Electric Vehicles: Power utilities to earn $11 billion in revenue with EV demand, says report

Electric Vehicles: Power utilities to earn billion in revenue with EV demand, says report

The overall electricity demand from electric vehicles (EVs) in India is projected to be around 79.9 gigawatt hours (GWh) by 2020, and is expected to reach 69.6 terawatt hours (TWh) by 2030. The overall EV demand is expected to help power utilities earn an estimated $11 billion (`70,000 crore) in revenue by 2030, said a report done by Assocham. The report has been prepared in association with Ernst & Young.
Titled ‘Electrifying India: Building blocks for a sustainable EV ecosystem’, the report said increasing adoption of EVs will be instrumental in transforming the country’s power sector. The surge in electricity demand from EVs will help recover the slow demand growth.

Highlighting the impact of EVs on Indian power sector, the report noted that it will help the country achieve carbon emission reduction targets. By 2030, EVs are expected to reduce emissions by 40-50%, compared to ICE (internal combustion engine) vehicles in an aggressive renewable energy scenario.

However, the report said even if the grid continues to be coal heavy, emissions are likely to reduce by 20-30%.

It also said the power and utilities sector is undergoing rapid transformational developments such as reduced dependence on imported coal, rising energy independence with renewables, reduced plant load factors (PLFs) and the national grid integration.

According to the report, a national regulated rate can be applicable to all charging stations across India as the government is in discussion to standardise the charging infrastructure development. Many norms are being proposed to standardise the market, but they are still in the planning stage. Besides, EV charging tariffs are regulated at some locations, while tariffs are not fixed at other locations.

It is also recommended that in order to meet the rising demand of charging stations, the government will have to quickly facilitate standardisation of charging infrastructure and incentivise R&D for advanced charging technologies. It is expected that the government will take active measures to streamline regulatory challenges and provide further policy impetus to drive uptake of EVs.

Source: Financial Express