Grand Festive Sale is LIVE! 🎉

Is India Ready for V2G? Opportunities and Challenges Ahead

Jun 06, 2025

Read: 6 mins

Author: Tanushree

ShareShare

v2g

The electric vehicle (EV) revolution in India is gaining momentum. And so, in direct proportion, is the related technology and infrastructure. There is a demand for a lot more than just cleaner transport. The way we produce, store, and use energy is also important. That’s right. Charging technology plays an essential role in how a country’s EV ecosystem evolves over time. 

In that sense, Vehicle-to-Grid (V2G) technology is playing an essential role in helping the charging infrastructure evolve. In fact, V2G is consistently being explored as a key enabler for smart grids and renewable energy integration. But the question remains (as per the headline): Is India ready for V2G?

In this blog, let’s explore what V2G is, and the opportunities and challenges that it presents for India’s power and mobility sectors. Let’s explore how does V2G work, V2G block diagram essentials, and links to G2V and V2G models.

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

Let’s address the most important question first: What is V2G?

The answer is simple…Vehicle-to-Grid (V2G) technology is a bi-directional energy transfer model that allows EVs to not just consume electricity from the grid, but also supply power back to it when needed. Thanks to it, every parked EV transforms into a mobile energy storage unit.

This raises some important questions: what is V2G, how does V2G work, and where does V2G full form fit in India’s context? It allows:

  • Grid support during peak load
  • Renewable balancing
  • Power backup in smart cities

With India’s ambitious renewable energy targets, V2G charging and V2G system integration could become game-changing in the near future.

How Does V2G Work? (+ Simple Block Diagram)

The V2G system operates using bi-directional EV chargers that can draw electricity from the grid and send it back from the EV battery when needed. It works on the principle of demand response:

  • When electricity demand is low, EVs charge
  • When demand is high, EVs discharge power back to the grid

A typical V2G block diagram includes:

  • The grid
  • Bi-directional charger
  • EV battery management system (BMS)
  • Communication module (via smart meters or aggregators)

This seamless interaction between vehicle and grid is often governed by protocols like ISO 15118, ensuring secure and standardized communication.

V2G vs G2V vs Smart Charging

So, how does Vehicle-to-Grid (V2G) compare with Grid-to-Vehicle (G2V) and Smart Charging? Let’s explore all of that in a tabular format.

Feature V2G G2V Smart Charging
Direction of Flow Two-way One-way One-way
Grid Interaction Charge + Discharge Only Charge Delayed/Optimized Charging
Consumer Incentives Yes (Energy Sale) No Sometimes (Tariff-based)
Infrastructure Needed Bi-directional chargers Standard EVSE Smart meters, apps

G2V and V2G serve different use-cases but can coexist in India’s growing energy ecosystem.

India’s Energy Landscape: The Context for V2G

India’s power sector is undergoing a massive shift:

  • The country aims to achieve 500 GW of non-fossil fuel capacity by 2030
  • The grid still suffers from intermittent power shortages and voltage fluctuations, especially in rural and semi-urban areas
  • Electric vehicles are projected to make up 30% of vehicle sales by 2030

This context makes India a prime candidate for deploying V2G technology, provided key enablers like V2G charger infrastructure and V2G technology diagram understanding are addressed.

Opportunities for V2G in India

V2G technology offers some clear enhancements to India’s charging infrastructure, which will play a large role in making EVs mainstream and the country meetings it’s 2030 sustainability targets.

1. Grid Stability and Peak Shaving

India’s grids face significant stress during seasonal peaks. V2G can help distribute load more evenly by drawing power from EVs during high-demand periods.

2. Boosting Renewable Integration

Both V2G and G2V technology can act as buffers for solar and wind energy, storing excess during surplus production and feeding it back when renewables dip—especially useful in states like Gujarat, Rajasthan, and Tamil Nadu.

