According to the news from the National Development and Reform Commission on September 10, the Office of the National Development and Reform Commission and other departments issued a notice on promoting the pilot work of scaling up the application of vehicle-grid interaction. It mentioned that, based on the principle of "innovation guidance and pilot testing", it will comprehensively promote orderly charging of new energy vehicles, expand the scale of vehicle-to-grid (V2G) projects, enrich the application scenarios of vehicle-grid interaction, improve the policy mechanisms for scaling and sustainable vehicle-grid interaction with cities as the main focus, explore market-oriented mechanisms to guide the scaled development of vehicle-grid interaction with advanced technology and clear replicable business models as the main focus of V2G projects. Participating pilot areas should fully implement peak-valley time-of-use electricity pricing, strive to concentrate 60% or more of the annual charging capacity in the off-peak period, and concentrate 80% or more of the privately charged electricity in the off-peak period. The total discharging power of participating V2G projects should not be less than 500 kilowatts in principle, and the annual discharge capacity should not be less than 0.1 million kilowatt-hours, with appropriate reductions allowed in the western regions.

It mentioned the role of the electricity market incentives. Gradually improve the transaction rules for aggregating vehicle-grid interaction resources to participate in the electricity market, promote the scaling and regular participation of charging load in the electricity market transaction, support the exploration of business models for load aggregation participation in the electricity market, promote the cultivation of various new forms of electricity market entities, gradually form clear models and stable development, and possess conditions for promotion of load aggregation business models. Encourage V2G projects to aggregate and participate in electricity spot trading, green electricity trading, and storage capacity leasing markets to verify the equivalent energy storage potential of V2G resources.

Original text:

The notice from the Office of the National Development and Reform Commission and other departments on promoting vehicle-grid interaction

the pilot work of scaling up the application of vehicle-grid interaction

Development and Reform Commission Energy [2024] No. 718

Development and Reform Commissions, Energy Bureaus, industrial and information technology authorities, market supervision departments of all provinces, autonomous regions, municipalities directly under the central government, and Xinjiang Production and Construction Corps, as well as institutions dispatched by the National Energy Administration, State Grid Corporation of China, China Southern Power Grid Co., China Electricity Council:

In order to implement the strategic deployment of carbon peak and carbon neutrality by the CPC Central Committee and the State Council, support the construction of a new energy system and a new power system, promote the integration and interaction of new energy vehicles with the power grid, in accordance with the relevant requirements of the State Council on further building a high-quality charging infrastructure system (State Office Issuance [2023] No. 19) and the implementation opinions of the National Development and Reform Commission and other departments on strengthening the integration and interaction of new energy vehicles with the power grid (Development and Reform Energy [2023] No. 1721), the NDRC, NEA, Ministry of Industry and Information Technology, and SAMR will carry out nationwide large-scale application pilots of vehicle-grid interaction. The relevant matters are now notified as follows.

I. General requirements

Following the principle of 'innovation-driven, leading by example,' promote the orderly charging of new energy vehicles, expand the scale of Vehicle-to-Grid (V2G) projects, enrich the application scenarios of vehicle-grid interaction, improve the policy mechanisms for large-scale and sustainable vehicle-grid interaction with cities as the main entity, explore commercial models with advanced technology, clear models, and replicable promotion based on V2G projects, and strive to guide the large-scale development of vehicle-grid interaction through market mechanisms. Participating pilot areas should fully implement peak and off-peak electricity prices, strive to concentrate more than 60% of annual charging volume during off-peak hours, with over 80% of privately charged energy concentrated during off-peak hours. The total discharge power of V2G projects in pilot areas should not be less than 500 kilowatts, with an annual discharge of not less than 0.1 million kilowatt-hours, which can be appropriately reduced in western regions.

II. Key Tasks

(I) Utilize the incentive role of the electricity market. Gradually improve the trading rules of vehicle-grid interaction resource aggregation to participate in the electricity market, promote the large-scale and normalized participation of charging loads in electricity market transactions, support the exploration of business models for load aggregation companies participating in the electricity market, promote the cultivation of various new business entities in the electricity market, gradually form clear models, stable development, and conditions for promotion of the load aggregation business model. Encourage V2G projects to aggregate and participate in electricity spot markets, green energy trading, energy storage capacity leasing, etc., to verify the equivalent energy storage potential of V2G resources.

