B2G technology is transforming electric vehicles from mere modes of transportation into dynamic regulatory units within the energy network. The establishment of numerous battery swapping stations not only enhances the energy replenishment system for new energy vehicles but also acts as a “buffer” for the power system. In early April, the traditional energy giant Sinopec officially announced its partnership with CATL to join the battery swapping ecosystem, with plans to develop a nationwide network of battery swapping stations. This year, they aim to build over 500 battery swapping stations, with a long-term goal of constructing 10,000 stations.
In March, CATL and NIO announced their collaboration to create the world's largest battery swapping network and promote standardization in battery swapping technology. The collaboration between Sinopec and CATL marks a significant leap from “vehicle manufacturer-level energy replenishment solutions” to a “societal-level mainstream energy infrastructure.” Importantly, CATL's "chocolate battery swapping" ecosystem, combined with B2G (Battery to Grid) technology, is playing a vital role in converting electric vehicles into dynamic regulatory units of the energy network, balancing the new power system. As gas stations evolve into comprehensive energy stations across the country, the largest distributed energy storage network globally is expected to develop rapidly.
In recent years, the integration of high proportions of renewable energy and power electronic devices has significantly reduced the power system's disturbance resistance and regulatory capabilities, leading to supply shortages during peak electricity usage and resource wastage during low-demand periods. The gap in flexible regulatory resources is widening. The power system is transitioning from a traditional “source-following-load” model to a more interactive “source-network-load-storage” paradigm. However, the load side currently lacks large-scale regulatory capabilities, and most centralized storage resources are misaligned with load distribution. Thus, distributed storage on the user side is crucial for alleviating pressure on the load side.
At present, user-side distributed storage primarily consists of commercial and industrial storage, which is relatively small in scale and may not be the most effective flexible regulatory resource. Based on the types of regulatory resources aggregated from virtual power plants in Shanghai and Shenzhen, the largest resource is not commercial and industrial storage, but rather charging and swapping resources, which possess greater regulatory capacity at a lower cost. Furthermore, in terms of safety, the power batteries in new energy vehicles have advanced further than commercial and industrial storage. Essentially, the vast amount of power batteries in electric vehicles can be viewed as individual distributed storage units. When connected, they form a massive distributed storage system that can achieve greater value through scale effects.
The initial vehicle-to-grid interaction has been widely applied in battery swapping stations, which regulate charging loads based on grid demand. However, the more significant potential lies in discharging to the grid through V2G (Vehicle to Grid) technology, which can fully unleash the regulatory capabilities of electric vehicles. The key to transforming a vast number of power batteries into flexible regulatory resources for the grid is the B2G technology. The main reason V2G has not yet been widely adopted is that the commercial model remains incomplete, facing challenges such as infrastructure development, owner willingness, and market mechanisms. The development of B2G technology and the battery swapping network has created a mutually beneficial commercial model, accelerating the construction of the world's largest distributed energy storage network.
CATL's commitment to battery swapping is not only a further expansion of its advantages across the entire battery production chain but also a significant step towards becoming a green energy supplier. The standardization of battery swapping and the construction of a battery swapping ecosystem effectively transforms batteries into a "public energy pool" for the entire industry. Battery swapping stations serve both as energy consumption nodes and storage nodes, converting massive charging loads from a burden on the grid into its support.
The "chocolate battery swapping" ecosystem developed by CATL breaks down barriers that prevent automakers from building their own battery swapping systems and promotes standardization, including battery size specifications and universal interface protocols. At the "Chocolate Battery Swapping" ecosystem conference, CATL announced collaborations with leading automakers such as Changan Automobile, FAW Hongqi, SAIC-GM-Wuling, GAC, and BAIC to launch new battery swapping models. The partnerships forged between CATL and NIO, as well as Sinopec, reflect a shared vision among multiple enterprises for new energy infrastructure planning, solidifying the direction of the battery swapping industry.
According to Sinopec's 2024 financial report, the company is transforming traditional gas stations into integrated "oil-gas-hydrogen-electric service" stations. Joining CATL's battery swapping ecosystem will undoubtedly accelerate Sinopec's transformation. CATL plans to establish 1,000 battery swapping stations by 2025 and collaborate with various partners to build a total of 10,000 stations, with a long-term goal of 30,000 to 40,000 stations. Calculating an average of 14-30 batteries per station, the storage capacity of 30,000 swapping stations could reach <b>33.6 GWh</b>, providing up to <b>1,120 GWh</b> of flexible dispatch resources for the grid from <b>20 million electric vehicles</b>.
Currently, the installed capacity of new energy storage in the overall power system remains relatively small. The total storage capacity from 30,000 battery swapping stations and 20 million vehicles is nearly seven times the existing new energy storage scale of <b>168 GWh</b> by the end of 2024. The vast number of battery swapping stations and their interconnected power battery resources may become a crucial component of user-side storage, playing a vital role in balancing the new power system.
