OMI_White_Paper_Vehicle_to_Grid_(V2G)_in_India.pdf

White Paper
June 2021
Electric Mobility | June 2021 | EMWP 21/01

Abstract
India has committed itself to increasing the number of Electric Vehicles (EVs) in its motor fleet with a slew of supply
and demand side measures to boost their uptake. This White Paper considers the role Vehicle-to-Grid (V2G)
technology can play in driving EV adoption in the country. V2G has emerged as a novel value stream for EV owners
and represents a potential global opportunity worth USD 17.43 billion. With India heightening its efforts towards a
shared, electric and connected future, this paper locates V2G as a potentially disruptive instrument in achieving
India’s adoption targets. The paper outlines a range of principles to guide future policy action in this domain and
show the way for further research, collaboration and innovation.
Introduction
India has repeatedly demonstrated its commitment to play a seminal role in the ongoing paradigm shift in the mobility
domain and lead the world towards a shared, connected and electric mobility future. The Government of India has
aggressively pushed for the uptake and mainstreaming of electric vehicles (EVs) through a plethora of policy
instruments, the most recent of which include the second phase of the Faster Adoption and Manufacturing of Electric
Vehicles in India (FAME-II) scheme, production-linked incentive (PLI) scheme in advance chemistry cell (ACC) battery
manufacturing, National Mission on Transformative Mobility and Battery Storage, and the Phased Manufacturing
Programme (PMP) for setting up export-competitive integrated batteries and cell-manufacturing giga plants. These
measures have shown encouraging results with a 20% increase in EV sales in 2019-20 over the previous year (PTI,
2020a). Though the COVID-19 pandemic has dampened sales, forecasts point towards a trajectory buttressed by
buoyant growth. According to analysis by the India Energy Storage Alliance, the EV market in India is projected to grow
at a CAGR of 44% from 2020 to 2027. Similarly, the annual battery demand is expected to grow by 32% over the same
period (PTI, 2020b).
There are, however, certain lingering barriers that have prevented a warmer embrace of EVs in India. Anxieties
surrounding performance and range, the total cost of ownership, inadequacy of charging infrastructure, and lack of
consumer awareness about EV technology remain critically influential in driving EV adoption (Tarei et al., 2021). Barring
purchase incentives through FAME subsidy, exemption of road tax and registration fee etc. to reduce the relative cost
differential for EVs against internal combustion engine (ICE) vehicles, prevailing EV policies in the country have
primarily focused on supply side incentives, with demand side incentives not being proportionate to their
corresponding potential (KPMG, 2020).
This is especially true for electric four wheelers (e-4Ws). Electric two and three wheelers (e-2Ws and e-3Ws) may already
be cost competitive with or without incentives for both individual use and commercial purposes. While incentives in
some States, most notably in Delhi, have possibly helped tilt the total cost of ownership (TCO) scale favourably towards
commercially registered e-4Ws, non-commercial e-4Ws continue to be less attractive from a cost perspective than their
ICE counterparts (Patil & Ghate, 2020). TCO parity in itself may not guarantee mass adoption of EVs, but given the cost
consciousness of most Indian buyers, the promise of even moderate savings will go a long way in enhancing the
demand for EVs.
Focus of the study
There is a need, therefore, to diversify demand side incentives to boost uptake of EVs by identifying innovative
incentive structures and instruments and provisioning for their implementation. This white paper looks at one such
OMIWhite Paper |Vehicle-to-grid (V2G) in India: Potential and Scope for driving EV adoption Page 2/ 26

potential instrument in the form of Vehicle-to-grid (V2G) technology and considers the role it can play in accelerating
EV adoption in the country. It identifies the potential monetary benefits that could accrue to EV owners through
frequency response mechanisms, payments for selling excess energy back to the grid, and lowering electricity
consumption charges by potentially leveraging differential energy tariffs etc. Another objective of this study is to lay
the ground and argue for long-term investments and regulatory foresight to establish and entrench uniformly
accessible bidirectional charging infrastructure at a macro, country-wide level. Additionally, it seeks to examine the
interplay of EVs with the grid, charge point operators, DISCOMs etc. and proposes all-encompassing principles for
concrete policy action on all related fronts.
What isV2G and how does it work?
V2G is a technology that allows for bidirectional energy flow, enabling energy stored in EV batteries to be pushed back
to the electricity grid (Kempton et al., 2001). The essential idea is to modulate the charging and discharging of EV
batteries in accordance with the users’ needs and the demands of the grid.
When responding to the requirements of the grid, EVs could charge to their maximum level or change their rate of
charging when the supply is high and subsequently, EV batteries could inject electricity back to the grid during peaks in
consumption or in response to grid demands thereby serving as temporary energy storage units. V2G also offers scope
for incorporating a greater share of intermittent renewable energy (RE) in the grid by allowing EVs to act as
decentralised storage units during periods which are conducive for increased RE production. Figure 1 explains the
operational process ofV2G.
This technology has several different use cases depending on the electrical load that is furnished; the energy can flow
from the vehicle battery to power the home- commonly called vehicle-to-home or V2H- or alternatively it could even be
used to supply energy to a residential or office building, aptly called vehicle-to-building or V2B. Oftentimes, the term
vehicle-to-everything (V2X) is used to denote the set of all possible use cases.
Figure 1 :V2G block diagram
Source: (Adnan Khan et al., 2019)

For charging an EV, alternating current (AC) from the grid is converted to direct current (DC), the kind that can be used
by the vehicle. For orchestrating the reverse flow, the DC electricity used in the vehicle has to be converted back to AC.
This can happen on-board the vehicle or off-board at the level of the charge point/ station depending on the kind of
charger used (The Wallbox team, n.d.). The former leverages AC with the V2G charger placed in the EV itself. The
vehicle can then be connected to the grid using a cable. Off-board V2G setups utilise DC current, and the hardware
allowing for bidirectional flow is not in the vehicle but at the charge point/ station (On-board V2G versus Off-board V2G
(AC versus DC), n.d.).The difference has been depicted in Figure 2.
Figure 2: AC versus DCV2G setups
Source:Wallbox.com
Both mechanisms have their pros and cons.
Table 1: Pros and Cons of on-board and off-board setup
On-boardV2G (AC)
Pros ● Uses a simple adaptation of existing terminals. Less expensive for EV owners
compared toV2G DC charger.
● Authorities do not have to invest in expensive hardware at the charge point/
station.
Cons ● Does not work with any standard AC charger; needs a specialised charger.
● Costs for the internal electronics assembly are expensive on account of strict
automotive requirements and limited space.
● Noise can be discomforting.
● Charging efficiency can typically be 10% less than an off-board charger for a
single cycle.
Off-boardV2G (DC)
Pros ● Faster and more efficient charging
● Minimal intervention required in the car
● Lower noise levels
● Greater hardware maturity compared to bidirectional AC chargers.
Cons ● The DC cable and plug are highly expensive.
Source: (On-BoardV2G versus Off-BoardV2G (AC versus DC), n.d.)
There has been significant interest in devising AC solutions, with Renault taking the lead and testing the first large scale
AC charging V2G pilot with 15 Zoe EVs across several European countries beginning with the Netherlands and Portugal
(Kane, 2019b). A vast majority of V2G operations, however, are off-board DC setups using the CHAdeMO protocol. The

