China's Electric Vehicle Forum Highlights New Energy Development and Smart Strategies in the Auto Industry

Hosted by the China Electric Vehicle 100 People Forum, and co-organized by Tsinghua University, China Automotive Engineering Society, China Association of Automobile Manufacturers, China Automotive Technology & Research Center, and China Automotive Engineering Research Institute, the China Electric Vehicle 100 People Forum (2023) opened in Beijing.

The forum invited representatives from relevant government departments and industry organizations in automotive, energy, transportation, urban, and communication fields, and leading enterprises, to engage in in-depth discussions on a wide range of topics, including the global automotive industry development, high-quality development path of new energy vehicles, China’s intelligent connected vehicle development strategy, development trends of core industry chains and supply chains such as power batteries, new generation automotive consumption transformation trends, automotive and energy co-development strategies, new transportation energy security system, direction of commercial vehicle transformation, innovative paths in the automotive aftermarket, and automotive digitalization and intelligent manufacturing models.

At the 2023 China Electric Vehicle 100 People Forum, Li Ming discussed the following keypoints:

  1. State Grid Corporation fully supports the development of new energy vehicles by providing guarantees for charging infrastructure, extensive layout, industry collaboration, demonstration projects, and promoting technical standard innovation.

  2. 88.7% of public charging facilities were built through social investment, with 1.19 million charging pile application approvals in 2022, enhancing the convenience of constructing charging facilities in residential parking spaces.

  3. New energy vehicles possess load regulation characteristics and dispatchable potential. Through orderly charging methods, charging pile access and distribution average load rate can be increased. New energy vehicles can participate in grid demand response and peak shaving services, reducing electricity procurement costs.

  4. China’s non-fossil fuel power generation installed capacity has reached 1.27 billion kW, accounting for 49.6%. In 2022, 160 million kW was newly added. By 2023, the national non-fossil fuel power generation capacity is expected to reach 2.57 billion kW, with a power generation share of 52.5%.

  5. New energy vehicle ownership exceeds 13 million, accounting for 4.1%. Sales volume in 2022 surpassed 6.8 million vehicles, with a market share of 25.6%. By 2023, the adjustable load potential of new energy vehicles is expected to exceed 100 million kW.

  6. Promoting the integrated development of green energy and new energy vehicles can enhance the consumption capacity of solar, wind, and other new energy sources, achieve green industry development, and improve the international competitiveness of new energy vehicles.Below is the original transcript of the speech:

Respected Minister Li Yizhong, Academician Chen Qingquan, CEO Zou Ji, esteemed guests, good morning. On behalf of comrade Xin Baoan, Chairman of the State Grid Corporation, I am attending this conference and taking this opportunity to express our heartfelt gratitude to friends from all walks of life who have long supported our company’s development.

The State Grid Corporation is the world’s largest public utility company, operating the world’s highest voltage-level, largest-scale, longest safe operation record, fastest green energy development, and the largest power grid. We serve over 1.1 billion people in 26 provinces in China, actively promoting the development of new energy vehicles and ensuring the consumption of green energy. With the responsibility of a central enterprise, we have demonstrated our commitment to powering a better China and energizing a beautiful China.

Now, I would like to share with you our company’s practice in promoting the integrated development of green energy and new energy vehicles.

I. Full support for the rapid development of new energy vehicles

The State Grid Corporation conscientiously implements the national development plan for the new energy vehicle industry, fully undertakes electricity supply guarantees, and vigorously supports the construction and investment of charging infrastructure by social operators. With a focus on security infrastructure, we actively carry out the construction and operation of charging infrastructure, providing a strong guarantee for the rapid development of new energy vehicles in China.

1. Strengthening power supply guarantees and supporting the widespread deployment of charging infrastructure

We have incorporated the electricity demand for charging infrastructure into our distribution grid planning, proactively extending the investment interface of power supply enterprises, and fully supporting and serving the construction of charging infrastructure by various social entities. By improving processes, shortening time limits, and increasing efficiency in power supply, we have effectively ensured the efficient and convenient investment of charging piles, ensuring that charging facilities can be built, connected, and used effectively. Currently, 88.7% of the public charging facilities operated by our company are built with social investment, presenting a thriving and prosperous industry landscape.

2. Innovating online integration services to enhance the user experience of buying cars and installing charging piles

We have our own online State Grid entrance for electricity services. We link our platform with those of automakers and charging operators to launch integrated online services for private charging piles, car purchase, electricity registration, charging pile installation, charging services, and value-added services. Users can apply for electricity while purchasing a car at a 4S store, significantly reducing the time required for account registration. At present, we have cooperated with over 4,700 4S stores and achieved data connectivity with eight automakers. In 2022, we successfully processed 1.19 million charging pile installation applications, promoting the requirement or reservation of installation conditions for 100% of fixed parking spaces in residential areas to be equipped with charging facilities, thus greatly improving the convenience of buying and installing electric vehicles.3. Building High-Quality Demonstration Projects to Drive Charging Industry Upgrades

We focus on the new energy vehicle industry ecosystem, innovating charging technology and service models. High-quality demonstration projects, such as the Tianjin Jinmen Lake integrated storage and charging station, have been built. By utilizing technologies like multi-energy collaboration, source-grid-load-storage, and micro energy grids, we provide a replicable and scalable construction model for green charging stations, strongly supporting the clean and low-carbon development of the new energy vehicle charging and battery-swapping industry.

