The project, which is due to complete in late 2015, unites stationary storage systems and the charging demand of EV fleets at five separate locations across San Diego County.

SDG&E said the assets will be remotely controlled using software that balances the participant’s charging needs, and find new ways to deliver demand response services at the grid level.

The project will also evaluate barriers and best practices for the integration and interaction of dispatchable distributed energy resources with wholesale markets.

SDG&E senior vice president of power supply James Avery said: "This pilot project emphasizes SDG&E’s focus on innovation in the electric vehicle and energy storage sectors.

"There is tremendous potential for dispatchable distributed energy resources to enhance reliability and achieve greater efficiencies. The key to unlocking that potential is to better understand how these resources provide value both at the customer site level and at the larger electric grid level. This project does just that."

CAISO director of regulatory affairs for distributed energy resources Heather Sanders said: "This pilot creates an important connection between actual grid conditions and customer response.

"By having electric vehicles directly participate as a grid resource in the wholesale market, vehicles respond to signals from the grid operator to reduce when electricity is scarce, and continue or resume charging when renewable generation is plentiful."

At present, there are over 13,000 EVs in SDG&E’s service territory, and the California Governor’s zero-emission vehicles (ZEV) Action Plan calls for 1.5 million ZEVs in the state by 2025.