other common rapid charging DC connecting standard- CCS- currently does not offer V2G capabilities, though it plans
to by 2025 (Kane, 2019a). The combined charging station and EV constitute a distributed energy resource (DER). The
different compositions making up the DER have different communication requirements (Das & Deb, 2020).
Moreover, there is a need for a control system to manage the discharging process to make sure that the exported
energy is used safely and effectively. These control systems also have a standard communication protocol to undertake
back-end communications between the charging stations and charging station management systems.The most
common standard protocol used in such systems is the Open Charge Point Protocol 2.0 (OCPP 2.0), which allows for the
mix-and-match of different software and hardware (Das & Deb, 2020).
Potential and Scope forV2G in India
Currently, V2G functions predominantly under tight experimental conditions. Having said that, there are substantial
gains to be achieved provided necessary and timely investments are made. Analysis by Precedence Research (2020)
shows that the global V2G market will garner revenue worth USD 17.43 billion and grow at a CAGR of 48% during
2020-27. This is a growth opportunity India must not miss. As a long gestation infrastructural initiative, there is an
urgent need to discuss issues regarding V2G and the advantages it offers since envisioning, designing and
implementing the technology will take time, investment, and consistent political commitment.
Imperatives for India
V2G presents a slew of opportunities from driving EV adoption by decreasing the TCO for EV owners to integrating
renewable energy, balancing the grid as well as providing emergency power backup services . The imperatives are,
therefore, diverse and varied. A careful examination of each is warranted.
1. Promote uptake of EVs by loweringTCO
India has experimented with a range of measures to make EVs attractive to its potential customers. Demand side
measures under FAME- II, for instance, provide an incentive in the form of an upfront reduced purchase price. The
incentive, however, is not applicable on Electric 4W bought for private use (Baggonkar, 2019).
As mentioned earlier, even minor alterations to the TCO can have ripple effects in the EV market. Initial studies from
mature markets show that EV owners could potentially make USD 300-500 per year through V2G (Malmgren, 2016).
This subsection looks at three prominent revenue generating value streams associated with V2G that can be leveraged
to reduceTCO and make EV purchases more economically attractive in India.
(a) Frequency response and reserve
The supply and demand of electricity needs to be in balance for the grid to function optimally. Aggregated into
portfolios, EVs can help fill a shortfall by discharging and exporting their power to the grid. Similarly, if there is an
excess of power in the system, the EVs can start charging to absorb some of that power. This can occur over different
timescales. ‘Frequency response’ mitigates deviations in system frequency1
within 1-30 secs, subject to market
requirements. ‘Reserve’ requires power to be exported within minutes to hours by increasing power generation or
reducing demand (National Grid Electricity System Operator (ESO), 2019). Frequency response can be both static as
well as dynamic. Static frequency response is a predefined fixed response service that is activated when the frequency
1
The power grid is tuned to operate at a specific frequency. Britain and India maintain it at 50Hz. The United States has it at 60Hz
(Bhalerao, 2018).

drops below a specific threshold. Dynamic frequency response, on the other hand, seeks to respond to shorter duration,
second by second deviations (Open Energi, 2015). The latter has been shown to be both more suitable to V2G and more
profitable than the former (Payne, 2019). Frequency regulation can, therefore, be a lucrative endeavour for V2G
enabled EVs.
Massive scope has been indicated in the Nordic market, with the Parker project in Denmark clocking in average annual
revenue per vehicle at 1,860 Euros (Cenex, 2020). Table 2 presents examples of revenue estimates associated with
frequency regulation from studies that have been undertaken over the years. These figures are indicative and
inferences, if any, should be drawn only after a careful and cautious consideration.
Table 2 : Revenue estimates for potential earnings from frequency regulation services
Study, Location [original
currency, year]
Application Net Revenue
Estimate (2016
USD/ vehicle-year)
Major Assumptions andVariables
Kempton and Tomić
(2005), United States
[USD, 2003]
Calculations based
on a single Toyota
RAV4 EV
USD 2,250 (10-kW
charge point) to
USD 3,320 (15-kW
charge point)
Vehicle is plugged in and available 18
hours/day. Study assumes USD 650 (2016
USD 850) for residential wiring upgrades
needed for 10-kW charge point, USD 1,500
(2016 USD 1,950) for 15-kW charge point.
Agarwal et al. (2014),
Singapore [SGD, 2012]
Pool of 10,000
private light duty
vehicles, 10-year
vehicle lifecycle
analysis
USD 1,508 Vehicles plugged in and available 22
hours/day. Market price of SGD 91.53 (2016
USD 76.89) per MWh for regulation
services.
Mullan et al. (2012),
Australia [AUD, 2009]
Pool of 60,000
private light duty
vehicles
Revenue of USD143
(deemed not
profitable if costs
are subtracted)
Based on data and costs from the South
West Interconnected System (SWIS) in
Western Australia, assumes current budget
of ~AUD 9.8 million (~2016 USD 8.7
million) for regulation service.
Ercan et al. (2016),
United States [USD,
2014]
Fleet transit or
school buses
USD17,384 (school
bus), USD6,170
(transit bus)
Life-cycle cost comparison with diesel
versions in the California Independent
System Operator region. Values shown are
per-year revenue estimates over an
assumed 12-year life.
Source: Data sourced from Steward (2017) writing for the National Renewable Energy Laboratory (NREL). Steward has converted
currencies to units of USD 2016 to provide consistency between studies.
Simulations for a local frequency response system in the case of Britain have shown financial promise (MENG et al.,
2015). However, a few things must be kept in mind. All the mentioned projections for financial gains are contingent on a
number of assumptions: the availability of sufficient EVs to be readily plugged into the grid; the willingness of EV
owners to schedule their trips keeping the need of the utilities in mind and operate their vehicles at a State of Charge
(SoC) that may be at times be less than optimal; and the presence of communication mechanisms for efficient two-way
linkages between the EV and the charging station(s) and as a corollary to that- between the charging station(s) and the
grid.

