Overcoming Challenges & Embracing Opportunities For A Green India
The popularity of electric vehicles (EVs) in India, particularly in the two and three-wheeler segment, is on the rise. In May 2023, electric two-wheeler sales crossed the 100,000-unit mark, reaching an impressive high of 104,829 units. This milestone has been achieved through the combined efforts of the industry, Central and State governments. The FAME- II scheme of MHI has played a crucial role in encouraging EV sales, and various State governments have also implemented supportive EV policies. Over 20 states have drafted or notified EV policies that focus on incentives to stimulate the EV ecosystem including demand generation, EV manufacturing and investment incentives, infrastructure creation, and R&D investments. This certainly has instilled hope and created positive momentum towards achieving the ambitious targets of 30 per cent EV penetration in India by 2030.
EVs would play a key role in making our transport green and reducing greenhouse emissions towards the same. However, a Climate Trends and JMK Research report indicates that India needs to establish at least 2.05 million and 3.9 million charging stations to support 50 million and 80 million EVs on the road by 2030, respectively. In contrast, as of March 21, 2023, India only has 6,586 operational Public Charging Stations (PCS). This translates to a mere 0.001 PCS per kilometer of motorable roads in India. To put this into perspective, there are approximately 0.01 petrol pumps per kilometer, making charging infrastructure a significant obstacle to the widespread adoption of electric vehicles, especially of electric cars and other long-range transport vehicles like buses and commercial vehicles.
India’s electrification journey has kicked off with electric 2-wheelers, 3-wheelers and city buses. This is a very significant and strategic aspect of India’s e-mobility journey which we must consider because it has significant implications.
For several reasons, this is a very pragmatic and effective way to promote e-mobility in our country. 80 per cent of India’s transport sector consists of 2W, 3W and buses. These are the means of daily commute for the majority of our population or as they call, our masses. So, unlike the West, where most people commute in cars, in India, cars are used by a much smaller section of our population. Thus, Indian Government has shown great vision in promoting “green mobility for the masses” and focusing on rapid electrification of 2W, 3W and buses, as an India-specific strategy, as opposed to simply copying the West or the developed nations. I truly believe that if India wants to experience the benefits of e-mobility, by way of reduced pollution through mass deployment of EVs and reduced transport cost for its people, this is the way to go!
This also has great implications when it comes to the creation of charging infrastructure. Since 2W, 3W and buses are primarily used for intra-city transport or the last mile (and not inter-city movement), OEMs can provide enough energy on board or range in the EVs that meet the commuter's daily duty cycle. Thus, people can use their E2W all day and charge their vehicle at home in the evenings; like we charge our mobile phones after a day’s usage! The same is the case with E3W and e-buses, they can be charged at home or at the depots or garages after the day’s duty cycle. This means that in India, we don’t face the typical “chicken or egg” meaning “EV first or charging infra first” dilemma and we can begin or rather have begun mass deployment of E2W, E3W and 3 buses without having created a massive public charging infrastructure, especially on highways etc. Even in the case of electric cars, India has begun adopting electric cars as city-taxis by fleet aggregators or as “second car” in urban cities. Typically, these also are used intra-city and can be charged at home.
So, does this mean that India does not need a charging infrastructure for mass deployment of EVs? No, it does not. But what this means is that we can start rapid electrification of our transport sector through aggressively promoting E2W, E3W, and e-buses in our cities in the first phase, say the next 2-3 years; while in parallel putting in place the charging infrastructure required for the second phase, which will include rapid growth of electric cars, or commercial vehicles, or for deep penetration of E2W or small cars with availability of convenience or top up charging at many points in a city.
The primary challenge in building infrastructure for electric mobility in India lies in the lack of expertise in effectively allocating resources. Although the government has taken steps to incentivise EV manufacturers and buyers, the complexity of developing the necessary infrastructure for widespread EV adoption persists. Let’s explore key aspects that demand attention to improve the charging infrastructure significantly. We will also examine the steps being taken in this direction.
