[ad_1]
India will need about 63,000 charging stations and a cumulative investment of $26,900 million over the next five years to meet the increasing demand for energy in the EV movement. In the next decade, in line with the growth in EV sales, the country could need 0.23 million charging stations, with a total investment of ₹ 1.05 million crore in FY32, a report by India Ratings and Research said. According to government data, there are about 1,000 commercial charging stations in the country in FY22.
The report says that the total demand for electric vehicles (EV) in the country can grow at a CAGR of 39 percent in 10 years.
A number of foreign companies and players have begun to undertake capital expenditures to establish collection infrastructure to capture a share of this growing market.
EV exports for the automotive industry are expected to reach 40% in 2012 from around 4% in FY23. The proliferation of commercial EV charging stations, which provide plug-in chargers on the street, will play a key role in EV penetration.
A typical public charging station, consisting of a 3kwh slow charger, two 20kwh medium chargers, and two 60kwh fast chargers, requires an investment of ₹20,40,000 (3kwh = 10,000, 2x20kwh = 2 lakh and 2x60kwh = 18 million). Other expenses like electricity connection, civil works, land rent (Mumbai rate), and software, the total cost will come out to ₹ 35.5 million. It is estimated that the cost will increase according to the inflation rate as well as the increase in the demand of EV industry.
The growth of charging stations will lead to the growth of charging station manufacturers as well as charging station operators (CSO). The charging station manufacturer will be responsible for providing a complete charging point solution for public and private charging, including hardware and software installation, hardware maintenance and additional support services.
Some of the major charging infrastructure manufacturers are Delta Electronics Inc, ABB India Ltd, Exicom Power Solutions Ltd, and Okaya Power Ltd. CSOs will be responsible for operating the charger network, which includes vehicle charging, customer support, and network solutions (standalone or in collaboration with network providers).
At the same time, the Ministry of Energy has classified electric car charging as a service, so charging station providers will not need a license under the Electricity Act, 2003. Some of the companies that provide CSO services are Energy Efficiency Services, Tata Power,. and Magenta Group.
Lending in priority sectors
NITI Aayog has proposed to categorize loans for purchase of EVs under priority sector lending section. The inclusion of EVs under this category will reduce financing costs and spur demand, thereby increasing EV penetration in India.
Government programs such as FAME and the Connected Manufacturing Program for advanced chemical cells, the government’s focus on expanding electric charging infrastructure, and the continued increase in oil and diesel prices could lead to global growth in the demand for EVs. The rebate through the FAME program aims to promote more EV sales by reducing the TCO (total cost of ownership) of these vehicles.
In addition, the government has also offered funding for the installation of charging stations, which will help adjust Improve EV charging infrastructure in the next 3-5 years.
Posted on December 7, 2022
[ad_2]
Source link