Mature pilots position frequency response at a risk of falling prices due to a possible saturation of the market as well as
competition from other fast response assets such as fixed battery systems (Cenex, 2020). Having said that, frequency
response remains one of the main revenue generating opportunities associated withV2G.
(b) Arbitrage
Provided there are variable tariffs in place- either as Time-of-Day (ToD) or some other form of Time-of-Use (ToU) tariff
structure or alternatively in the form of real-time electricity pricing- individual EV owners and fleet aggregators can take
advantage of energy price differentials. They may buy electricity when the electricity prices are low and store that
energy in the EV battery. Subsequently, they may sell this electricity on the power market when prices become high
thereby leveraging the tariff differential to earn money (Das & Deb, 2020). Since variable tariffs are a prerequisite for
revenue generation through arbitrage, the energy supplier becomes a key stakeholder in this process.
While variable tariffs are becoming increasingly common, grid services require an aggregator to “combine assets in
order to bid into markets, adding complexity and a third party with which to share revenue” (Cenex, 2020). The revenue
or saving realised is further dependent on the magnitude of the charging and discharging efficiency and conversion
losses as well as the possible costs incurred with respect to battery degradation or replacement on account of repeated
cycling. There are, however, conflicting views on the impact of repeated cycling on the health of the battery. These
concerns have been discussed in brief in a later section. Hopefully, a clearer picture should emerge with the passage of
time and the implementation of further pilot projects.
In the meantime, arbitrage should continue to be an attractive revenue generation option for owners of V2G enabled
EVs. A summary of some selective studies detailing the potential monetary gains through arbitrage can be found in
Table 3 below. While the findings have been presented together for the sake of brevity and readability in order to point
towards the monetary potential of arbitrage, it must be noted that the findings may not be directly comparable owing
to the differences in study design, considered tariff rates and structures, durations ofV2G charging etc.
Table 3 : Estimates for earnings through arbitrage
Study,
Location
[year of study,
type of study]
Driving pattern
and V2G
availability
EV specific
characteristics
Battery
degradation
Pricing scheme Profit
Almehizia and
Snodgrass
(2018), USA
[2011,
simulation]
V2G
availability:
8AM to 5 PM.
Driving
distance per
day: 32 miles
Tesla Model 70D
70kWh battery.
Round Trip
Efficiency (RTE)2
:
80%
10.42
cents/kWh
Fixed night
charging cost 5.95
cents/kWh.
Dynamic pricing
during day from
ERCOT RTM3
USD 338.56 per EV
per year
Peterson et
al.(2010), USA
[2008,
V2G
availability:
5PM to 7AM.
16kWh. Lithium Iron
Phosphate (LPF)
battery. RTE: 85%
4.2 cents/kWh Considers dynamic
pricing from PJM,
NYISO, and
Without battery
degradation: USD
140 - USD250 per
3
Electric Reliability Council ofTexas Real-Time Market
2
Round-trip efficiency is the fraction of electricity put into storage that can be later retrieved.The higher the round-trip efficiency,
the less energy is lost in the storage process.

simulation] ISO-NE for 20084
EV per year
With battery
degradation:
USD10-USD120
per EV per year
Kiaee et al.
(2015), UK
[2013,
simulation]
V2G
availability: 9
Hours. Driving
duration per
day:10 - 90
minutes
60 kWh. RTE: 100% No Electricity price
signal on 12 Nov
2013 is considered
for all simulation
days.
13.6% (GBP
1799.77/5000EVs/5
days) saving in
charging cost with
V2G when
compared to
withoutV2G case.
Uddin et al.
(2017), UK
[2016,
experimental]
V2G
availability: 9
Hours
30 kWh. Nickel
Cobalt Aluminium
(NCA) battery
Based on
actual
degradation
from the
experiment.
UK energy pricing USD 555 per EV
per year saving
from improvement
in battery life.
Malya (2020),
Germany
[2019,
simulation]
V2G
availability: 9
Hours. Driving
distance: 32.63
km
24 kWh Lithium
Manganese Oxide
(LMO) battery.
RTE:85%
Xu model5
German day ahead
pricing signal for
2019
Without battery
degradation:
43.158 Euros
/Year/EV. With
battery
degradation:
123.28 Euros
/Year/EV6
Source: Data sourced from Malya (2020)
(c)Time shifting
While both frequency response and arbitrage often require substantive regulatory and operational or logistical changes
to implement, time shifting is a much more straightforward revenue stream to put into action. Given differential tariffs
are in place, savings from time shifting accrue when EV owners shift the time at which they consume electricity thereby
reducing charges and/or increasing self consumption (Everoze & EVConsult, 2018). EV owners could, for instance,
charge the EV at low prices or during periods of high onsite solar generation and then discharge the EV, into their
homes or at their business location, when the prices are high. The overall cost of energy consumption can go down
substantially depending on individual consumption patterns and the price variability between tariffs.
The relationship between intermittent renewable energy generation and V2G has been probed in greater detail in the
next subsection.
6
The anomaly is due to the simulation algorithm adopted keeping the LMO battery in mind.The battery is highly sensitive to high
temperature. PerformingV2G helps maintain a low SOC which in turn causes less battery degradation than the case in whichV2G is
not undertaken.
5
XU model describes a technique for modelling battery degradation for LMO batteries.
4
Pennsylvania-New Jersey-Maryland Interconnection; NewYork Independent System Operator; Independent System Operator
New England

2. Grid decarbonisation: Effective energy storage option for intermittent renewable energy (RE)
India is targeting a share of 40 per cent for its renewables in its power system by 2030, with a total installed capacity of
450 GW (Joshi & Jaiswal, 2019). With growing RE penetration, DISCOMs are facing a host of challenges such as “the
high balancing costs of intermittent RE and an increased need for greater system flexibility” (CEEW Centre for Energy
Finance, 2021). To address these challenges, there has been a recent shift towards innovative RE procurement models
in India such as hybrid and ‘assured peak power supply’ models as well as the deployment of grid-scale battery storage
in many parts of the world (CEEW Centre for Energy Finance, 2021). With a large forecasted fleet of EVs, expected to
reach 102 million units by FY30 according to research by Singh et al. (2020), V2G techniques can help EV batteries store
excess output generated by energy sources like wind and solar and release them at times of peak demand thereby
helping balance supply with avenues and timings of increased demand.
For instance, EV users could be incentivised to charge their vehicles during the day when solar energy is plentiful. This
may be made possible through the use of EV chargers at the workplace that take advantage of vehicles that remain
parked and idle for long periods. In the evening, when electricity demand peaks and solar energy is not available, users
can plug in their EVs to a V2G charger located at or near their homes. These V2G chargers would feed into the grid,
thereby helping meet the peak demand.
Two case studies from India- one concerning itself with solar and the other with hydropower- have been presented
below to serve as examples as to how this approach can be emulated at scale as India goes about increasing its share of
intermittent renewable energy in its grid.
1) Case I: Simulation carried out byTERI in Delhi
Objective of the study: The study simulated a V2G model for a typical summer day in Delhi, in order to assess its utility
in promoting peak shaving/ shifting through time-of-day/ differential tariff mechanism, demand response (DR) and
demand side management (DSM), integration of solar rooftop, and potential for emergency back-up applications.
Findings: EV can be used to supply power to the grid (V2G) from its storage during peak hours and be charged back
from the grid during off-peak hours or when output from solar radiation is maximum (Datta, 2018).
Lessons learnt: i) Aggregated models can help charging stations and EVs save on high storage costs. ii) Time of Day
(ToD) tariff should help manage peak hour demand and vehicle owners could be given financial incentive to participate
in giving power back to the grid . iii) V2G could also help India achieve other goals such as higher grid integration of
renewables, enhanced fuel security brought out by larger penetration of EVs, and a transition to a low-carbon pathway
for growth (Datta, 2018).
2) Case II: Simulation carried out by members of the EEE Department at Amrita University in conjunction with an
Assistant Engineer at the Kerala State Electricity Board to consider the value proposition of V2H in
hydropower-dependent Kerala.
Objective of the study: The study attempts to provide strategies to increase the cost advantage of EVs by reducing its
payback period by exploring the possibility of vehicle-to-home (V2H).
Findings: The simulation confirms that the envisaged V2H setup would be capable of feeding peak power to 45-50
urban homes of Kerala for a duration of 1-1.5 hours. Moreover, it argues that additional savings can be achieved by
downsizing the required transformer capacity from 250kVA to 100kVA. Given Kerala is highly dependent on

