The first batch of pilot projects has been announced, allowing electric vehicles to sell electricity back to the grid. In recent years, both national and local governments have continuously issued policies to promote the development of vehicle-grid interaction. Recently, four departments have released the first pilot list for large-scale vehicle-grid interaction applications, marking the initiation of cross-provincial vehicle-grid interaction in the country and potentially accelerating commercial implementation, with listed companies actively positioning themselves in this area.
The National Development and Reform Commission, along with three other departments, issued a notice to support the construction of a new energy system and a new power system, promoting the integration of new energy vehicles with the power grid. Following expert evaluations, the first batch of vehicle-grid interaction pilot projects includes 30 projects, such as the V2G vehicle-grid interaction collaborative regulation pilot project based on new energy storage in Beijing, as well as projects in nine cities, including Shanghai, which has the highest number of pilot projects at four. These projects cover various scenarios such as private charging piles in residential communities, full-scenario charging and swapping stations, and heavy-duty truck charging and swapping stations. Chengdu follows with three pilot projects, while Chongqing, Wuhan, and Haikou have two each.
Previously, vehicle-grid interaction pilots have been launched nationwide. According to Southern Power Grid, the largest vehicle-grid interaction in the country commenced on March 28, with over 100,000 new energy vehicles participating and an interaction volume reaching 500,000 kilowatt-hours. Guangdong, Guangxi, Yunnan, Guizhou, and Hainan provinces simultaneously conducted vehicle-grid interaction, with more than 100,000 new energy vehicles involved across 63 cities. This marks the first large-scale vehicle-grid interaction and inter-provincial collaboration in the country.
The long-term market potential for vehicle-grid interaction is vast. Vehicle-to-grid (V2G) technology allows electric vehicles to sell stored energy back to the grid when not in use, or to adjust charging speeds based on electricity prices, making it a superior energy management solution compared to orderly charging. Vehicle-grid interaction can effectively utilize the flexibility of power batteries as controllable loads or mobile energy storage, providing essential support for the efficient and economical operation of the new power system.
In recent years, both national and local levels have continued to release policies to promote the development of the vehicle-grid interaction industry. By the end of 2023, the National Development and Reform Commission and other departments mentioned in the implementation opinions on enhancing the interaction between new energy vehicles and the grid that by 2030, China aims to have a basic framework for vehicle-grid interaction technology standards and achieve large-scale application of this technology. Local initiatives in cities like Shanghai, Shenzhen, and Jiangsu have promoted the industry through pilot projects and work plans.
According to a report from Donghai Securities, the increasing number of electric vehicles and their energy capacity is driving up the utilization rate of charging piles, with continuous policy stimulation improving the profitability of charging operators. Leading companies have begun to turn losses into profits. With the formal introduction of vehicle-grid integration policies in early 2024 and China’s inherent advantages in V2G development, related industries are actively following suit. The average increase in vehicle-grid interaction concept stocks has exceeded 7% this year.
Statistics from Securities Times Data show that there are 27 concept stocks in the A-share market related to vehicle-grid interaction, which have generally risen this year, with an average cumulative increase of 6.98%. Stocks like Shenghong Co., Hanchuan Intelligent, and Green Energy Hui Charge have seen significant increases, with cumulative gains of 33.27%, 32.85%, and 24.74%, respectively. Shenghong Co. has been on a continuous rise since last September, with a peak increase of over 120%. Although there has been a slight correction since mid-March, the stock price has still doubled compared to last year’s low. The company has stated on investor platforms that the market application of V2G is still in the exploratory stage, with their new products designed to be compatible with V2G for future iterations.
This year, eight concept stocks in the vehicle-grid interaction sector have undergone institutional research, with Daotong Technology and Tuobang Co. leading with over 100 institutional inquiries each. Both Daotong Technology and Tuobang Co., along with Shenghong Co. and Yuanguang Software, have attracted foreign institutional attention, with three, three, one, and one foreign institution conducting research, respectively. Daotong Technology anticipates significant profit growth in 2024, aiming for a net profit of 641 million yuan, a year-on-year increase of 257.59%, marking a new high since its listing. The company plans to comprehensively advance AI applications in the energy trading sector and actively participate in V2G collaboration and virtual power plant energy trading.
From a performance standpoint, six concept stocks, including Daotong Technology, Terui De, and Tuobang Co., have reported year-on-year growth in net profit.
