China’s Reform Commission sets out V2G planning recommendations

China’s state planner National Development and Reform Commission (NDRC) has released reform recommendations on how China, the largest EV market globally, can optimally integrate electric vehicles into power grid planning.

Through the recommendations, the NDRC calls on the establishment of a technical standard system for vehicle-to-grid (V2G) interaction by 2025, by when charging peak and time-of-use electricity prices should be fully implemented.

The specific reform recommendations include:

1. Promote research on core technologies of V2G interaction, by:

• Increasing efforts to research key technologies for power batteries
• Developing a reliable, flexible and low energy consumption V2G interaction system architecture and bidirectional charging and discharging equipment
• Researching key technologies for grid-friendly charging and battery stations, as well as technologies for accurate prediction and aggregated control of distributed V2G interaction
• Strengthening research on key technologies for V2G interaction information exchange and information security.

2. Accelerate the establishment of a V2G interaction standard system, by:

• Developing and revising national and industry standards related to V2G interaction
• Formulating and revising key technical standards for charging and discharging equipment and technical specifications, vehicle-pile communications, grid-connected operation, two-way metering, charging and discharging safety protection, information security and other key technical standards in two-way charging and discharging scenarios by the end of 2025
• Improving the standard supporting testing and certification system while promoting the implementation of intelligent and orderly charging standard requirements in vehicle production access and charging pile production, installation and acceptance.

3. Optimise supporting electricity prices and market mechanisms, by:

• Encouraging the formulation of independent peak-valley time-of-use electricity price policies for charging facilities with strong load guiding capabilities
• Fully applying residential peak-valley time-of-use electricity prices for charging by the end of 2025
• Studying and exploring the pricing mechanism for the discharge of EVs and charging stations to the power grid.
• Establishing and improving V2G interactive resource aggregation to participate in demand side management and market transaction mechanisms
• Encouraging bidirectional charging and discharging facilities to participate in pilot demonstrations of the power market through resource aggregation.

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4. Carry out demonstrations of two-way charging and discharging models that integrate new energy vehicles, by

• Encouraging power grid enterprises to jointly carry out two-way charging and discharging pilot projects with charging companies, vehicle companies, etc. in residential communities.

5. Improve the interaction level of battery charging and swapping facilities, by:

• Promoting intelligent and orderly charging facilities
• Establishing and improving the smart and orderly charging management system and process for residential communities while clarifying the responsibilities and rights of power grid companies, third-party platform companies, new energy vehicle users and other parties
• Encouraging power grid enterprises to cooperate with charging operators to establish an efficient interaction mechanism
• Exploring and studying power access capacity assessment methods and related standards and specifications for different types of intelligent and orderly charging and swapping facilities
• Encouraging charging operators to build integrated PV, storage and charging stations according to local conditions to promote the integrated development of transportation and energy.

6. Systematically strengthen support capabilities of power grid enterprises, by:

• Incorporating V2G interaction into power demand side management
• Supporting power grid enterprises to carry out V2G interactive management in combination with new power load management systems
• Improving power grid demand side management and power regulation platform functions to provide basic support and technical services for V2G interactive aggregation transactions
• Accelerating the improvement of V2G interactive supporting grid connection, metering, protection control and information exchange requirements and technical specifications
• Optimising power grid clearing and settlement mechanisms and supporting V2G interactive load aggregators to directly participate in the clearing and settlement of the power market.

According to research from the International Energy Agency, in 2022, China accounted for 60% of global electric car sales, maintaining its dominance in the sector.

They add that more than half of the electric cars on roads worldwide are now in China, with the country already exceeding its 2025 target for new energy vehicle sales.

And with the increase in EV uptake, demand will continue to rise similarly on the power grid, necessitating better integrated V2G planning.

Through the announcement, the NDRC stated they will work alongside the country’s National Energy Administration and relevant departments to implement the above reform recommendations.