As electric vehicles (EVs) gain momentum globally, China is pioneering a novel approach to utilize these vehicles not just for transportation, but as a power resource. This involves the deployment of two-way charging stations capable of sending power back to the grid during peak demand periods, utilizing vehicle-to-grid (V2G) technology.
China’s government has already established 30 V2G stations in cities like Beijing and Shanghai, with an ambitious target of 5,000 stations by 2027. If successful, officials estimate that by 2030, the technology could tap into 1 billion kilowatts of capacity from 100 million EVs, potentially reducing reliance on coal.
While China is committed to nationwide V2G adoption, the journey is fraught with challenges. In contrast, over 150 V2G projects in countries like Japan, South Korea, and the U.S. have struggled, mainly due to high costs and market barriers. As Alan Jenn of the Institute of Transportation Studies at UC Davis remarked, “V2G in China could certainly be propelled farther than other countries.”
China aims to leverage idle electric cars as mobile energy storage units, a concept supported by U.S. Department of Energy data that indicates vehicles are parked 95% of the time. This could allow EV owners to store inexpensive nighttime electricity for resale during peak hours, providing potential earnings.
However, the practical implementation of V2G faces hurdles. Currently, only limited models from automakers like BYD, Nio, and GAC Aion support V2G. Additionally, the cost of bidirectional chargers is significantly higher than standard chargers, making subsidies crucial for scalability.
The business model remains a critical issue. Mo Ke from RealLi Research highlights that projects are “heavily subsidized” and far from commercialization. Moreover, concerns about battery degradation persist, with a Fortune Business Insights report identifying it as a key deterrent for V2G adoption.
Despite these challenges, some EV owners are already reaping benefits. A government test revealed that owners could earn around $200 monthly by leveraging V2G, although these figures may change as the market evolves.
China’s reliance on coal and a state-controlled electricity grid complicates matters further, contrasting with regions like California, where dynamic pricing models exist. In Europe and the U.S., cost concerns have hampered widespread V2G adoption, despite technological feasibility.
Nonetheless, China is taking steps to address these issues. The European Union’s mandate for bidirectional charging by 2027 and V2G deployments in places like the Netherlands provide valuable models. “Few policymakers saw strong incentive for China to develop the V2G technology,” Qin Yudi of Lynkvertx noted, but the country is now exploring market-driven pricing structures.
Market observers remain split on the future of V2G in China. As Kai Li Lim from the University of Queensland stated, “The future of V2G is definitely here,” but it will require time and market adjustments, much like the country’s successful EV adoption.
Original Story at restofworld.org