Role of V2G Technology in Strengthening India’s Power Sector
April 18, 2025

Why in News?

The Kerala State Electricity Board (KSEB), in collaboration with IIT Bombay, has launched a pilot project to evaluate the feasibility of integrating Electric Vehicles (EVs) with the State's power grid using Vehicle-to-Grid (V2G) technology.

The project aims to assess how EVs can support the grid during peak demand periods, leveraging EVs as a potential solution to balance the electricity load when solar energy is not accessible.

What’s in Today’s Article?

  • Vehicle-to-Grid (V2G) Technology
  • V2G Technology Can Support India’s Power Sector
  • Global Adoption of V2G Technology
  • Current Status of V2G in India

Vehicle-to-Grid (V2G) Technology

  • Vehicle-to-Grid (V2G) refers to technologies that allow Electric Vehicle (EV) batteries to send power back to the grid.
  • When not in use, EVs can act as decentralized battery storage systems, supporting the power grid via bi-directional chargers.
  • How V2G Works
    • V2G involves two key processes:
      • Grid-to-Vehicle (G2V): Power flows from the grid to charge the EV.
      • Vehicle-to-Grid (V2G): The EV discharges stored energy back into the grid when needed.
  • Broader Applications
    • While V2G is the most prominent, EV batteries can also support:
      • Vehicle-to-Home (V2H) for powering household devices
      • Vehicle-to-Vehicle (V2V) energy transfers between EVs

V2G Technology Can Support India’s Power Sector

  • Demand-Side Management
    • Peak Load Reduction: EVs can discharge power during high-demand periods, reducing stress on power plants and lowering energy costs.
    • Load Balancing: Charging EVs during off-peak hours helps stabilize electricity demand throughout the day.
  • Renewable Energy Integration
    • Storage for Volatile Renewables: V2G stores surplus solar and wind energy and releases it when needed, mitigating renewable intermittency.
    • Grid Balancing: Provides ancillary services like frequency regulation and voltage support for grid reliability.
  • Grid Flexibility and Resilience
    • Backup Power Supply: V2G-enabled EVs can act as emergency power sources during outages.
    • Decentralized Storage: EVs offer local energy storage, reducing dependence on centralized plants.
  • Economic Benefits
    • Cost Savings for EV Owners: Users can earn by selling excess energy back to the grid.
    • Improved Grid Efficiency: V2G boosts grid reliability and reduces operational costs for utilities.
  • Additional Advantages
    • Smart Charging and Communication: Enables efficient energy flow through intelligent systems.
    • Environmental Impact: Supports the use of clean energy, helping reduce carbon emissions.

Global Adoption of V2G Technology

  • Growth in Mature EV Markets
    • V2G technologies are rapidly advancing in countries with established EV ecosystems, such as the U.S. and Europe.
    • EVs are increasingly seen as cost-effective distributed energy storage solutions.
  • Incentivised Participation
    • United Kingdom and The Netherlands: EV owners receive compensation for supplying excess power to the grid during peak demand periods.
    • California, USA: EV users are encouraged to contribute to ancillary services, such as grid stability and frequency regulation, with attractive financial incentives.
  • Decentralised Energy Storage and Emergency Use
    • EVs serve as crucial decentralized storage units, offering emergency power during outages and supporting disaster resilience amid increasing climate-related disruptions.

Current Status of V2G in India

  • V2G technology in India is still in its infancy. The primary focus has been on expanding EV charging infrastructure rather than enabling power flow back to the grid.
  • Pilot Projects and Planning
    • Some DISCOMs have initiated pilot projects for smart charging and V2G integration.
    • The Central Electricity Authority (CEA) has formed a committee to develop guidelines for reverse charging from EVs to the grid.
  • Importance of Smart Charging
    • The CEA committee identified smart charging as essential to support EV adoption while minimizing stress on the distribution grid.
  • Structural and Market Challenges
    • India's electricity market is not yet equipped for decentralized systems like V2G. Key issues include:
      • Variability in renewable energy supply
      • Mismatches between electricity generation and demand
  • Need for Regulatory Support
    • To enable large-scale V2G adoption, India must implement regulatory reforms that support bi-directional energy flow and incentivize EV owners.

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