China to Turn 100 Million Electric Cars into Mobile Batteries to Safeguard the Grid

In 2024, China launched 30 pilot V2G programs (Vehicle-to-Grid) in nine cities, including Beijing, Shanghai and Shenzhen. The objective was to tap into the millions of electric vehicles on the road to ease pressure on the power grid and explore new business models for drivers and charging-point operators.

Over the years, it has progressed from a pilot trial to becoming a key state policy within its Five-Year Plan launched this year.

Goal: turning 100 million electric vehicles into mobile batteries

China aims to reform its electrical system, and the first step has been the launch of the “Fifteenth Five-Year Plan for the Development of a New Power System (2026-2030)”.

Among the main lines is a massive investment in power grids — more than $722 billion — and the construction of 40 million charging points across the country (including 300,000 high-power points) to meet the operational needs of more than 110 million electric vehicles.

But the most striking aspect is the investment in V2G systems with the aim of turning 100 million electric vehicles into mobile batteries. China has set a goal to integrate 50 gigawatts (GW) of flexible charging capacity through V2G technology by 2030, representing a fourfold increase in five years.

And how does it work? Electric vehicles are charged during periods of low demand — when electricity prices are low — and they discharge energy back to the grid during peak demand, turning the batteries of millions of vehicles into a distributed energy resource capable of stabilizing the power grid, as has already been demonstrated in several Chinese cities.

Now, it is time for the brands to adapt:

• BYD has completed V2G compatibility testing and is capable of equipping its entire vehicle lineup with this feature according to market demand.
• GAC Group has established a V2G microgrid network spanning 213 cities, aiming to achieve a discharge volume greater than 1.5 million kWh by 2026.
• NIO has integrated V2G technology into its fifth-generation battery-swap stations and has launched pilot projects in Beijing, Shanghai, Shenzhen and Hefei.

Challenges facing this plan

The problems are always the same: bidirectional chargers are very expensive (between €1,950 and €2,600), compatible-model options are limited (only some BYD, NIO or GAC Aion vehicles support V2G) and there is a persistent concern about battery degradation. A Fortune Business Insights report points to degradation as one of the main barriers for consumers.

Moreover, the 2022 international communication standard that enables bidirectional energy transfer between electric vehicles and chargers with CCS connectors, ISO 15118-20, was revised in subsequent years and has yet to be implemented consistently and universally.

Furthermore, regional differences in electrical grid codes and regulations mean that electric vehicles and chargers can only use V2G charging within a specific country or region. Harmonizing grid codes and improving the standardization of communication links, as proposed by UNECE, could facilitate the global interoperability of electric vehicles, chargers, and market participants, according to the International Energy Agency.

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