Pilot projects turn EVs into batteries for power grid

China's recent pilot projects to use electric vehicles as batteries to shore up power supply on the grid during spikes in demand are expected to create significant opportunities for the sector, said industry experts and company executives.

The National Development and Reform Commission recently announced 30 projects to boost vehicle-to-grid (V2G) interaction across nine cities in China — including Beijing, Shanghai, and Guangdong province's Shenzhen and Guangzhou — aiming to support the construction of new energy and power systems and promote the integration and interaction of new energy vehicles with power grids.

V2G technology allows EVs to function as flexible energy resources. They can store electricity and send it back to the grid, so as to avoid peak demand while also becoming an alternative revenue stream for homeowners or operators of charging stations, said the commission.