unpredictable hydropower supply, the authors argue that the need for scheduled power cuts can be minimised if V2H is
leveraged for load levelling (Kumar et al., 2015).
Lessons learnt: i) V2H can enable capacity enhancement during peak load hours in the Indian scenario by utilising the
stored energy available in the EV. ii) V2H can go a long way in addressing two major technological problems, namely,
the relative cost disadvantage of EVs and peak levelling of Indian power grid. iii) While the hypothesis has been made
for a specific state, the study claims that similar benefits can be expected in other Indian States as well (Kumar et al.,
2015).
3. Additional Benefits for India
In addition to the imperatives mentioned above, there are certain other advantages that India could expect with
implementation of V2G, most notably with respect to its potential role in stabilising the grid. Such services that cater to
the Distribution System Operators (DSOs) are called DSO services.
Peak shaving
Peak shaving refers to levelling out peaks in electricity demand by proactive management of said demand and the
elimination of short term demand spikes. While peak demand occurs rarely, utilities are implored to account for them
through investments in generators or networks to supply such quantum as may be necessary to sustain the peak
demand. As such these investments and assets mostly remain underutilised (Jones et al., 2021). V2G enabled EVs can
help manage the overall demand load by exporting energy at times of peak demand and then charging up during off
peak periods. Considering this process does not require any additional hardware investments, V2G can allow utilities to
deal with peak demand in a cost-effective manner. Additionally, V2G can help avoid local network congestion wherein
networks may not have adequate capacity to transport the required electricity to the consumer (Jones et al., 2021). This
is called constraint management. V2G can improve network asset utilisation and defer the investment in transmission
and distribution assets such as power lines and transformers which, in turn, can reduce network charges for all
connected customers.
A study conducted at University of California, Los Angeles with 30 EVs used a smart algorithm and bi-directional
charger to flatten the original base load curve by shaving the peak by approximately 30% (Gadh, 2018). Similarly, a
demonstration at Colorado’s Fort Carson Military base using two electric trucks, achieved 43 kW of peak shaving worth
approximately USD 860 (Millner et al., 2015, as cited in Steward, 2017). Peak shaving can also, therefore, much like the
services discussed earlier, be financially profitable for EV owners. A cost-benefit analysis for V2G in Shanghai, in fact,
showed that the larger the fleet of vehicles participating in V2G, the more the peak shaving load is, and the greater the
users’ income will be (Li et al., 2020).
Reactive power support
Voltage control has become increasingly challenging with more and more distributed energy resources (DERs)
exporting power into networks that are already operating near the maximum limits of their voltage ranges. Generally,
voltages are regulated by controlling reactive power. Reactive power is “the power that flows back from a destination
toward the grid in an alternating current scenario” (Reactive Power, 2021). Decreasing reactive power causes voltage to
fall while increasing it makes voltage rise. V2G equipped EVs with appropriate controls can offer voltage support and
power factor correction by controlling the reactive power without any material effect on the battery. “Reactive power
can be injected into the grid from a V2G EV charger by controlling the AC-DC converter and the DC-link capacitor
without affecting the current drawn from the battery. This also means that, in case of DC chargers where the converter

is installed in the charger instead of in the vehicle, the vehicle may not be required to be plugged-in for the charger to
provide reactive power support. This makes the installation of V2G DC chargers extremely useful for reactive power
control” (Jones et al., 2021). A number of studies (Rogers et al.,2010; Liu et al. 2018) have demonstrated the efficacy of
EVs in helping stabilise the grid through voltage and frequency regulation.
Network security and demand forecasting
As discussed earlier, V2G can improve the grid’s capability to quickly respond to sudden disturbances thereby
enhancing the strength of the network to recover from minor shocks and demand fluctuations. Moreover, anonymised
data collected from charging points can help grid engineers predict future demand patterns and improve grid
performance through network planning and by making necessary operational adjustments (Jones et al., 2021).
EV batteries as emergency inverter backups
In the case of a power outage or scheduled load shedding- the latter of which continues to be a common phenomenon
in emerging economies like India when faced with increased demand burdens- bidirectional charging setups can
leverage existing charge in EV batteries to make them act as an emergency backup unit for temporarily powering the
home or business premises (Ahmad & Sivasubramani, 2016). E4W and larger vehicle batteries are large enough to
provide emergency power for lighting, common home appliances etc. for several days through V2H applications. In
fact, EV batteries can augment or even replace existing back-up or UPS systems. Depending on local requirements and
suitable applicability, this could result in cost savings and potentially lower the carbon footprint if reliance on diesel
generators or system sizes can be brought down (Cenex, 2020). The concept holds immense promise in disaster-prone
regions. Japan has used V2H to combat electricity loss during tsunamis and earthquakes (Gerdes, 2019). Given the
recent spate of cyclonic activity on Indian shores with cyclones Tauktae and Yaas causing widespread destruction, the
potential for this usage must be probed in India’s specific context.
Personal Net Zero/ Self Sufficiency
EV owners with access to on-site renewable energy technologies such as small-scale wind and solar PV (photovoltaic
systems) can optimise their self-consumption of energy. This will, of course, depend on whether the given site’s on-site
generation profile exceeds its consumption profile at any point (Cenex, 2020). If it does, an absence of technical risks,
strong consumer interest, and the increasing importance of enhancing one’s environmental reputation for both
members of the public and businesses at large make this a very strong value proposition for diverse consumer groups in
India. Further, “V2G can also promote investment in increased generation capacity and low-carbon consumption
technologies such as heat pumps” (Cenex, 2020).
Challenges for India
Existing EV scenario and segment-wise penetration profile
India’s current EV penetration levels are incredibly low with EVs accounting for less than 1% of the overall automobile
market: there are less than 1 million registered EVs out of 230 million registered motor vehicles in the country (Jain,
2020). Most starkly, only 0.07% of the cars in India are electric (Kaul, 2020). The overwhelming majority of EVs in India
are e-2Ws and e-3Ws, both of which have limited practical utility for V2G given their small battery sizes. While there
have been studies that have looked at the use of e-2Ws for V2G, such as by Hsu et al. (2018), monetary gains for
individual e-2W owners are likely to be miniscule even if aggregation can be achieved. Even in the case of cars, none of
the EV models available in India at present allow for bidirectional charging. Moreover, India’s EVs remain unaggregated

