GLIDA Lounge

India, like almost every major economy of the world, is working towards a sustainable future where the use of fossil-based vehicular fuels will be significantly less than at present if not completely stopped, so as to minimize overall emission . Electric vehicles (EVs) will thus have a very important role to play. Moreover, with the Government pushing for the growth of solar energy, EVs will also serve to balance the power grid by drawing power from the grid during peak generation hours, storing it in their battery when not running, and transferring it back to the grid when needed. However, despite the obvious benefits they offer, EVs have seen lower uptake than expected. There are several reasons for this, and although the issues of pricing, variety, and range have been addressed to a considerable extent, it is clear that the adoption of EVs in India will be determined mainly by the availability on robust, nationwide charging infrastructure as consumer will like to see the charging stations before being confident of buying EV.  It is very likely that EVs will first be adopted in cities. Unfortunately, most Indian cities are congested, and space is scarce and expensive. Public spaces, therefore, need to be identified across the city and authorized by the government for use by charge-point operators engaged in the business of EV charging. A large network of public charging points will be required in each city to cater to a large EV fleet. Workspace and residential chargers will complement public chargers. A McKinsey report in 2018 had estimated that India will need about five million public charging points at an investment of approximately $6 billion. Most of this investment will have to be made by the private sector. Currently, however, there are no clear policies or guidelines on allocation of parking-cum-charging space for private players. Government intervention will help in addressing this issue. Having said that, the Government of India has taken some important steps over the past couple of years to expand the charging infrastructure network. The first and very significant step was to treat EV charging as a service. On the 13th of April 2018, the Ministry of Power announced that the setting-up of charging stations would be de-licensed. This was a positive move, intended to create a competitive market where any individual or business entity (private or Government) could set up charging stations. The other positive step was to treat “EV Charging Station” as a separate category under Tariff Order by electricity regulators. The expectation that the electricity regulator will determine the tariff for the power supply to EV charging stations in accordance with the Tariff Policy under Electricity Act 2003 will standardize input power cost.   The guidelines issued by the Ministry of Power issued on the 14th of December 2018 for setting up charging infrastructures for EVs were subsequently revised on the 1st of October 2019 after receiving suggestions from various stakeholders. These guidelines bring clarity to the discourse around the charging standards to follow for rapid proliferation of EVs in the country. Additionally, they expect State authorities to undertake State-level planning for identifying potential charging stations and augmenting upstream electricity infrastructure, including distribution transformers, which can then be used by potential CPO (Charge Point Operators) agencies who own and operate EV charging stations. One of the provisions of the guidelines was to create an online database for EV charging stations. This is a very good idea, as this database will help Governments, OEMs of EVs and EVSE (EV supply equipment), CPOs, and DISCOMs optimally plan their respective resources.  The amendment to the Model Building Bye-Laws 2016 by the Ministry of Housing & Urban Affairs is yet another positive step. Having 20 percent of parking space in a building earmarked for EV charging, with a provision of additional electrical load, will pave the way for creating an optimum home/workplace/destination charging network that will complement the public charging network and help the wide-scale adoption of EVs.   However, the guidelines prescribe a cap on the service fee for Government-supported schemes like the Department of Heavy Industries’ ongoing Expression of Interest for setting up EV chargers along highways and expressways. The EV market would have been better served without it, as the cap is neither consumer-friendly nor will it encourage investment. I say this because there is more to EV charging than just supplying electricity to EVs; it is about the consumer experience, which will vary according to types of charger, the location of the chargers, and the time of charging. To cap this will disincentivize operators from investing in the latest technologies. Ultimately, the consumer will suffer. Moreover, regulating the price could distort the market in a unique way. It could happen that a set of charging stations, either within the city or along highways, offer a subsidized price to consumers while another set of chargers by the same operator in the same city offer a different price. Such a situation will bias the consumer mind; they will expect the same price throughout from an operator, which will not be sustainable. On the positive side, however, the guidelines issued by the Ministry of Power, which allow various charger types to be deployed at public charging stations, settled the issue of charging standards. Allowing multi-standard chargers is a well-intentioned recommendation for charging-infrastructure players and OEMs, as it will enable them to launch products according to their choice.  I, too, believe that charging stations should be usable for all kinds of EVs. There is no need to reinvent the wheel. The two globally accepted DC fast-charging standards (CHAdeMO and CCS) can be adopted or adapted for four-wheelers. On the AC front, Type-2 charging can make the charging station completely interoperable. By establishing and adhering to guidelines that are favourable for all EV ecosystem stakeholders, India will take giant strides towards a future of EV mobility.