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China to Launch Grid-Connected Car Projects to Stabilise Power Supply

China has planned to introduce grid-connected car projects aimed at balancing electricity demand and ensuring a stable power supply.

China plans to roll out pilot projects in nine cities to integrate the country’s expanding fleet of electric vehicles (EVs) into the power grid, allowing them to act as batteries and support electricity supply during demand spikes, the government announced on Wednesday.

The initiative follows regulations introduced last year by the National Development and Reform Commission (NDRC) aimed at enhancing the integration of new energy vehicles with the grid amid concerns that rapid EV adoption could strain power generation and transmission systems.

According to the NDRC and the national energy regulator, most of the 30 projects—set to launch in cities including Beijing, Shanghai, Shenzhen, and Guangzhou—will focus on vehicle-to-grid (V2G) technology. 

This system enables EVs to store electricity and feed it back into the grid, while also allowing them to adjust charging times to avoid peak hours and provide services such as frequency regulation.

The move could also create an additional revenue stream for EV owners and charging station operators by compensating them for supplying power back to the grid.

Under the plan, power grid companies will be responsible for setting up the pilots, while provincial governments will lead the development of charging infrastructure. The energy regulator has been tasked with facilitating the participation of grid-connected EVs in power trading.

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

Faridah Abdulkadiri

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