and geographically spread out making it hard to strategically locate bidirectional charging points, and raises legitimate
reliability concerns for utilities seeking to scale V2G for grid services such as peak shaving and voltage control.
Thankfully, going by research by Singh et al. (2020), e-4W are forecasted to see a sizable increase in India7
and coupled
with a coterminous reduction in V2G hardware costs, India’s EV profile should become more in sync with the demands
ofV2G implementation at scale.
Absence of regulatory provisions and logistics data for aggregation of DERs
For EVs to participate in the provisioning of energy to the grid, there must be a regulatory regime to allow for seamless
integration and aggregation of distributed energy resources (DERs), including EVs. The existing electricity transmission
and distribution setup in India is highly centralised with a lack of regulatory impetus for third party aggregators to
participate in resource aggregation. EV aggregation is necessary for an adequate response to wholesale market signals
(Das & Deb, 2020). While regulations on certain minimum thresholds for participation as a grid resource are necessary,
the current thresholds for participation are unfairly high for smaller players looking to play a part in the local power
market. There is an unhealthy obsession with power supply measurable in kW even though similar quantities of energy
can be acquired through a larger number of aggregated DERs. Additionally, there is a need for reliable data about
different customer archetypes and historical use case scenarios for aggregators to properly assess their ability to serve
the grid at given points in time and stack value for their customers of different kinds (Jones et al., 2021). Such granular
data regarding charge timings, trip route etc. is currently lacking in India’s case for potential aggregators to leverage.
Lack of robust communication networks and protocols for linkages with the grid
V2G is ideally suited for a fully operationalised smart grid. Even in the absence of a strong smart grid infrastructure,
V2G may still be feasible provided there are robust communication networks and protocols for relay of information
across various nodes of the grid and between the wholesale market and the aggregators. V2G requires near real-time
communication between the utility and the charging station and also between the charging station and the individual
EV. On the other hand, V2G also involves “two types of communication functions: receiving wholesale market signals
for the resource and sending meter performance data to the wholesale market” (Das & Deb, 2020). A communication
standard is essential to sending and receiving messages between the aggregator and the wholesale market. Standards
will also be required for downstream communication to ensure that each participating entity of the V2G programme is
equipped to respond to the message (Das & Deb, 2020). Communication is also needed to make sure that the potential
difference during charging does not lead to reverse flow of energy. India is currently not well positioned to have a
common standards umbrella. It could consider OpenADR, a commonly used and highly secure two-way information
exchange model and Smart Grid standard. ISGF has partnered with OpenADR alliance to seek out case use scenarios
and opportunities in India (OpenADR Alliance, ISGF Partner on India’s Smart Grid, n.d.). Widespread applicability,
however, is still several years away.
Absence of an ancillary service market
India lacks an ancillary service market in the power sector to allow for frequency response and voltage control to be
actualised as veritable value streams. Only slow tertiary reserves are currently used. Yet another obstacle is that the
DISCOMs primarily opt for above-mentioned services to “bridge supply gaps during peak hours, which defeats the very
purpose of ancillary services. Until an efficient ancillary service market emerges in India, leveraging V2G benefits will
remain a distant possibility, which, in turn, hurts the business viability of V2G” (Das & Deb, 2020). The Central Electricity
Regulatory Commission (CERC) has recently released the new draft Ancillary Services Regulations, 2021. The draft
7
Forecasted number of e-4Ws by 2030: 5 million units

regulations allow for the participation of energy storage and demand response resources in the provision of ancillary
services (Ranjan, 2021). While this is definitely a progressive step, a lot more still needs to be done. Additionally,
policymakers must desist from centralisation tendencies. EVs can offer better support through local market
mechanisms than through centralised structures for ancillary services delivery.
Prevailing tariff structures
Price signals are necessary for any meaningful bidirectional flow of energy. Time of Use (ToU) tariffs are one of the most
commonly used methods to signal savings or earning opportunities for V2G equipped EV owners. In India’s case,
respective State Electricity Regulatory Commissions (SERC) are responsible for determining tariffs for different
consumer categories with the National Tariff Policy providing overarching guidance for the same. The category under
which EV charging falls, differs from State to State. While some like Goa have added a separate category called Public
EV Charging Stations, others like Andhra Pradesh or Punjab have specified EV tariffs under the existing categories.
Three States- Uttar Pradesh, Kerala and Maharashtra- have notified Time of Day (ToD) rates specifically for EV charging
(Das & Deb, 2020). EV specific ToU tariffs are, therefore, a starting premise for a V2G ecosystem. However, ToU rates
are no panacea and there are concerns that they may create new peaks as the EV penetration in a given region
increases (Das & Deb, 2020). Real-time dynamic pricing as an extension of ToU rates should be explored to prevent
secondary peaks and accurately reflect market and grid conditions. Upper thresholds may be set to prevent exorbitant
charges for customers. The efficacy of dynamic rates is yet to be established beyond doubt and there are fears that the
implementation burden in terms of investment required might be too large for a country like India. Additionally, the
added complexity may hinder wider customer participation by obfuscating visible monetary gains (Das & Deb, 2020).
ComplexValue chains
V2G value chains have myriad actors including, but not limited to, the vehicle user, the vehicle owner, an aggregator
and an energy supplier. For V2G to be a viable business model, all these stakeholders should be able to extract some
financial value from the endeavour which limits the profitability for each player (Cenex, 2020). These stakeholders must
share whatever revenue is generated. Therefore, unless the gains are substantive each actor is less likely to continue
participating in the process thereby potentially imperiling the whole value chain.
Nudging customers towards behavioral and attitudinal changes
A big challenge for V2G implementation at scale is to convince EV users to promptly respond to price or demand
response (DR) signals from utilities and change their trip routes and schedules accordingly. Even if the EV may not be in
a position to readily respond to the said signals, the charge point operator must at least have reliable forecasts about
the timings at which EVs may be available to participate in bidirectional flow back to the grid for them to assess the
capacity of power that they can provide to the power market. This can be especially detrimental to the business viability
considerations given that many of the benefits associated with V2G in any case do not lend themselves to neat and
accessible valuations. Similarly, it will be hard to convince EV owners to let their vehicles operate at a state of charge
(SOC) that is less than the maximum possible amount of charge for the battery. These issues are in no way unique to
India. The pilot carried out at the University of California, San Diego (UCSD) (discussed in the next section) also came to
the conclusion that predicting available capacity in advance can be cumbersome and challenging especially with a
highly limited number of EVs and varying personal schedules of drivers (Everoze & EVConsult, 2018). Both the
challenges discussed above may be addressed, to some extent, through aggregated consumption and supply
mechanisms such as coordinated EV fleets or battery swapping stations or even electric bus fleets that may operate at
fixed timings. For tapping the true earning potential that V2G can offer to individual EV owners, however, a host of

