China's state planner has published new guidelines to improve the integration of new energy cars with the electric grid as the world's largest electric vehicle (EV) industry seeks to regulate its power consumption in the face of rising battery charge rates.

The new directive issued by China's National Development and Reform Commission (NDRC) on 4 January demands the development of preliminary technical standards to guide the integration of new energy vehicles into the grid by 2025.

By 2030, new energy vehicles are predicted to become a significant part of the country's energy storage system. One strategy to manage peak power demand is to encourage vehicles to charge during off-peak hours, such as in the middle of the night, using price signals. Another strategy is 'bidirectional' by encouraging 'vehicle-to-grid' (V2G) charging, where EV owners sell their batteries' power back to grid operators during peak hours.

The NDRC intends to launch more than 50 pilot programmes in areas with reasonably mature conditions for vehicle-grid integration, such as the Yangtze River Delta, the Pearl River Delta, Beijing, Sichuan, and Chongqing. Chinese authorities see the integration of EVs into the power system as a critical solution to prevent power networks from being overwhelmed as electricity demand surges.

Why does it matter?

Electric car battery charging could boost peak power demand in main cities by approximately 12% in a high-growth scenario for Chinese EVs, potentially overloading generating and transmission infrastructure.
To satisfy a rising demand, China is accelerating the development of smart grids, characterised by the integration of digital communication technology, analytics, and artificial intelligence (AI) technologies into the power network.

Smart grid technologies can aid in optimising energy flow, balancing supply and demand, reducing energy loss, and improving grid resilience against disruptions or interruptions.
With the growing popularity of EVs, China aims for vehicle-grid integration to regulate power demand. This includes promoting V2G charging, increasing off-peak charging, and pushing smart grid infrastructure development.