The overall electricity demand from large-scale adoption of electric vehicles (EVs) in India is projected to touch 69.6 terawatt hours by 2030, helping power utilities earn an additional revenue of USD 11 billion, a report said today.
The joint study by Assocham and Ernst & Young LLP added that increasing adoption of EVs across India will be instrumental in transforming the country’s power sector and reduce emissions by 40-50 per cent, helping the country in achieving carbon emission reduction targets.
Moreover, it said, the mass adoption of electric mobility is expected to help the power and utilities sector realise net cost and revenue benefits from both demand and supply side.
“By 2030, EVs are expected to reduce emissions by 40-50 per cent, compared to internal combustion engine vehicles in an aggressive renewable energy scenario,” the study 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.
The report highlighted rapid transformation underway in the country’s power and utilities sector via reducing the dependence on imported coal, rising energy independence with renewables, reducing plant load factors and national grid integration.
It suggested a national regulated rate that can be applicable to all charging stations across India, observing that the government will have to quickly facilitate standardisation of charging infrastructure and incentivise R&D for advanced charging technologies.
“We expect the government to take active measures to streamline regulatory challenges and provide further policy impetus to drive uptake of EVs,” noted the report.
It also said that while success of India’s EV mission depends upon development and proliferation of domestic manufacturing ecosystem, absence of an EV supply chain in the country demands an urgent investment in research and development and local manufacturing capabilities.
The report also noted that clear policy guidelines are essential for EV market to take-off, given the huge capital investments involved.