TURIN -- Fiat Chrysler Automobiles will set up an experimental fleet of up to 700 electric cars in Europe to test vehicle-to-grid technology, which allows power grids to use energy stored in car batteries to meet demand during peak hours.
FCA signed an agreement with Italy's national grid operator Terna to jointly test a technology enabling electric vehicles to interact with the grid, through charging infrastructure.
The project will include a feasibility study to launch an experimental demonstration fleet of cars connected to the grid via V2G infrastructure to be built in FCA's Mirafioni plant in Turin, the two companies said in a statement on Thursday.
FCA's Europe chief, Pietro Gorlier, said the automaker will start with the 500 electric car.
"The project will kick off in the coming months, we plan to reach 600-700 test vehicles by 2020-21," he said.
FCA will start producing a full-electric version of its 500 minicar in Mirafiori by the second quarter of next year.
Hybrid plug-in versions of the Jeep Compass and Renegade, a new plug-in Alfa Romeo compact SUV, the Tonale, and a mild-hybrid Panda compact car, are also expected in 2020.
FCA is taking its first steps into electric mobility as the automaker moves on from its failed $35 billion bid to merge with Renault, a pioneer in electric vehicles.