Electric vehicles in India to help power utilities earn $11 bn by 2030

The overall electricity demand from EV in India is projected to reach 69.6 terawatt hours (TWh) by 2030, according to Assocham-EY study

New Delhi, June 19, 2018

The overall electric vehicles (EV) demand is expected to help utilities earn an estimated $ 11 billion (Rs 700 billion) in revenue by 2030, according to a study jointly conducted by The Associated Chambers of Commerce and Industry of India (Assocham) and Ernst & Young LLP (EY). The overall electricity demand from EV 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, noted the joint study, titled ‘Electrifying India: building blocks for a sustainable EV ecosystem’.

Increasing adoption of EVs across India will be instrumental in transforming the country’s power sector. The surge in electricity demand from EVs will help recover the slow demand growth, report added.

It also said that arrival of electric mobility is expected to help the P&U (power and utilities) sector realise net cost and revenue benefits from both demand and the supply side. Further highlighting the impact of EVs on Indian power sector, the report noted that it will help the country in achieving carbon emission reduction targets.

“By 2030, EVs are expected to reduce emissions by 40-50 per cent, compared to ICE (internal combustion engine) vehicles in an aggressive renewable energy scenario,” it said.

However, the report added that even if the grid continues to be coal heavy, emissions are likely to reduce by 20-30 per cent.

It also said that power and utilities sector in India is undergoing rapid transformational developments - reducing dependence on imported coal, rising energy independence with renewables, reducing plant load factors (PLFs) and national grid integration to name a few.

The Assocham-EY study suggested for a national regulated rate that can be applicable to all charging stations across India considering that government is in discussion to standardise charging infrastructure development in India, besides many norms are proposed to standardize the market, but they are still in the planning stage. Additionally, 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.