How can V2G technology help India’s power sector? | Explained Premium

KSEB and IIT Bombay pilot V2G tech in Kerala to integrate EVs into the power grid efficiently.

The story so far: The Kerala State Electricity Board (KSEB) and the Indian Institute of Technology Bombay (IIT Bombay) have initiated a pilot project to explore the implementation of Vehicle-to-Grid (V2G) technology across the State. This collaboration aims to assess the feasibility of integrating Electric Vehicles (EVs) into the State’s power grid.

V2G refers to technologies that enable EV batteries to send power back to the grid. When an EV is not in use, it can act as a decentralised battery energy storage device. An idle EV, when connected to a bi-directional charger, can provide support to the distribution grid. By incorporating V2G technologies, EVs offer an opportunity to facilitate the integration of Renewable Energy (RE) and support a demand response market. Technologies for integrating an EV to the grid will need to consider both the charging and discharging of EV batteries. In the first case, there is a transfer of power from the grid to the vehicle (G2V) to charge the vehicle. In this case, an EV battery functions as a load and the focus is on managing the charging load with minimal impact on the grid by potentially using strategies like Time of Use (ToU) electricity rates and smart charging technologies. ToU rates are electricity tariffs that vary depending on the time of day — typically higher during peak demand periods and lower during times of low demand or high RE generation.

In the second case, an EV functions as a distributed energy source where it can provide power based on the requirement of the grid. Overall, the ability of EV batteries to transfer power encompasses many possibilities such as V2G, Vehicle to Home (V2H), Vehicle to Vehicle (V2V) etc. Among these, V2G is the most popular use case.

V2G technologies have gained significant traction in mature EV markets such as Europe and the U.S. These regions initially launched numerous pilot projects focused on electric cars. EVs have emerged as a cost-effective form of distributed energy storage, with owners incentivised to supply power back to the grid. Globally, there are active efforts to develop standards for bidirectional charging and V2G regulations. Many regions are also piloting V2G technology using electric buses, with promising results.

In the U.K. and The Netherlands, EV owners are compensated for supplying excess energy back to the grid during peak hours. In places like California, with high RE adoption, EV users are actively encouraged to participate in the ancillary services segment of the electricity market, helping improve grid stability and reliability. Under this market mechanism, the compensation is high enough to encourage EV users to offer services during periods of variation in RE generation. EVs are also an important decentralised storage resource, serving as an emergency power resource. With increasing climate-linked disasters, V2G must be encouraged. Pilot projects in California have also planned to test whether EVs can help communities access power for emergency situations, during a crisis.

In India, V2G integration is currently in a nascent stage. The response to growing EV sales largely focuses on planning of the distribution grid with integration of EV charging infrastructure. A few DISCOMs have planned pilot projects for smart charging and V2G integration. The Central Electricity Authority (CEA) has set up a committee to frame guidelines for reverse charging, that is, from batteries to the grid. This committee highlighted smart charging as a key enabler to ensure EV growth with minimal impact on the grid. However, the electricity market structure in India is not the same as in the U.S. or Europe, and the current structure is not suited for decentralised solutions like EVs to send power back to grid.

This is due to challenges that arise from the variable nature of RE and mismatches between electricity supply and demand. To mainstream V2G, supportive regulatory changes are needed.