measures including proliferation of charging points, design of strong time-sensitive incentive structures as well as
changes in tariff structure and rates will be necessary. These have been discussed in a later section that deals with
principles to guide future policy in this domain.
Concerns about the suitability and the performance of batteries indulging inV2G
As mentioned earlier, batteries of e-2W and e-3W are not of optimal size to support V2G, the vehicle classes which form
the majority chunk of EVs in India. The added problem in India’s case is that the EVs on sale here mostly have batteries
with discharge rates of 0.3C. The C rate denotes the rate at which a battery is discharged relative to its maximum
capacity. A 1C rate, therefore, means that the discharge current will discharge the entire battery in 1 hour (MIT Electric
Vehicle Team, 2008). For V2G, batteries with discharge rates less than 1C are not particularly suitable. High discharge
rates, however, have their own set of problems. In a country like India with high ambient temperatures, high rates of
discharge could result in excess heat and manifest as a serious safety hazard. Thankfully, battery management systems
(BMS) can take care of these issues (Das & Deb, 2020). There are also challenges relating to battery degradation
management with a paucity of sensing techniques and algorithms to assess and guide usage towards the expansion of
battery life. Finally, there are anxieties regarding the impact of V2G on battery performance and its longevity. While
some studies have suggested that repeated cycling degrades the battery, yet another group of scholars, led by Dr.
Kotub Uddin from the University of Warwick, has demonstrated the opposite. Their research has shown that provided
‘optimised’ or ‘smart’ V2G systems are employed that are designed to work more responsively and efficiently, not only
is the adverse impact of V2G limited, battery life could even be extended beyond the case in which there is no V2G
(Uddin et al., 2018). Pilots from Denmark (ACES project) and California (INVENT project) found the battery degradation
on account of V2G to be minimal (Marinelli et al., 2020; Everoze & EVConsult, 2018). Having said that, it could be argued
that the effects over the long term could be drastically different. More pilots and simulations should give us a better
understanding of the issue.
Additional infrastructural investments and upskilling requirements
Notwithstanding the expected expenditure on bidirectional charging points and grid upgrades, there are a host of
supplementary infrastructural investments that need to be made for successful V2G implementation in India. These
include the need for two way smart metering, the necessary infrastructure to discharge EV batteries with different
States of Charge (SoCs) at the same charging point, investment in CHAdeMO chargers etc. The grid and charging
station operators must undertake additional costs of monitoring and controlling the vehicle-grid interactions, paying
owners, and administering the system. The charging station should also have “appropriate Loss of Mains (LoM)
protection equipment to ensure the vehicle does not feed power into the grid during a fault or when maintenance work
is underway” (Das & Deb, 2020). Additionally, implementing V2G will compel grid engineers and maintenance workers
to upgrade their skills in order to put the required changes into action. For instance, bidirectional battery chargers have
a complex controller and a high-tension cable, with the latter requiring safety precautions to be taken. Likewise, the
performance of CHAdeMO chargers is dependent on operating conditions, highlighting the importance of proper
calibration and a thorough knowledge of the employed hardware on part of the operator when providing services via
V2G (Das & Deb, 2020).

Review of globalV2G pilots
Figure 3: An overview ofV2G pilots in the world. The number denotes the number of pilot(s) in the given region.
Source: Data taken fromV2G-hub.com
The section looks at a few successful V2G pilots that are being, or have been, implemented in various parts of the world
(Table 4). The purpose is to derive lessons that can be learnt from these studies and assess whether, and to what extent,
they provide a basis for emulation in India.
Table 4 : Review of globalV2G pilots
Name of the Pilot,
location, period of
operation
Project description
Operational
details
Services
offered
Results and lessons learnt
Parker project,
Denmark, 2016-18
Project sought to test
the ability of electric
vehicles to provide
grid services using
real world fleets.It
identified and
addressed barriers to
commercialisation.
And compared the
capability of different
cars. It was the
world’s first fully
commercial
vehicle-to-grid hub:
Vehicles used:
Nissan LEAF
(30kWh), Nissan
E-NV200 (24
kWh) & Mitsubishi
Outlander
(12kWh)
Charging location:
Work (utility)
Charge Point: 50
units ENEL 10kW
DC charger
Customer offer:
Monthly fee
which includes
charger
Frequency
management,
constraint
management,
intra day/day
ahead trading
for third party
intermediaries.
i) It is possible to commercialise this technology
through the provision of a Frequency Containment
Reserve (FCR).
ii) Key regulatory barriers identified include- 1)
poorly defined grid connection pre-qualification
process given likelihood of different cars & chargers
and need to assess performance at aggregated level;
2) high cost of settlement meters; 3) high energy
tariffs and taxes, including double counting.
iii) Technical barriers included: 1) long duration
frequency bias – service required often exceeded
kWh capacity requiring lower kW bids; 2) two way
energy loss - discharging at power levels lower than
the rating of the charging equipment resulting in low
efficiency and high losses.

City-Zen project,
Amsterdam,
2014-19
Small-scale
commercial project
with pioneering focus
on DSO services.
Adopted a holistic
approach with
multiple power
sector use cases.
Vehicles used: 2
Mitsubishi
Outlander, 2
Nissan E- NV200,
1 Nissan LEAF
Charging location:
Work and public
Charge Point: 4
DC V2G chargers,
10 kW,
MagnumCap
Customer offer:
Customers paid
flat rate of 10
Euro cents/ hour
of plug-in time
(subsidised by
public funding)
Constraint
management,
power quality
regulation,
third person
intermediary
energy trading
i) Favourable response time observed, only
marginally slower than stationary batteries.
ii) In terms of market readiness, DSOs engaged
proactively with V2G, and this is expected to create
new revenue opportunities in the future. Barriers
include legacy solar subsidy regime, and unclear grid
acceptance requirements.
iii) A key finding was that it is crucial to ensure that
grid stability does not interfere with the charger. The
City-zen team recommended that grid acceptance
standards be amended to make it mandatory for
‘slow starters’ to be incorporated into all V2G
chargers. Slow starters limit the inrush of voltage,
making the power quality more stable, and the cost
of incorporating them is supposedly low.
iii) Biggest challenge was with availability of assets
for usage (i.e. plug-in time plus appropriate State of
Charge - SoC) given the small scale of the project.
iv) Another challenge is to quantify and clearly price
services such as congestion management.
Grid Motion, France,
2017-19
Large scale, privately
funded
demonstration of
V1G8
and V2G – to
deliver cutting-edge
consumer insights
with respect to
frequency response,
arbitrage etc.
Vehicles used: 15
Peugeot iOn or
Citroen CZERO
Charging location:
work
Charge point:
V2G - Enel 10 kW
DC, (V1G is using
bidirectional
Nuvve 18 kW AC
chargers)
Customer offer:
free charger
Frequency
response,
arbitrage
through intra
day and day
ahead trading,
reduced ToU
charges
through
time-shifting.
i) Study conducted to demonstrate commercial
feasibility and to break down barriers for market
access of DERs in France.
ii) It was found that regulatory barriers exist relating
to introduction of diverse, distribution level kW-scale
resources i.e. minimum participation limits to trade
and access frequency market.
iii) Battery min./ max. usage was found to be
dependent on the specific model of the car.
ACES project,
Denmark, 2017-20
The Across
Continents Electric
Vehicles Services
(ACES) project aimed
to analyse the
technical and
economic benefits of
EV integration in the
Vehicles used:
Nissan LEAF (30
kWh) and
E-NV200 (24
kWh).
Charging location:
Commercial
(research centre)
Charge point:
bidirectional
commercial
Frequency
response,
constraint
management,
peak shaving.
i) By considering a combination of Japanese charging
patterns and Danish driving behaviour, it is derived
that a 100% EV penetration would determine an
evening peak coincidence factor9
equal to 40% for a
3.7 kW charge level.
ii) Frequency control could yield a profit of more than
1000 Euros/ year per EV with a 10 kW bidirectional
charger. However, the efficiency of the bidirectional
charger, market conditions, and price per service
could severely reduce the profit.
iii) The additional wear due to the intense
9
Coincidence factor is the peak of a system divided by the sum of the peak loads of the individual components of the system.
8
V1G or smart charging refers to the ability to dynamically control the time and magnitude of charging power from the power
source to the EV.

