The Australian Government has officially launched the national Vehicle-Grid Network (VGN), a groundbreaking initiative designed to encourage owners of plug-in hybrid and electric vehicles to contribute electricity back to the national grid. This initiative, announced by Federal Climate Change and Energy Minister Chris Bowen, is spearheaded by Climate-KIC Australia and the University of Technology Sydney’s Institute for Sustainable Futures (ISF). The VGN aims to accelerate the large-scale adoption of vehicle-to-grid (V2G) bidirectional charging across the country.
The VGN builds on a national roadmap for V2G bidirectional charging, a technology that allows plug-in hybrid (PHEV) and electric vehicle (EV) users to both charge their vehicles and send power back into the electricity grid. This system not only supports the grid but also offers vehicle owners the potential to be compensated for their energy contributions.
Driving Industry Collaboration and Standardization
The announcement comes as the VGN seeks to foster greater industry collaboration and establish uniform standards for equipment compatibility. According to a statement from the University of Technology Sydney, the network will focus on “building sector and consumer capability through trusted information, educational resources, events, and practical tools.”
Funding for the VGN will be provided by the Australian Renewable Energy Agency (ARENA) and RACE for 2030 CRC, an industry-led Cooperative Research Centre established in 2020 with $68.5 million in government funding. Additional support will come from industry bodies, including the Electric Vehicle Council and infrastructure provider JET Charge.
Leadership and Vision
The initiative will be led by Sydney-based Climate-KIC, a climate-innovation initiative, alongside the UTS Institute for Sustainable Futures (ISF), with $1 million in federal government funding. Chris Lee, CEO of Climate-KIC Australia and UTS ISF Industry Professor, emphasized the collaborative nature of the project, stating, “We’re creating the space for industry, government and researchers to share what’s working, make sense of emerging technologies together, and identify opportunities to accelerate bidirectional charging at scale and make EVs a win for people, businesses, and the grid.”
South Australia’s Pioneering Role
Meanwhile, South Australia has become the first jurisdiction in Australia to permit V2G transfer. Starting May 2024, owners of Mitsubishi Outlander PHEV and Eclipse Cross PHEV vehicles will be able to sell power back to SA Power Networks (SAPN). This move marks a significant step forward in integrating renewable energy solutions into everyday life.
Bidirectional chargers play a crucial role in this process by converting alternating current (AC) electricity from the grid to the direct current (DC) electricity required by EV batteries. These chargers can also convert DC back to AC, enabling power to be drawn from the battery and distributed elsewhere, supporting energy-sharing applications such as V2G and vehicle-to-home (V2H).
National Electric Vehicle Strategy and Market Growth
The VGN initiative aligns with the Australian Government’s National Electric Vehicle Strategy, launched in 2023. This strategy aims to increase the supply of affordable and accessible EVs, while also developing the necessary infrastructure to meet rising demand. A key component of the strategy is the New Vehicle Efficiency Standard (NVES), effective from January 2025, which imposes fines on automakers that exceed carbon dioxide emissions limits.
By the end of November 2025, electric, hybrid, and plug-in hybrid vehicles accounted for nearly 30% of new light-car sales in Australia, with electric vehicle market share reaching 8.5% of all new-vehicle sales, its highest level to date.
As the price of EVs continues to decrease, with models like the BYD Atto 1 hatch priced from $23,990 before on-road costs, the accessibility and appeal of electric vehicles are expected to grow. This trend is likely to further enhance the adoption of V2G technologies, positioning Australia as a leader in sustainable energy solutions.
The move represents a significant step towards a more sustainable energy future, with the potential to transform how Australians interact with their vehicles and the national grid. As the VGN progresses, it will be crucial to monitor its impact on both the automotive industry and national energy policies.
