Vehicle-to-Grid Technology: Applications, Need & Challenges

• In a landmark move towards energy innovation, the Kerala State Electricity Board (KSEB), in collaboration with IIT Bombay, launched a pilot project for Vehicle-to-Grid (V2G) technology. As India advances towards a smart grid ecosystem, V2G offers the dual advantage of decarbonising transport and stabilising the power grid, especially during peak load periods.

About Vehicle-to-Grid (V2G) Technology

• Vehicle-to-grid (V2G) enables EVs to act as a provider of decentralised energy storage by discharging power back to the grid via bidirectional chargers, aiding renewable energy integration and demand response. Other applications include G2V (charging), V2H (home supply), and V2V (vehicle-to-vehicle transfer).

V2G Scenario in India

• V2G is in early stages in India, with several DISCOMs initiating pilot projects for smart charging & V2G.
• Central Electricity Authority (CEA) has set up a committee for reverse charging guidelines.

Global Status

• UK & Netherlands: EV owners are financially incentivised to supply excess energy back to the grid during peak demand hours.
• California (USA): EVs participate in ancillary service markets, contributing to grid stability & reliability.

Credit: Servo Tech

Applications of V2G Technology

• Efficient EV Fleet Management: V2G allows businesses to manage EV fleets more effectively by automating smart charging and discharging, lowering costs and advancing sustainability goals.
• Grid Ancillary Support: V2G-enabled EVs enhance grid stability by providing voltage regulation, reactive power support, and frequency balancing services.
• Home Energy Backup: EVs can act as emergency power sources for homes during outages or peak load times, reducing electricity bills and enhancing energy resilience.
• Real-Time Energy Trading: V2G supports flexible energy markets by enabling real-time power exchange between EVs and the grid or other vehicles.

Need for V2G Technology in India’s Power Sector

• Peak Demand Management: As electricity demand rises, especially during peak evening hours, V2G helps manage load by allowing EVs to return power to the grid.
• Integration of Renewable Energy: India’s solar and wind capacity faces intermittency issues. V2G can balance this by storing surplus RE and discharging it during shortfalls.
• Decentralised Energy Storage: EVs can act as a distributed storage network, alleviating the strain on centralised power infrastructure and improving grid resilience.
• Support for Smart Grids and Demand Response: V2G is a crucial component of innovative grid systems, facilitating real-time energy exchange and flexible demand-side management.
• Energy Security and Disaster Resilience: During power outages or natural disasters, V2G-enabled EVs can serve as emergency power sources, particularly in remote or vulnerable areas.
• Policy Push Towards Clean Energy: V2G supports India’s energy transition and net-zero emissions goals while fostering self-reliant power systems, thus contributing to a cleaner, flexible grid.

Challenges to Vehicle-to-Grid (V2G) Technology in India

• Lack of Regulatory Framework: India lacks a unified vehicle-to-grid (V2G) policy. Central Electricity Authority (CEA) has begun consultations, but formal reverse power flow guidelines are still in development.
• Poor Grid Infrastructure: Only ~6% of DISCOMs in India have deployed smart grid components, limiting readiness for bi-directional power flow needed for V2G.
• Low EV Market Share: Despite the sale of 15 lakh EVs in 2023–24, they represent less than 2% of India’s total vehicle fleet, limiting the immediate potential for V2G scalability. (NITI Aayog)
• Expensive Bi-directional Chargers: V2G-capable chargers cost 2.5 to 3 times more than regular chargers, and dependence on imports raises costs further due to limited domestic production.
• Battery Health Concerns: Frequent charging and discharging cycles may accelerate battery degradation, particularly deterring EV users without assured compensation models.
• Low Public Awareness & Incentives: As per NITI Aayog and WRI (2023), over 70% of EV owners are unaware of V2G. Currently, there are no fiscal or policy incentives to drive adoption.

Way Forward for V2G Technology in India’s Power Sector

• Develop a National V2G Policy Framework: Establish regulatory guidelines by the Central Electricity Authority (CEA) for bi-directional energy flow, clarifying roles of DISCOMs, EV owners, and aggregators.
• Strengthen Smart Grid Infrastructure: Accelerate smart grid deployment in urban and semi-urban areas for real-time data management, load balancing, and secure energy transfers.
• Incentivise Bi-directional Charging Infrastructure: Promote domestic manufacturing of V2G-compatible chargers and offer capital subsidies or tax benefits to lower deployment costs.
• Promote Dynamic Tariff Mechanisms: Implement Time-of-Day (ToD) and real-time pricing models to reward EV users for discharging during peak grid demand or RE variability periods.
• Integrate V2G in National EV and RE Missions: Align V2G goals with FAME, National Electric Mobility Mission, and Green Hydrogen Mission to ensure coordinated policy and investment support.
• Encourage Pilot Projects and R&D: Support public-private partnerships for V2G pilots that involve fleet operators, residential communities, and smart city initiatives to test use cases under Indian conditions.

V2G technology embodies the “Sankalp se Siddhi” principle by empowering citizens and technology to co-create a resilient energy future. By adopting Vehicle-to-Grid systems, India can transform EVs from mere transport assets into active players in the energy value chain, thus accelerating its clean energy transition.

Reference: The Hindu

PMF IAS Pathfinder for Mains – Question 159

Q. “Vehicle-to-Grid (V2G) technology has the potential to revolutionise India’s power and mobility ecosystem.” Critically examine the role of V2G in accelerating electrification and enabling a clean energy transition in India. (250 Words) (15 Marks)

Approach

• Introduction: Provide a brief overview of Vehicle-to-Grid (V2G) technology and how it operates.
• Body: Highlight the importance of accelerating electrification and facilitating India’s energy transition and the challenges in its adoption.
• Conclusion: Conclude with recommendations like policy support, infrastructure upgrades, and public awareness.