On April 2, 2025, the National Development and Reform Commission, along with three other departments, released a notice regarding the first batch of pilot programs for Vehicle to Grid (V2G) interactions. This initiative includes nine cities and 30 projects, aimed at fostering the integration of electric vehicles with the power grid.
The nine cities involved are: Shanghai, Changzhou, Hefei, Huaibei, Guangzhou, Shenzhen, Haikou, Chongqing, and Kunming. The 30 projects are spread across 16 provinces and municipalities, including Beijing, Tianjin, Shanghai, Chongqing, Jiangsu, Shandong, and Guangdong. Following the announcement of the pilot programs, local governments are expected to introduce corresponding support and incentive measures.
Industry experts believe there will likely be second and third batches of pilot programs, marking the transition of V2G from a technical experiment to a commercial exploration phase. V2G involves electric vehicles interacting with the power grid through charging stations, primarily through two modes: orderly charging (where charging power and time are controlled) and bidirectional charging and discharging (where vehicles can both charge and discharge energy). The technology aims to alleviate the impact of electric vehicles on grid stability and supports the development of a new energy system and power supply structure.
Both major grid companies, Southern Power Grid and State Grid, are actively promoting V2G. Technically feasible, V2G can reduce the costs associated with peak regulation and secure operations, which contributes to its commercial value. Charging station operators, electric vehicle manufacturers, and related power system companies are eager to experiment with V2G and explore viable business models.
However, government and corporate enthusiasm does not necessarily translate to active participation from electric vehicle owners. For many owners, the economic benefits are currently minimal. For instance, discharging energy over several hours might only yield a profit of around 20 yuan, coupled with depreciation costs on the battery, making the transaction less appealing. Currently, lithium-ion batteries have a lifespan of 1,000 to 2,000 charge/discharge cycles for ternary lithium batteries, and 3,000 to 5,000 for lithium iron phosphate batteries. Thus, establishing an attractive business model is crucial for the successful implementation of V2G.
The pilot notice outlines three key directions for promoting V2G in the selected cities and projects: first, urging local departments responsible for charging facilities to actively advance pilot construction for effective results; second, ensuring that power grid companies provide support services like grid access and electricity measurement while optimizing grid operation; and third, requiring the National Energy Administration to enhance electricity market trading rules to support large-scale participation in V2G.
A representative from a power grid company mentioned that the pilot notice signifies central policy recognition of V2G, which will help mature related policies, technologies, and business models. QiYuan Xindong Company, a provider of energy services for new energy commercial vehicles, has two projects included in the first batch of pilots. One of these projects in Shanghai can connect 500 new energy heavy trucks, with a total battery capacity of 200,000 kilowatt-hours, potentially discharging up to 260,000 kilowatt-hours annually—equivalent to the annual electricity consumption of 500 households.
Since 2020, China has been experimenting with V2G. The State Council issued the “New Energy Vehicle Industry Development Plan (2021-2035)” in November 2020, emphasizing the need to enhance energy interaction between new energy vehicles and the power grid. In the following year, State Grid Electric Vehicle Service Company established 42 V2G projects and 609 terminals in 15 provinces, allowing nearly 4,000 electric vehicles to engage in V2G.
Major electric vehicle manufacturers, including Great Wall, Geely, GAC, and NIO, began producing vehicles with V2G capabilities around 2020. NIO has established a demonstrative charging and swapping station capable of discharging energy at its global headquarters and R&D center in Shanghai.
In recent years, the State Council and the National Development and Reform Commission have issued guidelines to further develop high-quality charging infrastructure and enhance the interaction between new energy vehicles and the power grid. The objective is to establish a foundational technical standard for V2G by 2030, improve market mechanisms, and achieve large-scale application of V2G, promoting intelligent and orderly charging while integrating new energy vehicles into the electrochemical energy storage system.
Since 2025, large-scale V2G has begun to materialize. In January, Southern Power Grid’s Guangdong branch organized a flexible response event that attracted 421 charging operators and 5,312 charging stations, guiding over 10,000 new energy vehicles to optimize their charging times. In March, Southern Power Grid facilitated the first interprovincial V2G interaction, involving over 100,000 electric vehicles across five provinces, with interactions exceeding 500,000 kilowatt-hours.
Liu Jun, head of energy technology cooperation at NIO, stated that the main challenge for larger-scale V2G is not technology but standardization, urging for a swift unification of V2G-related standards. From the perspective of electric vehicle owners, the current V2G initiatives lack sufficient appeal. During the January event organized by Guangdong Power Grid, charging during a specific hour could save car owners 50 yuan; however, most charging stations are slow chargers, limiting the charging rate to less than 10 kilowatt-hours per hour. When factoring in the increased costs due to battery wear from additional charge/discharge cycles, V2G transactions can be unattractive to average car owners.
To attract more car owners to participate in V2G, adjusting electricity market trading rules to widen the price difference between peak and off-peak hours is crucial. Industry experts estimate that a price difference exceeding 1.5 yuan per kilowatt-hour would incentivize owner participation in V2G. With this differential, trading 30 kilowatt-hours daily could potentially recover half the cost of an electric vehicle over five to ten years. Currently, the peak-off-peak price difference is less than 1 yuan.
The battery swapping model is considered more advantageous for V2G than traditional charging. Companies like CATL, Sinopec, and NIO are actively promoting this model. On April 2, 2025, Sinopec and CATL announced plans to jointly build no fewer than 500 swapping stations this year, with a goal of establishing 10,000 in the future. NIO has already set up 3,243 swapping stations nationwide and has also launched five bidirectional swapping stations in Zhejiang and Shanghai to test their capabilities as energy storage tools in the new power system.
Liu Jun noted that a swapping station can generally accommodate the energy equivalent of 20 electric vehicles, providing more certainty in scheduling compared to private electric vehicles, along with a larger dispatchable capacity. QiYuan Xindong has established over 1,300 heavy truck swapping stations nationwide, capturing over 70% of the market share. Wu Zhenlin believes that swapping stations and battery bank operators are currently the main participants in V2G and should encourage commercial electric vehicle companies to engage in this interaction. For individual users, there is a need to explore more diverse business models for V2G.