island of Bornholm in
Denmark,
augmented by real
usage patterns, grid
data and field testing
for across continents
replicability.
chargers
(ENEL-Endesa 10
kW)
Customer offer:
Not known
bidirectional power flow during grid provision, such
as frequency control does not drastically degrade the
battery.
iv) A generic power system should be able to accept a
primary power reserve of up to 50% from EVs
without any major problems.
v) 100% EVs in Bornholm (equal to 17,500 vehicles)
could lead to an equivalent storage of 700
megawatt-hours (MWh) of electricity.
KEPCO project,
South Korea,
2015-17
Project was part of a
broader Vehicle Grid
Integration program
laying the technical
groundwork for the
smooth roll-out of
EVs in Korea.
Vehicles used: 2
Hyundai (28kWh
1xAC 1xDC); 1 i10
(20 kWh AC)
Charging location:
Commercial
(research centre)
Charge point: 2 x
AC 6.6kW
charging / 3.3kW
discharging. 1 x
10kW DC
Customer offer:
Not applicable -
no real
customers;
Program was
conducted by
researchers.
Time-shifting
for energy use.
i) Response within 10 seconds achieved.
ii) Tested EVs responded to various types of demand
response signals with more than 95% accuracy.
JUMPSmart MAUI,
Hawaii, 2012-16
Part of a broader
smart grid project
seeking to study
renewable energy,
electric vehicles,
energy storage, and
controllable loads in
Maui, Hawaii.
Vehicles used:
Nissan LEAF
Charging location:
Home
Charge Point:6kW
Hitachi DC
Customer offer:
Free charger
provided
Frequency
response, peak
shaving
i) 80 families using the vehicles ‘normally’, typically
plugging in on return from work. This limited the
diversity of use cases and restricted the time periods
during whichV2G could be provided.
ii) Hitachi developed its own integrated Demand
Management System (DMS) to create a charging
schedule so as to fill up the gap between the
estimated power generated by renewable energy
and load of the next day.
iii) Export was limited to 1kW, even though 6kW was
modelled. Interconnection standards were onerous
and specific to Hawaii.
iv) It was challenging to forecast vehicle behaviour
and hard to get new users onboard.
v) Provided demand response through V2H, EVs
were found to be fast and flexible and when
combined with other resources were observed to be
very valuable to the grid.

INVENT project,
California, 2017-20
Large-scale trial to
test V2B integration
on UCSD campus’ 45
MW microgrid with
significant amount of
solar energy
generation.
Vehicles used: 2
Mitsubishi
Outlanders (12
kWh); 7 Nissan
LEAFs (24-30
kWh); 9 Chevy
Bolts/ BMW i3s/
Daimler Smart/
Model 3/ LEAF
Charging location:
Commercial
(university
campus)
Charge point: 9
AC Nuvve
PowerPorts
(18kW) 9 DC
Hitachi (6 kW)
Customer offer:
Free charger,
parking and
electricity
Peak shaving,
frequency
regulation,
reduction of
peak demand
i) Battery Degradation: V2G does cause some
additional degradation but it is much smaller than
that experienced through driving behaviour,
particularly on account of regenerative braking.
Potential damage depends on service, with full
charge/ discharge cycles being the worst.
ii) It can be a challenge to assess the amount of
power that can be provided to the market with a
lower number of EVs.
iii) Unexpected damage to test vehicles, and drivers’
different trip schedules can make planning harder.
iv) Plug-in time can be optimised by assigning
convenient parking locations to project drivers.
Source: Data sourced from Everoze and EVConsult (2018), Marinelli et al.(2020), and Das and Deb (2020)
Principles for designing policy onV2G
For a technology in its incipient stages that requires both a long gestation period as well as continued collaboration
across sectors and domains, it might be imprudent at this stage to prescribe clear, actionable policy solutions. Broad
principles that can guide future policy design should be much more useful at this point in time. The following are some
principles which may be kept in mind when thinking aboutV2G in India’s context.
Optimising relay of price signals and other information to all parties
It has been established that ToU tariffs are essential for the full gamut of opportunities emanating from V2G to be
realised. It is important for regulators and power providers in the country to experiment with, and subsequently
implement, dynamic pricing strategies (Das & Deb, 2020). ToD tariffs specifically designed for EV charging could be a
good starting point. Capacity could be slowly developed for real-time pricing for which there is currently no precedence
in the country. Later on, innovative pricing models may be explored depending on the forecasted demand and usage
patterns. These could include critical peak pricing, among others. Efforts should also be made to ensure stability and
predictability in the regulatory and pricing regime considering the fact that States enjoy substantial freedom to decide
their rates and pricing categories. For optimising monetary gain for EV owners, aggregators need a whole range of data
about their usage patterns, route timings and battery status. For coordinated communication to achieve these ends, a
certain degree of maturity in AI, Internet of things (IoT), telematics, etc. is essential. Attempts should be made to
expedite applications of these technologies in EV-related domains.

Adopting robust communication standards
Standardised communication protocols may be adopted for better communication between the stakeholders. India
could explore OpenADR or the V2G focused ISO 15118-20 (De Bruyckere, 2021). Additionally, the Central and State
Nodal Agencies should “mandate all smart charging service providers to install OCPP-compliant charging equipment
and create a central cloud-based backend system (Charging Station Management System) adhering to the OCPP
communication protocol, to enable real-time charging data transfer to a Central Management System, remote
modification of charger configuration, and remote charging session control” (Das & Deb, 2020).
Decentralising the power sector
India needs to aim for aggregation in its power sector and structure ways to better integrate the multiplicity of DERs
that are staking a claim to complement the capabilities of the grid. This includes being more open to involving smaller
players and third party aggregators in the supply of power and designing hybrid market models for DISCOMs wherein
both DISCOMs and third party aggregators can compete for customers. Appropriate regulatory design should “enable
all these entities to compete on a level playing field and maximise opportunities to reap both wholesale and distribution
benefits” (Das & Deb, 2020). Secondly, network operators should service specifications with V2G in mind. This could
include priming the grid to allow for frequency response injection through V2G with a response time of under two
seconds; optimally balancing power and duration for successful reverse flow of power through V2G enabled EVs,
among others.
Treating EV owners as prosumers
EV owners could enjoy a regulatory level playing field with rooftop solar generators with them being treated as both
consumers as well as producers. Necessary regulatory amendments may be made to broaden the concept of a Virtual
Power Plant (VPP) and similar net/ gross metering standards may be devised to integrate the energy being supplied by
EVs to the grid. Adequate measures will also be needed to be taken on applicable rates for electricity export, settlement
period, limit on system capacity, communication capability, etc. (Das & Deb, 2020).
Encouraging EV aggregation through an emphasis on MaaS
Aggregation is necessary to achieve scale in V2G operations. Many services discussed in the preceding sections only
make financial sense if provided at scale through aggregated portfolios of EVs. Aggregation usually occurs at the level
of the charging service provider. While aggregation of demand is currently prohibited by existing regulations, an
in-principle argument can be made for its exploration. This should give an opportunity to design portfolios by clubbing
EVs depending on the nature of the vehicle, their availability, route patterns and timings etc. Aggregators could then
make use of these use cases to customise offers and co-optimise several value stacks for their different sets of
customers (Jones et al., 2021). This could be done by integrating mobility-as-a-service (MaaS) models to incentivise EV
users through multiple avenues (Everoze & EVConsult, 2018). Additionally, aggregators could specifically target
services where V2G adds substantial value such as - “(1) for services where location matters; (2) locations with surplus
solar capacity; (3) markets with high peak pricing or charges; and/or (4) for longer duration services” (Everoze &
EVConsult, 2018).
Prioritising phased investments in infrastructure, R&D and upskilling
There are obvious infrastructural investments that need to be made for grid and technology upgradation to implement
V2G at scale. A sudden capacity upgradation is neither desirable nor financially feasible for India. It should instead