4. Strengthen Innovation in Technical Standards to Promote Industry Standardization

We have taken on the work of five IEC working groups in the field of charging facilities. We have led the release of three IEC standards, including “Electric Vehicle Charging Roaming Service Information Interaction” and published the IEC “Future Sustainable Transportation Strategy Technology Report”. We have conducted research on the bidirectional interaction between electric vehicles and power grids, completing the standard framework for vehicle-grid interaction.

II. Practical Examples of Interaction between New Energy Vehicles and Power Grids

New energy vehicle charging time is flexible, charging behavior is guideable and predictable, with strong load-adjusting characteristics and dispatchable potential. By implementing orderly potential and load aggregation, new energy vehicles can effectively participate in peak shaving and valley filling, ensuring power balance and improving the overall operation efficiency of power systems.

1. Promoting Orderly Charging of New Energy Vehicles in Residential Areas

With the growing advantages of new energy vehicles, the penetration rate in private vehicles continually increases. The increase in disorderly charging equipment affects grid safety and charging pile access quantity in residential areas due to peak load. Adopting orderly power consumption methods can effectively increase the access quantity of charging piles and improve the average load rate of power distribution. A pilot project has been launched in Beijing where charging peak hours can be moved from 8 pm to between 11 pm and early the next morning. We have also promoted policies in Shanghai to ensure that newly-built charging piles in residential areas are orderly.

2. Exploring the Participation of New Energy Vehicles in Grid Load Adjustment

Leveraging the smart vehicle connectivity platform, we have broadly aggregated various types of public, private, and dedicated charging resources. Organizing new energy vehicles to participate in the grid’s demand response and peak-shaving auxiliary services. In 2022, we coordinated with 24 charging operators such as Teld and StarCharge, aggregating 5,100 charging and battery-swapping stations, participating in peak summer demand response 49 times, with a maximum peak shaving of 22,000 kW and an affected power volume of 640,000 kW. During winter, new energy vehicles participate in grid peak-shaving auxiliary services primarily for valley filling, as heating supply and power generation from heating units are required, and there is no load for renewable energy consumption, causing issues in thermal power generation.3. Encouraging charging and battery-swapping operators to participate in market transactions to reduce electricity procurement costs

In 2022, more than 2,300 charging and battery-swapping stations were organized in Shanxi and Shandong to participate in the electricity spot market as virtual power plants, saving over 2.7 million for charging service operators. Now, 11 provincial companies have carried out new energy vehicle participation in medium and long-term electricity transactions, with a trading volume exceeding 14 billion kWh.

III. Promising prospects for the integrated development of green energy and new energy vehicles

Developing green energy is the only way to solve global resource and environmental constraints and is essential for promoting harmony between humans and nature. Energy is the foundation of human societal development, and China is firmly committed to pursuing green, low-carbon, and sustainable development, insisting on the exploitation and use of clean energy. Green has become the most dazzling foundation for high-quality economic development. After more than a decade of vigorous development, non-fossil energy power generation capacity has reached 1.27 billion kW, accounting for 49.6% of the current total capacity. In 2022, 160 million kW of added non-fossil energy capacity accounted for 80% of the country’s newly installed capacity, dominating the additional capacity. Under the dual-carbon goals, non-fossil energy power generation capacity is expected to reach 2.57 billion kW by 2023, accounting for 52.5% of total electricity generation.

New energy vehicles are essential for reducing fossil fuel consumption in the transportation sector and promoting green development. Thanks to national policy incentives and collective efforts, new energy vehicles have achieved tremendous success, with over 13 million units in operation or 4.1% of China’s total vehicle fleet. In 2022, sales exceeded 6.8 million units, with a market share of 25.6%, ranking first globally for eight consecutive years. We predict that by 2023, the figure will exceed 100 million, with the adjustable load potential of new energy vehicles surpassing 100 million kW.

Promoting the integrated development of green energy and new energy vehicles is not only a practical requirement for achieving dual-carbon goals but also an inherent demand for enhancing the international competitiveness of China’s new energy vehicle industry. Currently, the EU has set a clear timeline for carbon tariffs, while China’s carbon market continues to expand. Green development has become a global consensus and development goal. By promoting the integrated development of green energy and new energy vehicles, on one hand, the load regulation potential of new energy vehicles can be fully utilized, increasing the consumption capacity of photovoltaic, wind power, and other new energy sources, and promoting green energy development. On the other hand, through the use of green energy across the new energy vehicle industry chain, green development and increased international competitiveness can be achieved.In our country, the State Grid advocates for a substantial proportion of renewable energy in the current electricity consumption. However, we also hope to increase this share through market-oriented transactions. By continuously increasing the consumption of renewable green energy through power trading, we vigorously promote the integrated development of green energy and new energy vehicles. Firstly, we encourage charging operators to actively participate in green electricity trading, increasing the small proportion of their charging capacity within green energy, and creating green charging stations. Secondly, we innovate and encourage new energy vehicle production companies to actively pursue green manufacturing. The day before yesterday, we visited Mercedes-Benz and Volkswagen, brands that are constantly advocating increasing the share of new energy use, with a goal of 100% adoption. Thirdly, we actively implement time-of-use electricity pricing policies for private charging piles, scientifically set peak and off-peak periods, optimize peak and off-peak price ratios, and guide residents to charge more new energy vehicles.

Lastly, the State Grid highly values green development and is willing to strengthen communication and cooperate with all sectors within the country to contribute to the clean and low-carbon transformation in the field of new energy and the zero-emission goal in the transportation sector.

Finally, we wish the conference great success. Thank you!

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.