How can V2G technology help India’s power sector?

By | April 18, 2025

Vehicle-to-Grid Technology: Can EVs Power India’s Future Grid?

With the growing push towards clean energy and electric mobility, Vehicle-to-Grid (V2G) technology is emerging as a game-changer in the way we think about electricity and transportation. In a significant step forward, the Kerala State Electricity Board (KSEB) has partnered with IIT Bombay to explore how this futuristic concept can become a reality in India. The pilot project aims to test whether electric vehicles (EVs) can not only consume electricity but also give it back to the grid when needed.

But what exactly is V2G? How does it work? And can India really benefit from it? Let’s break it down.

What Is Vehicle-to-Grid (V2G) Technology?

In simple terms, Vehicle-to-Grid (V2G) is a technology that allows electric vehicles to do more than just run on battery power — they can also send electricity back to the grid.

Think of it like this: when your EV is parked and not in use, it’s essentially a battery sitting idle. If that vehicle is connected to a bi-directional charger, it can supply the excess stored energy back to the power grid. This back-and-forth energy flow turns EVs into mobile energy storage units — a concept with massive implications for the future of power distribution and grid stability.

How Does V2G Work?

V2G systems are based on a two-way exchange of electricity:

  1. Grid-to-Vehicle (G2V): This is the standard charging method. The EV draws electricity from the grid to charge its battery. In this mode, the vehicle is simply a load on the power system.
  2. Vehicle-to-Grid (V2G): In this case, the EV sends power back to the grid. This helps meet demand during peak hours or when renewable energy supply drops (like at night for solar power).

For this to work effectively, EVs need to be connected to special charging stations known as bi-directional chargers that allow electricity to flow both ways. The system also requires advanced communication between the vehicle, the charger, and the power grid to coordinate energy flow in real time.

Why Is V2G Important?

The relevance of V2G technology lies in its potential to solve several energy challenges:

  • Grid Stabilization: During periods of high demand, the grid often struggles to maintain balance. EVs connected via V2G can feed energy back into the system, preventing outages and voltage drops.
  • Renewable Energy Integration: Solar and wind power are intermittent sources. EVs can store excess power when it’s sunny or windy and send it back during cloudy or still periods.
  • Peak Load Management: Power demand peaks in the morning and evening. V2G helps flatten these peaks by drawing from EV batteries instead of ramping up fossil fuel power plants.
  • Decentralized Energy Storage: Rather than investing in large stationary batteries, utilities can tap into thousands of EVs for energy backup.

Smart Charging and Time-of-Use (ToU) Rates

Another piece of the V2G puzzle is smart charging — a system that intelligently decides when to charge an EV based on grid conditions and electricity prices. One common method is Time-of-Use (ToU) pricing, where electricity is cheaper during off-peak hours and more expensive during peak demand periods.

For example, if a user charges their EV overnight when demand is low and energy is cheaper, and then sells back the energy during peak hours, both the user and the grid benefit.

Smart charging systems can automatically manage this process to optimize energy flow without user intervention.

The Kerala Pilot Project: A Glimpse into India’s V2G Future

In a pioneering move, Kerala State Electricity Board (KSEB) has teamed up with IIT Bombay to launch a pilot project for V2G. The initiative will study how feasible it is to implement V2G across the state, taking into account local power demand, EV adoption, charging infrastructure, and grid readiness.

While this is still in the early stages, the move shows that India is beginning to take V2G seriously. Kerala’s strong focus on renewable energy and growing EV adoption make it an ideal testing ground.

The project will involve:

  • Setting up bi-directional charging stations
  • Monitoring EV battery usage patterns
  • Testing grid interaction and responsiveness
  • Assessing financial and technical viability

The insights gathered from this pilot can lay the foundation for similar initiatives across other Indian states in the future.

What Is the Status of V2G in India?

India’s V2G ecosystem is still in its infancy. While EV adoption is rising — especially in two-wheelers, buses, and urban fleets — the necessary infrastructure for V2G is not yet widespread.

Key challenges include:

  • Lack of bi-directional charging stations
  • Limited public awareness and education
  • EV models not yet fully compatible with V2G
  • No standard V2G policy framework

However, the picture is not entirely bleak. Several positive developments indicate India is moving in the right direction:

  • Policy Push: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme promotes EV adoption. Over time, this growing EV base can be tapped for V2G.
  • Smart Grid Mission: The government’s efforts to digitize the grid can make V2G integration smoother.
  • Startup Innovation: Indian startups are working on smart charging, energy management, and EV-grid integration.
  • Collaborations: Partnerships like the one between KSEB and IIT Bombay signal growing institutional interest.

The Road Ahead

For V2G to become mainstream in India, several things need to fall into place:

  1. Vehicle Compatibility: EV manufacturers must develop models that support bi-directional power flow.
  2. Charger Infrastructure: More charging stations must support two-way power exchange.
  3. Policy and Incentives: The government must create V2G-friendly regulations and offer incentives for participation.
  4. Grid Modernization: Utilities must invest in smart grids that can communicate with EVs and manage decentralized energy flow.
  5. Consumer Engagement: Public awareness about the financial and environmental benefits of V2G is essential.

Conclusion

Vehicle-to-Grid technology holds tremendous promise for India’s clean energy future. By treating EVs not just as vehicles but as mobile batteries, V2G turns transportation into a tool for energy security, climate resilience, and grid stability.

While the concept is new and the infrastructure is still catching up, initiatives like the Kerala-IIT Bombay pilot are paving the way. With the right mix of technology, policy, and public participation, India could soon be driving — and powering — its way into a sustainable energy future.