As the penetration rate of new energy vehicles increases, user demand for charging grows, which can impose significant stress on the grid. CATL's Chairman, Zeng Yuqun, has stated that "chaotic large-scale charging will further exacerbate the peak-load characteristics of the grid and pose safety risks." Additionally, with the increasing share of volatile and intermittent renewable energy generation, the grid faces a growing need for flexible regulatory capabilities to maintain real-time balance. The rapid proliferation of high-voltage fast charging technology only heightens these concerns.
In proposals for the 2024 Two Sessions, Zeng Yuqun suggested that to transform burdens into resources and address the dual challenges in traffic and energy sectors, it is essential to explore the essence of vehicle-to-grid interaction (V2G) and investigate the bidirectional fusion of batteries and grids (B2G). In recent years, government support for V2G has been strong, yet widespread adoption remains challenging. Beyond profitability, many new energy vehicle owners worry that frequent charging and discharging may reduce the cycle life of their batteries. However, with reasonable charging and discharging management strategies, increased battery cycling does not necessarily lead to reduced lifespan and may even mitigate aging. Particularly for electric vehicles that are often idle, regular participation in V2G can help extend battery longevity.
Statistics from the State Grid indicate that most private vehicles charge, on average, around 50 times per year. Based on a vehicle lifespan of ten years, this means approximately 500 total charging cycles over the vehicle's lifetime. Even considering a minimum standard of 1,000 cycles, there are still about 500 available cycles, indicating a significant redundancy. However, instilling awareness and habits among users to participate in V2G is not straightforward. The essence of V2G is B2G, where users do not need to worry about battery residual value under the battery swapping model, and their batteries can benefit from more professional and orderly charging management.
B2G technology is key to transforming vast numbers of electric vehicles into flexible regulatory resources for the grid and is central to CATL's distributed energy storage strategy. Currently, CATL's high-performance hybrid battery and "chocolate battery swapping blocks" support B2G mode, potentially driving more power battery enterprises, charging pile companies, and terminal vehicle manufacturers to form an interactive ecosystem. Moving forward, CATL has stated that all new battery technologies will be applied to "chocolate battery swapping" models. The widespread adoption of B2G technology can enable electric vehicles to develop large-scale peak regulation capabilities: <b>100,000 B2G-supported electric vehicles</b> can provide <b>1 GW</b> of flexible power, equivalent to the output level of a medium-sized gas power plant. During peak electricity periods, clusters of electric vehicles can discharge to alleviate regional grid pressure and reduce the risk of electricity restrictions.
CATL's goal is to reshape itself as a green energy supplier, creating a large independent energy system capable of powering a large data center or even a city. Zeng Yuqun predicts that developing and managing "zero-carbon grids" could be ten times larger than supplying electric vehicle batteries. "Battery swapping stations will strive to utilize green electricity, becoming a key force in stabilizing the grid and supporting green energy consumption." This declaration from CATL highlights the potential of integrating solar energy generation on the rooftops of battery swapping stations, allowing for green energy storage and consumption, thereby forming a more efficient "solar-storage-charging integration" energy network. This makes battery swapping stations act as "buffers" for regional grids, transforming the battery swapping network into a dynamic balance network for power.
The construction of the battery swapping ecosystem will also help alleviate the challenges faced by distributed solar photovoltaic generation in terms of consumption. In recent years, the rapid increase in distributed solar installations has led to insufficient available capacity in many provinces across the country, making it difficult to integrate distributed solar into the grid. Battery swapping stations could become bridges that match large-scale charging loads with regional distributed solar power generation. Moreover, CATL and NIO are working together to build a comprehensive lifecycle loop encompassing "battery research and development, battery swapping services, battery asset management, secondary utilization, and material recycling." From a broader perspective, the centralized recovery of retired power batteries may represent the final piece of CATL's zero-carbon system. A significant challenge in battery recycling is the high channel costs due to dispersed ownership. Battery swapping stations can facilitate centralized recovery of retired batteries, and with accelerated battery technology iterations and the impending peak of retirements, battery recycling is expected to become a substantial growth area. Especially as CATL's battery circular economy is already the largest closed-loop industry chain in the global lithium battery sector, integrating battery swapping networks will create a win-win situation in terms of scale and efficiency.
Through battery swapping, CATL aims to achieve a zero-carbon closed loop while also establishing a mutually beneficial commercial model: users earn profits from charging and discharging price differences, battery swapping stations gain revenue from grid interactions, the grid reduces renovation costs, and companies lower their battery recycling costs. This collaborative approach will further promote the expansion of the battery swapping ecosystem.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/b2g-technology-transforming-battery-swapping-into-the-worlds-largest-distributed-energy-storage-network/
