OPINION: National charging strategy must for India’s EV transition – EQ Mag Pro

A blueprint that goes beyond allocation of funds and focuses on institutional mechanisms, regulatory reforms and business model flexibility.

New Delhi: On June 25, 2021, the Department of Heavy Industries extended the Faster Adoption and Manufacturing of Electric Vehicles Phase 2 (FAME-II) programme, up to March 2024. FAME-II had earmarked an impressive Rs 1,000 crore for the development of electric vehicle (EV) charging infrastructure in India.

However, despite two Expression of Interests (EOI) in the last two years, which targeted the deployment of close to 4,400 charging stations in cities and on highways, there has hardly been any utilisation of funds or any installation of chargers.

The last two years of FAME-II have highlighted the challenges for deployment of charging infrastructure and the need for a national blueprint that goes beyond allocation of funds. India needs a national strategy for the deployment of EV charging infrastructure vis-à-vis critical aspects such as the role envisaged for the private sector, development of charging standards, solutions to common regulatory issues, streamlining of implementation issues, and delineating the role of local bodies and distribution companies (discoms).

It should also lay down well-defined targets with clear timelines, provide frameworks for determining geographical distribution of charging stations, and suggest fiscal measures that accelerate the setting up of such infrastructure.

The national strategy must also identify the training needs at local level and institutional reforms. For instance, the Department of Energy in the USA had recently announced a national EV charging technical blueprint which would assess needs in terms of connectivity, communication, protocols and government fleet transition.

A central government programme like FAME-II must be informed by this national strategy. It should be developed based on the learnings of states and cities which have been at the forefront of deploying EV charging infrastructure in the last two years. Some key learnings from a few leading Indian states and cities will offer insights into the strategy.

Inter-agency coordination at the city and state levels is critical

The deployment of EV charging stations requires the power and transport departments, and the discoms to work in tandem. Also, land, which is one of the most critical elements of charging deployment, follows a complex and multi-agency ownership pattern. The end-to-end deployment requires all these agencies to work in coordination.

It will be critical for the national strategy to suggest a framework for interagency coordination to ensure effective/efficient deployment of charging stations. Delhi provides a good example of such an interdepartmental body.

A Working Group (WG) has been formed to implement a coordinated strategy for Delhi EV charging infrastructure. It comprises the Dialogue and Development Commission of Delhi (DDC) —the Union Territory’s think tank, the transport and power departments, the state nodal agency for EV charging, all the discoms and municipal corporations of Delhi, and Energy Efficiency Services Limited (EESL). The WG has been spearheading the implementation of all aspects related to Delhi’s EV charging.

Provide flexibility in choosing priority vehicle segments and charging use cases

EV charging is a function of vehicle segment and dwell time patterns. Therefore, identifying use cases and determining priority vehicle segments form the bedrock of determining a city’s EV charging plan. So, cities such as Delhi and Mumbai may prioritise two and three-wheeler segments and focus on widespread installation of light EV chargers.

But a city like Shimla may prioritise cars and therefore the deployment of fast-charging stations. Similarly, a city with less access to private parking space may prioritise public EV charging stations more than a city where residents largely have this facility. The national strategy should provide flexibility to cities to identify and prioritise vehicle segments and charging use cases that they aim to promote under programmes like FAME-II.

Supporting business model flexibility and viability

Technical feasibility and economic viability of charging stations are site-specific. They determine the type of chargers and their optimal combinations. It is, therefore, important that government tenders provide maximum flexibility to charging station operators in determining their business model, ergo the best combination of EV chargers at a specific site or allowing for additional revenue streams such as advertisements from the charging stations. In contrast, the EOI for installation of charging stations in cities is bereft of this flexibility and mandates a fixed number of chargers and at least a fast one at each location.

Incentives to improve the operational viability of charging stations must go beyond subsidising chargers and extend to other major costs associated with building the infrastructure. The tender for Delhi EV charging stations and the Maharashtra EV policy provides for defraying the costs associated with land and upstream electrical infrastructure which form a major chunk of the fixed and operating costs.

These subsidies must be provided upfront to the charging station operator and not as a reimbursable cost. Any delay in these reimbursements can prove detrimental to a business in its nascent stage. The national strategy should consider providing these incentives in coordination with states.

In conclusion, while providing incentives for charging infrastructure deployment under FAME-II indeed signals intent, a national strategy is crucial for signifying consistency, bridging the knowledge deficit of local implementing agencies, sharing best practices from across the country, delineating the potential roles of different stakeholders in deploying EV charging stations, and chalking out a unified direction towards achieving India’s ambitious EV transition targets.

Such a strategy would be evolving in nature. However, until a clear national vision is laid for deploying EV charging stations, approaches will continue to be piecemeal, and India’s ambitious targets will falter. With multiple states finally joining the EV bandwagon with recently notified progressive policies, now is the right time to converge state-specific intent and best practices to formulate a national strategy.

Source: ETEnergyWorld