Acquiring Infrastructure for Charging Stations:
A significant challenge lies in bridging the infrastructure gap between urban and rural areas. Urban areas face obstacles such as high land costs, limited availability of space, and inadequate power supply required for fast-charging stations. Conversely, rural areas encounter challenges such as poor network connectivity and limited awareness of the benefits of EVs compared to conventional fuels.
To tackle these issues, the Ministry of Power, Government of India, has made land available to government/public entities for charging infrastructure at a fixed rate of INR 1/kWh. Distribution companies (DISCOMs) are also mandated to provide connections for Public Charging Infrastructure within specified timelines: 7 days in metro cities, 15 days in other municipal areas, and 30 days in rural areas.
Getting required permissions and support for setting up and operating charging stations:
Despite EV-friendly policies in place, the actual process of setting up and commissioning an EV charging station is painfully cumbersome and slow in most states. Getting required permissions takes weeks and months, and there are too many doors to knock, and papers to file; far from what it should be- “a single window” clearance!
Promised concessional EV charging tariffs remain only a dream as the required systems are not in place. The possibility of a “well-to-wheel” green EV, with the use of solar EV charging stations, is also currently a pipedream.
Our various ministries have to come together, and systems need to be put in place to make setting up of EV charging or battery swapping stations an efficient process, with possibilities of concessional tariffs and integration with green energy sources or grid to make our EV truly green!
Forging Partnerships for Accelerated Progress and Utilisation of Existing Infrastructure:
Since acquiring land and establishing new charging stations is time-consuming, the government has started utilising existing infrastructure with uninterrupted power supply, such as metro stations and railway stations, to build charging stations. This approach optimises urban space and provides easily accessible charging spots for both urban and rural EV users.
Real estate developers have also prioritised setting up charging stations for residential and commercial projects. They are collaborating with energy companies to offer the best-suitable charging facility to their customers.
However, due to the lower EV population, many charging stations are currently unviable and run the risk of closure or obsolescence. The only solution for keeping the charging stations from closure, is some sort of “early bird” subsidy for the next 2-3 years, to make the setup as less investment heavy as possible and encourage players from making the investments. Another alternative would be for the Government to directly invest in the creation of charging infrastructure through PSUs or through some Public-private partnership models.
To expedite the adoption of EVs and develop supportive infrastructure, the Indian government is launching schemes and initiatives that promote partnership-based development. As part of the FAME-II scheme, the government has allocated INR 800 crore to oil companies to establish over 7,000 charging stations nationwide. Likewise, electric vehicle manufacturers are collaborating with energy companies to create their network of public charging stations. These partnerships are instilling customer trust in EVs by providing vehicles along with charging solutions.
Transitioning to Renewable Energy
While the EV revolution embodies India's goal of achieving net-zero carbon emissions, it currently relies on fossil fuel-based power sources. Thus, it is imperative to establish a complete green production-to-power cycle to support the EV mission. Original equipment manufacturers (OEMs) are working towards sustainable production models, and the government is building renewable energy production facilities to shift India's power generation to carbon-neutral sources.
The Indian government has established solar parks and other renewable energy generation sources and boasts two of the world's top three solar parks. Thus, by aligning the EV adoption target with appropriate policies, technology advancements, and innovation, India can achieve a completely green production-to-power system.
In conclusion, the Indian government needs to actively set up a multi-ministerial task force to work in collaboration with the EV industry stakeholders, to work towards planning and building the necessary charging infrastructure for electric mobility. This can be done in a phase-wise manner over the next 5 years to ensure that we have the necessary inter-city charging infrastructure in place for the promotion of electric cars and other commercial vehicles; and for the creation of easily accessible convenience charging points in our cities.
We certainly have well begun, but nowhere close to being half done! Collectively, we all need to work so that the country can achieve its goals of reducing carbon emissions and embracing a sustainable future of transportation.
