On September 11, the charging pile concept collectively strengthened. Jinguan shares rose and stopped 20CM, Aotexun and Huayang New Materials rose and stopped, and Incore, Colin Electric, and Wangbian Electric had higher gains.

According to the news, the four departments recently issued the “Notice on Promoting Pilot Work on Large-scale Interactive Application of Vehicle Networks” to comprehensively promote orderly charging of new energy vehicles and expand the scale of bidirectional charging and discharging (V2G) projects.

It is worth noting that V2G technology, as an innovative method for connecting electric vehicles to the power grid, enables bidirectional energy exchange, improves grid efficiency and reliability, and brings economic benefits to car owners. Globally, V2G technology has received widespread attention and application, and many countries and regions are actively exploring its commercial application.

Promote the construction, replacement or transformation of intelligent and orderly charging stations

According to the website of the National Development and Reform Commission, the “Notice on Promoting Pilot Work for Interactive Large-scale Application of Vehicle Networks” proposes to gradually improve transaction rules for vehicle network interactive resource aggregation to participate in the electricity market, promote large-scale and normalized participation in electricity market transactions, and support the exploration of business models for load aggregators to participate in the electricity market.

The notice was jointly issued by the General Office of the National Development** Committee, the General Department of the National Energy Administration, the General Office of the Ministry of Industry and Information Technology, and the General Office of the General Administration of Market Supervision.

The notice highlights five key tasks:

(1) Give full play to the motivating role of the electricity market. Gradually improve the trading rules for vehicle network interactive resource aggregation to participate in the electricity market, promote large-scale and normalized participation in electricity market transactions, support the exploration of business models for load aggregators to participate in the electricity market, promote the cultivation of various new business players in the electricity market, and gradually form a load aggregation business model with a clear model, stable development, and conditions for promotion. V2G projects are encouraged to gather and participate in markets such as electricity spot, green power trading, and energy storage capacity leasing to verify the equivalent energy storage potential of V2G resources.

(2) Improve price and demand response mechanisms. Establish and improve a time-sharing electricity price mechanism for residents' charging peaks and valleys, encourage the establishment of differentiated price systems around residents' charging load and residents' living load, optimize peak and valley time period settings, reasonably expand peak and valley price differences; explore price mechanisms for electric grid discharges from new energy vehicles and charging and switching stations. Innovate demand response mechanisms, enrich the variety of demand responses, and increase the frequency and scale of user participation.

(3) Strengthen the promotion of intelligent and orderly charging applications. Formulate technical requirements related to improving intelligent charging and switching facilities, and promote the construction, replacement or transformation of intelligent and orderly charging piles. Promote the construction of intelligent and orderly charging pilot communities, establish an intelligent and orderly charging management system for residential communities, and effectively improve personal smart pile access capabilities on the basis of ensuring the safe operation of power grids. Improve the interactive capabilities of charging and switching stations, study and optimize reporting capacity approval methods and grid-connected operation rules, and carry out pilot projects to optimize and increase the access capacity of intelligent charging and switching stations.

(4) Promote collaborative innovation in V2G technology and models. Explore V2G technology and models that are efficiently integrated with scenarios such as parks, buildings, and residences to meet V2G application requirements in the public sector and private vehicles. Support relevant enterprises to jointly carry out V2G project declarations, and encourage car companies and battery companies to improve battery quality assurance systems and improve battery technology. Explore and rely on the NEV National Monitoring and Power Battery Recycling and Traceability Comprehensive Management Platform to carry out battery status assessments for V2G projects.

(5) Strengthen job security and effective guidance. Strengthen the implementation and application of standards to support the effective promotion of large-scale interactive application of vehicle networks. Actively play the role of charging facility monitoring service platform, and establish and improve vehicle network interactive data access and evaluation mechanisms. Strengthen the protection of users' rights and interests, strengthen the promotion of science, and enhance users' willingness to participate. Strengthen the security of power grid enterprises, and do a good job in services such as resource access, grid access testing, grid connection measurement, scheduling and operation, and clearing and settlement.

Industry insiders pointed out that new energy vehicles are connected to the power supply network through charging and switching facilities to establish a two-way interaction system for energy flow, information flow, and value flow between the new energy vehicle and the power supply network, which can effectively utilize the flexible adjustment ability of power batteries as controlled loads or mobile energy storage, and provide important support for the efficient and economical operation of new power systems.