explore financing opportunities through long period debt instruments or other such means to avoid asset liability
mismatch scenarios and undertake a phased upgradation of its infrastructure. More immediate attention is needed on
conducting pilots in Indian conditions, building regulatory and technological awareness on the issues involved, studying
impact of high ambient temperatures on battery health, and finally, upskilling the workforce with a focus on grid
engineering, mechatronics, telematics etc.
Encouraging OEMs to embrace bidirectional charging
OEMs will need to be more welcoming of bidirectional charging possibilities. Most OEMs do not produce the batteries
they configure into their EVs, with battery manufacturers providing a set number of charging cycles on their battery
warranty thereby limiting the scope for continual charging and discharging necessitated under V2G. Currently, OEMs
are predisposed to invalidating the warranty if their EV is used for bidirectional charging. This needs to change.
Additionally, OEMs may be mandated to provide bidirectional charging capability in their vehicles. As a lesson from the
City-Zen project, slow starters may be compulsorily installed to limit the effects on a sudden voltage inrush (Everoze &
EVConsult, 2018). Since slow charging for V2G is a likely next frontier for the technology as it provides better support in
providing grid-stability and reliability through V2G, OEMs must try to aim for hardware maturity especially with respect
to AC chargers to bring down the cost and increase efficiency. Finally, EV batteries with at least 1C capacity should be
prioritised for larger vehicles such as cars.
Incentivising EV owners to participate inV2G
This is perhaps the biggest challenge for large-scale V2G implementation. In addition to the measures mentioned
earlier, attractive subscription offers, charging top-up services as well as high price differentials between charging and
supplying energy back to the grid may be probed. When developing the incentive mechanisms, existing interconnection
rules should be kept in mind and additionally, the rights of customers must be protected – they should be given the
ability to override signals when participating in such programmes, in which case they would have to forgo any monetary
benefit they would have otherwise received (Das & Deb, 2020). Countries across the world are experimenting with a
range of demand side incentives to boost EV sales. These include special parking spots, lane preferences, congestion
charge waivers etc. (Hall et al., 2020). Perhaps at a later stage when V2G becomes more mainstream, such exclusive and
affirmative measures may be considered forV2G-enabled EVs as well.
Widening the participatory base and ensuring an equitable burden of costs
Modelling by Cenex (2020) has shown that “using V2G for revenue generation is mainly advantageous for use cases
where vehicles are plugged in for long periods of time whilst not charging. The average customer with plug-in rates of
30% could capture just a quarter of the annual revenues from TSO [Transmission System Operator] services compared
to those able to plug in 75% of the time.” India must try to set up as many bidirectional charging points as possible,
especially at strategic locations such as parking spots at shopping complexes and office spaces. Of course, this would
require technological maturity in slow charging (AC) as well as massive investments, but the potential benefits
outweigh the costs. The private sector can be enthusiastically involved in this process. The overall participatory base
can be further widened by making necessary changes to institutionalise an ancillary services market for arbitrage,
frequency response etc. Care should also be taken to make sure that costs entailed in V2G setup and operations are not
disproportionately borne by either the customers or the grid operators.

Way forward
With reducing battery prices and better overall cost parity of EVs, India’s segment-wise EV penetration profile can
safely be forecasted to be suitable for implementing V2G at scale in the future. By implementing differential electricity
tariffs; ensuring improved coordination between grid and distribution outlets; creating an ancillary market for services
such as frequency regulation, voltage control, and black-start, India could position itself favourably for the oncoming
V2G revolution.
What is needed is an adequate understanding of the issue through pilots designed specifically for Indian conditions.
Additionally, there is scope for greater research to estimate and quantify potential benefits of V2G adoption for India.
The next few years should hopefully witness an upsurge of interest in this domain both through work by researchers
working in mobility and energy domains as well as through B2B collaborations to unearth the economically productive
forces that can be leveraged through V2G. Collaboration is also the need of the hour among all stakeholders involved in
operationalisingV2G. Only well calibrated, coordinated and collective efforts can help India fully realise V2G’s potential.

Acknowledgements
The author would like to thank external reviewers Chandana Sasidharan, Principal Research Associate at the Alliance
for an Energy Efficient Economy (AEEE) and Ishan Bhand, Research Consultant at AEEE whose insightful feedback and
comments helped refine this Paper and sharpen its output.
Heartfelt gratitude is also expressed for Dr. Reji Kumar Pillai, President, India Smart Grid Forum; Mr. Sajid Mubashir,
Scientist G, Department of Science and Technology, Government of India; N. Mohan, Deputy General Manager,
Convergence Energy Services Limited (CESL); and Shyamasis Das for their support and guidance through initial
consultations.
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Ola Mobility Institute (OMI) is the policy research and social innovation think-tank of Ola, focused on
developing knowledge frameworks at the intersection of mobility innovation and public good. The
Institute concerns itself with public research on electric mobility, energy and mobility, urban mobility,
accessibility and inclusion, and future of work and platform economy. All research conducted at OMI is
funded by ANITechnologies Pvt. Ltd. (the parent company of brand Ola).
www.ola.institute mobilityinstitute@olacabs.com
https://twitter.com/OlaMobilityInst https://medium.com/@mobilityinstitute
Author:
Yash Narain
Yash is a Researcher at OMI. He holds a Master’s degree in Political Science from Delhi University and is an
avid mobility policy enthusiast.
Contributors: Shilpi Samantray, Aishwarya Raman
Peer Reviewers: Chandana Sasidharan, Principal Research Associate, Alliance for an Energy Efficient
Economy (AEEE); Ishan Bhand, Research Consultant, Alliance for an Energy Efficient Economy (AEEE).
Suggested Citation: Narain, Y., 2021. Vehicle-to-Grid (V2G) in India: Potential and Scope for driving EV
adoption. Ola Mobility Institute.
Disclaimer: Neither Ola, Ola Mobility Institute nor any party associated with this report will be liable for
any loss or damage incurred by the use of thisWhite Paper.
© Ola Mobility Institute. Copyright 2021 Ola Mobility Institute.
This work is licensed under the Creative Commons Attribution 4.0 International License. To view a copy
of this license, visit http://creativecommons.org/licenses/by/4.0.

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