3. Smart Cities & Urban Planning

India’s Smart Cities Mission presents a perfect ecosystem to trial V2G systems, especially in metros like Pune, Bangalore, and Hyderabad that already have EV adoption on the rise.

4. Income Potential for Consumers

EV owners could eventually earn incentives or payments by supplying stored energy back to the grid through V2G charger-enabled stations—turning cars into revenue-generating assets.

Challenges to V2G Deployment in India

Despite its promise, V2G faces some major roadblocks in the Indian context:

1. Lack of Bi-directional Charging Infrastructure

Most Indian charging stations currently support only one-way flow. Upgrading to V2G charger networks is expensive and requires technical standardization.

2. Battery Degradation Concerns

Repeated V2G charging cycles can accelerate battery wear, raising concerns for EV owners unless compensated adequately.

3. Policy and Regulatory Uncertainty

India lacks a clear regulatory framework or pricing model for V2G technology. Power purchase agreements (PPAs) with individual consumers are currently impractical.

4. Grid Readiness and Smart Metering

DISCOMs (power distribution companies) in many regions struggle with legacy systems. Real-time demand response, V2G block diagram planning, and smart metering are prerequisites for effective V2G systems.

5. Low Awareness Among Consumers and Manufacturers

Even among EV stakeholders, vehicle-to-grid (V2G) technology remains a niche concept. Educating consumers and encouraging OEMs to support V2G-ready vehicles is essential.

Global Inspiration: What India Can Learn

  • UK and Netherlands: Pioneering national trials with Nissan Leaf fleets and V2G charger hubs
  • Japan: Integrating V2G with earthquake-resilient backup systems
  • California: Utilities offering cash incentives to V2G participants

These case studies show that public-private partnerships, along with strong government policy, are essential for scaling V2G in the country. With more faith and effort, the dream can become a reality.

Early Signals in India

While still at a nascent stage, India is seeing a few V2G-aligned developments:

  • Tata Power has expressed interest in grid-integrated V2G charging
  • Indian Smart Grid Forum (ISGF) has released whitepapers on V2G and G2V technology
  • Startups like Numocity and Kazam are exploring smart energy services, laying foundational tech for V2G systems

However, full-scale pilots with proper V2G technology diagram implementations are yet to be rolled out.

What Needs to Happen Next?

  1. Define V2G Standards and Protocols under BIS (Bureau of Indian Standards)
  2. Incentivize V2G-compatible charging stations via FAME and state EV policies
  3. Encourage OEMs to roll out V2G-ready vehicles (hardware + software)
  4. Launch pilot projects in Smart City zones with DISCOM collaboration
  5. Build consumer trust through subsidies, battery warranty protection, and V2G system awareness

Frequently Asked Questions on V2G

Q1. What is the V2G full form?
V2G stands for Vehicle-to-Grid, referring to a system where EVs can feed electricity back into the grid.

Q2. How does V2G work in India’s current energy infrastructure?
While the potential is large, full-scale implementation requires bi-directional chargers, smart metering, and supportive policy.

Q3. Will V2G degrade my EV battery?
Battery degradation is a concern, but can be managed with controlled charge-discharge cycles and manufacturer guarantees.

Conclusion: Is India Ready for V2G?

With rising EV adoption, smart grid initiatives, and renewable targets, the stage is set. What’s missing is a synchronized push from the government, private sector, and utilities to convert this potential into policy-backed action.

In the next 3–5 years, V2G technology could transform India’s energy grid from a centralized, stressed network to a more democratic, distributed, and resilient ecosystem.

Explore more about India’s EV (and charging) ecosystem at Ecozaar.in.

0.0

Based on 0 ratings

Author

Tanushree (Author)

Tanushree is a dynamic business strategist with a knack for driving innovation in startups, especially in Fintech and Edtech. With 9 years of work-ex, an IT engineer from MIT Pune, & a MBA from IIM Bangalore (Marketing & Business Strategy), she’s got the mix of analytical and creative problem-solving.

Read more
LinkedIn
BadgeGift