million, which could function as mobile virtual power plants, bolstering the grid during peak demand and enhancing its regulation capabilities. NEV owners can also economically benefit by selling stored electricity back to the grid through charging stations, and the scale of China’s electric vehicle fleet may reach several hundred million in the next decade, amplifying the energy storage value.

 

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