Energy Insider: China Deepens ‘Vehicle-to-Grid’ Scheme, CATL Plans Battery-Swapping Buildout

China is making significant strides in its energy and climate policies, focusing on several key areas to enhance its renewable energy infrastructure and improve energy efficiency. The government's initiatives include promoting EV-grid interaction, advancing battery swapping technology, supporting the heat pump industry, and expanding ultra-high-voltage (UHV) transmission lines. [para. 1]

One of the major initiatives is the expansion of the "vehicle-to-grid" system across nine pilot cities, including Shanghai, Guangzhou, Shenzhen, and Chongqing. This system encourages electric vehicle (EV) owners to charge their vehicles during off-peak hours and return unused energy to the grid during peak times, allowing them to make monetary gains by buying low and selling high. There are plans to run 30 projects involving this technology, with different applications like integrating it with battery-swapping stations in Chongqing and charging pillars for electric trucks in Shanghai. This system aims to alleviate the increased electricity demand created by the rising number of EVs, offering EVs as "batteries on wheels" that support the power grid during periods of high demand, thereby reducing grid investments and resource use. [para. 2][para. 4]

In the realm of battery technology, Contemporary Amperex Technology Co. Ltd. (CATL) has partnered with Sinopec, a state-owned energy giant, to establish a network of battery-swapping stations. Their joint effort aims to construct 10,000 stations, with at least 500 operational by the year's end. This collaboration complements Sinopec's existing infrastructure with CATL's innovative battery-swapping systems, capitalizing on China's push for battery-swapping technology, which had already led to over 4,443 stations by the end of last year. Deputy Minister of Industry and Technology Zhang Yunming highlights this focus as part of the country's industrial strategy. [para. 5][para. 7]

Additionally, China's central government is backing the development and production of heat pumps, aiming to lead globally in this essential sector for energy transition. By 2030, the energy efficiency of these heat pumps is expected to improve by over 20%, with breakthroughs anticipated in core technologies like high-power heat pumps and new refrigerants. The directive also emphasizes their integration across various industries, including real estate and agriculture. Heat pumps play a vital role in China's renewable energy strategy by harnessing geothermal energy, as seen in companies like Sinopec expanding their use to provide heating solutions. [para. 9]

Further strengthening its power infrastructure, China plans to construct up to 28 new UHV transmission lines. These lines are critical for transporting electricity from resource-rich areas in the northwest, northeast, and southwest to population centers in the south and east. The UHV technology is pivotal in enabling the transmission of wind and solar energy across vast distances, aligning with China’s renewable energy goals. Seven of these lines are set to be completed and operational within the year. [para. 12][para. 14]

These combined efforts signify China's commitment to modernizing its energy infrastructure, improving efficiency, and reducing reliance on traditional power sources. The developments across EV-grid systems, battery-swapping networks, heat pump technology, and UHV transmission lines reflect an integrated approach to addressing the challenges posed by increasing energy demands and resource availability in remote regions. These measures are poised to play a significant role in the country's broader energy transition and climate policy objectives. [para. 15]