The Chinese city of Hangzhou has signed an agreement with Kandi Technologies and nine other firms to deliver 20,000 electric vehicles (EV) for the city’s ‘pilot’ EV leasing programme.
Kandi is the only EV supplier to participate, while other involved firms will deliver the batteries and charging by the local utility, which will also fund construction of a charging and battery swap station network along with paying for the batteries.
The batteries will provide a dual use for grid stabilisation, or vehicle to grid (V2G) technology and will be financed by charges to electricity customers due to its dual use, according to forbes.com.
Further, the project will be the largest scale trial of the deployment of EV batteries for V2G.
The problem with the implementation of V2G is the split incentives between battery owners and the utility, but Hangzhou project will eliminate the conflict of interest as the utility owns the batteries, and the EVs will be only for lease.
The programme will begin in August this year and expected to be completed by the end of 2013.
