China plans to launch pilot projects in nine cities that will use the country's growing fleet of electric vehicles as batteries to reinforce the power supply to the grid during peak demand, the government announced today.

The initiative follows rules issued last year by the National Development and Reform Commission (NDRC), which is responsible for state planning, to strengthen the integration of new energy vehicles into the grid system, due to concerns that the rapid adoption of electric vehicles could overload generation and transmission systems.

Most of the 30 projects in cities such as Beijing, Shanghai, Shenzhen and Guangzhou are vehicle-to-grid or V2G, according to the announcement by the NDRC and the energy regulator.

The cars would act as batteries, storing energy and sending it back to the grid. Cars connected to the grid can also adjust their charging times to avoid peak periods and provide critical services such as frequency regulation.

Providing these services could become an alternative revenue stream for the owners or operators of charging stations.

According to the notice, electricity grid companies are responsible for setting up pilot projects and provincial governments must lead the development of charging facilities. The energy regulator is in charge of supporting the participation of grid-connected vehicle applications in electricity trading.

Last year, the NDRC said it would set up more than 50 pilot programs by 2025. However, industry experts say there are a number of obstacles to overcome before the large-scale introduction of V2G, such as the development of viable business models. The NDRC also stated in the 2024 rule that battery technologies need to be improved. (Text: Reuters)