With over 4 Million EVs sold in India, EV adoption is fast approaching the Inflexion point supported by an enabling ecosystem, supportive Government policy, and increased consumer awareness. However, the need of the hour is to improve the pace of this adoption with the support of public and private investments. To reduce charging time and help increase convenience for EV users in terms of mobility and waiting times, Industry body IESA (India Energy Storage Alliance) hosted, the India EV Fast Charging Summit today in New Delhi. India needs investment worth USD 20-30 billion in the EV charging infrastructure to double the segment’s growth pace, industry body IESA said on the summit’s sidelines. The summit also received a demand from industry experts to accelerate EV adoption by increasing public and private sector funding in India’s rapidly growing Fast Charging ecosystem.
President of IESA, Mr. Debi Prasad Dash says, “We all are waiting for the PM e-drive scheme to be floated, which is double the charging infrastructure incentive than the FAME-II scheme. A few of the things the ministry is considering before outing the full scheme include, that they are trying to make it this time state-wise demand allocation, considering the density of the vehicles in different localities in states and cities. The ministry has also tried to consider if any state has its own EV policies and gives incentives to the charging space and others, as well as how they can allocate both state and central government schemes. Hope to see the framework for 2,000 crore coming up soon.” In addition, the government’s MAHA Program under ANRF also has the charging infra as one of the priority areas for enhancing the capabilities of indigenous R&D and innovation in India.
The PM e Drive scheme aims to address range anxiety by promoting the installation of public EV charging stations (EVPCS). Rs 2,000 crore is dedicated to installing 22,100 fast chargers for e-4Ws, 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-2Ws and e-3Ws. However, the increasing number of EVs raises alarming concern for fast charging units, which are still at their nascent stage in India.
Managing Director of CES India, Mr. Vinayak Walimbe stated, “In terms of EVs, I was interested in looking into what kind of investments will lead to as a charging infrastructure. For something like close to 20 billion USD, these are estimates of the US, so we’ll see in India how that will boil down to. But it would require something close to 20 to 50 billion dollars of investments.”
To achieve the vision of 30 per cent EV adoption by 2030, Industry experts also anticipate that the public and private sector will narrow the price gap and make it more affordable. Reducing custom duties, GST and tax on imported EV components while voicing up for local R&D battery technology can further boost local manufacturing and generate employment.
Mr. Awadhesh Jha, Executive Director of GLIDA says, “PM E-drive allocation is very less to accelerate the public charging infrastructure with that money. Those 2000 crores can be invested in upgrading the electricity infrastructure by providing the funds to the distribution company. If the government supports the distribution company, to create the plug and play and give that to the charge point operator, then it will help the sector much better than instead of spending the money and creating the number.”
DISCOMS (distribution companies) play a pivotal role in fostering EV adoption and boosting the energy sector by supplying reliable electricity to the end user. However, high installation costs is still a concern for the industry. To bridge this gap, investments are necessary along with the support of government’s initiatives.
Shiraz Khanna, CFO of Exicom says, “The supply of electricity and uptime of power is not there as much. So the moment we get that infra in place, we upgrade our transformers, we upgrade our grids, we will see how the growth of EV will not only be restricted to the urban areas but the rural areas as well.”
In conclusion, the acceleration of electric vehicle (EV) adoption in India hinges on the collaboration between public and private sectors to enhance charging infrastructure and reduce costs. With over 4 million EVs already on the roads, the demand for efficient and accessible fast charging stations is paramount. Key initiatives like the PM e-Drive scheme aim to address this need, though there are calls for a more strategic investment approach focused on upgrading the existing electricity grid. By investing in reliable power supply and supporting local manufacturing, India can build a sustainable EV ecosystem that promotes widespread adoption, ultimately contributing to the country’s vision of 30% EV adoption by 2030 and fostering economic growth through job creation in the burgeoning EV sector.
About India Energy Storage Alliance (IESA):
India Energy Storage Alliance (IESA) is a leading industry alliance focused on the development of advanced energy storage, green hydrogen, and e-mobility technologies in India. Founded in 2012, by Customized Energy Solutions (CES), IESA’s vision is to make India a global hub for R&D, manufacturing, and adoption of advanced energy storage, e-mobility, and green hydrogen technologies.
The alliance has been at the forefront of efforts seminal in shaping an enabling policy framework for the adoption of energy storage, electric mobility, green hydrogen, and emerging clean technologies in India.