(II) Improve price and demand response mechanisms. Establish and improve a peak and off-peak electricity price mechanism for residential charging, encourage the establishment of a differentiated price system around residential charging loads and residential living loads, optimize peak and off-peak period settings, and reasonably expand peak and off-peak price differentials; explore the pricing mechanisms for the discharge of the power grid by new energy vehicles and charging stations. Innovate demand response mechanisms, enrich demand response varieties, enhance user participation frequency and response scale.

(III) Strengthen the promotion of intelligent and orderly charging applications. Develop and improve technical requirements for intelligent charging facilities, promote the construction, replacement, or retrofitting of intelligent and orderly charging stations. Promote the establishment of pilot communities for intelligent and orderly charging, establish a management system for intelligent and orderly charging in residential communities, effectively enhance individual access capabilities for intelligent charging stations while ensuring the safe operation of the power grid. Improve the interactive capabilities of charging and swapping stations, research and optimize methods for capacity determination and grid connection rules, and carry out pilot projects to optimize and enhance the access capacity of intelligent charging and swapping stations.

(4) Promote the collaborative innovation of V2G technology and models. Explore V2G technologies and models that efficiently integrate with parks, buildings, and residences to meet the V2G application needs of public and private vehicles. Support relevant enterprises in jointly carrying out V2G project applications and encourage vehicle manufacturers and battery companies to improve battery quality assurance systems and enhance battery technology. Explore the use of the National Monitoring and Power Battery Recycling Traceability Comprehensive Management Platform for V2G project battery state assessment.

(5) Strengthen work guarantee and effective guidance. Strengthen the implementation and application of standards to support the scaled application of vehicle-grid interaction. Actively leverage the monitoring service platform for charging facilities, establish a sound mechanism for vehicle-grid interaction data access and evaluation. Strengthen the protection of user rights, enhance publicity and popularization, and increase user participation willingness. Enhance the guarantee from power grid enterprises and provide services such as resource access, grid connection testing, grid connection measurement, dispatch operation, and settlement.

III. Organization and Implementation

(1) The departments responsible for the development of charging facilities in each province (region, city), together with relevant departments and institutions dispatched by the National Energy Administration, are requested to recommend cities and V2G projects in their respective areas that are willing to participate in scaled-up vehicle-grid interaction. In principle, each province (region, city) can recommend no more than one city, and relatively mature regions such as the Yangtze River Delta, the Pearl River Delta, Jing-Jin-Ji-Lu, and Chuan-Yu can relax the limit to no more than two cities. In principle, each province (region, city) can recommend no more than 5 V2G projects (no more than 1 battery swapping project), and a single project can be a dispersed facility set controlled by the same implementing entity in the same city.

(2) The departments responsible for the development of charging facilities in each province (region, city) are requested to compile relevant materials according to the requirements in the attachment, and send the printed materials with official seals to the Power Department of the National Energy Administration before October 31, 2024. The National Development and Reform Commission, the National Energy Administration, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation will organize expert reviews in due course, and select no less than 5 cities with good development foundation, strong policy support, and strong driving effects, as well as no less than 50 V2G projects to be included in the pilot scope.

(3) The departments responsible for the development of charging facilities at all levels should strictly implement their main responsibilities, enhance collaboration with relevant departments, actively innovate policy mechanisms and regulatory methods, and encourage related enterprises to explore new technologies, new industries, new formats, and new models for vehicle-grid interaction. Provincial price regulatory departments should study and improve supporting electricity price policies such as peak-valley time-of-use pricing; electricity operation regulatory departments should gradually improve demand response mechanisms; institutions dispatched by the National Energy Administration should promote the improvement of power market access conditions and transaction rules in their jurisdictions, enrich power transaction varieties, and leverage market mechanisms and electricity price policies to support the development of vehicle-grid interaction work.

(4) The National Development and Reform Commission, the National Energy Administration, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation will coordinate and guide the pilot work of scaled-up vehicle-grid interaction in various provinces (regions, cities), and coordinate with local relevant departments to resolve practical issues in the work, and promote the nationwide popularization of typical experiences and mature models in a timely manner.

Office of the National Development and Reform Commission

National Energy Administration Comprehensive Department

Office of the Ministry of Industry and Information Technology

General Office of the State Administration for Market Regulation

August 23, 2024

This article is selected from the National Development and Reform Commission, edited by Zhixun Finance & Economics: Chen Wenfang.