What is V2G?

V2G, the full name of Vehicle-to-Grid, is vehicle network interaction. Simply put, electric vehicles can be used as mobile energy storage devices to charge during periods of low electricity consumption and reverse discharge to the power grid during peak electricity consumption periods.

According to China's V2G development stage roadmap issued by the National Information Center, from 2020 to 2025, China will launch a demonstration operation of at least 500 electric vehicles interacting with the power grid. After 2026, V2G will gradually be commercialized.

At the same time, many domestic policies are also supporting the development of V2G technology domestically. Strive to initially establish an interactive technical standard system for vehicle networks by 2025, fully implement the charging peak and valley electricity price mechanism, and strive to concentrate more than 60% of the total charging capacity of cities participating in the pilot demonstration during the year 2025 during the low season and 80% or more of the charging power of private charging piles during the low period.

As a two-way energy interaction method between electric vehicles and power grids, charging pile V2G technology has important advantages and broad application prospects.

Although domestic V2G development still faces many problems at this stage, with the spread of electric vehicles, the improvement of automotive technology, and future promotion, V2G technology will play an increasingly important role in promoting transformation and sustainable development in the energy sector.

According to estimates, the V2G market space in 2025 will be about 33.3 billion yuan, and will reach 105.2 billion yuan by 2030. At that time, full-chain enterprises related to V2G technology will also usher in new development opportunities.

The industry will experience a blowout

Recently, the China Charging Alliance released a report on the operation of the national electric vehicle charging and switching infrastructure in August 2024. According to the data, the number of public charging stations nationwide increased by 0.054 million in August compared to July, a year-on-year increase of 43.6%.

From September 2023 to August 2024, the average number of new public charging stations per month was about 0.083 million.

The China Charging Alliance stated that it will continue to work to promote the construction and optimization of charging infrastructure, improve the coverage rate and charging efficiency of charging facilities, and provide strong support for the popularization and development of electric vehicles. At the same time, the alliance will also strengthen cooperation with member organizations to jointly promote the healthy development of the charging infrastructure industry.

In the future, as the NEV market continues to expand, demand for charging piles is expected to grow exponentially. The China Automobile Association predicts that sales of new energy vehicles will reach 11.5 million units by 2024, and this increase will bring unprecedented development opportunities to the charging pile industry.

Concept stocks at a glance:

AoteXun: The company built an engineering laboratory for two-way interconnection between electric vehicle charging (discharging) motors and power grids, and initiated research and development of electric vehicle V2G charging/discharging motors.

Tonghe Technology: It is in a leading position in China in the field of charging modules, covers a wide range of V2G power levels, and is also at the forefront of overseas market layout.

Hanchuan Intelligence: Hanchuan has developed an optical storage charging station integrating V2G and smart microgrids, demonstrating its innovative strength in the field of charging new energy vehicles.

Incore: The company has high technical strength and market share in the field of charging piles, focusing on the development and sales of smart charging piles.

Shenghong Co., Ltd.: The company has a number of core technologies in the field of intelligent charging, providing one-stop service for charging new energy vehicles.

Kelu Electronics: The company provides intelligent inspection services for electric vehicle charging stations; the main business of the participating company Shenzhen Vehicle Electric Network Company is charging pile operation and charging piles.

Guodian Nanrui: As a pioneer in domestic vehicle networking and charging and switching services, Guodian Nanrui developed V2G charging piles, took the lead in preparing international standards for Chaoji charging, and led the development of the industry.

Baoxin Technology: Continuously promoting the iteration of super fast charging and V2G technology, and is committed to building a linked layout of light, storage, and charging/exchange. Its technology accumulation and market layout in the V2G field are worth looking forward to.

Jinguan Co., Ltd.: As a leading supplier of charging equipment and smart meters, Jinguan's products already have V2G functionality, and it is expected to further consolidate and expand its market position in the wave of state-owned enterprises**.

Huicheng Technology: The charging pile business uses Chongqing Huicheng Future, a wholly-owned subsidiary, as the carrier. It is committed to providing users with integrated solutions for new energy electric vehicle charging stations, including charging systems, power distribution systems, measurement and control systems, and security systems.