Power utilities to earn $11 billion from power demand of Electric Vehicles
India is all set to adopt large number of electric vehicles (EVs) by 2030. A joint study by Assocham and Ernst & Young LLP suggested that the overall electricity demand from large-scale adoption of electric vehicles (EVs) in India is projected to touch 69.6 terawatt hours by 2030.
India is all set to adopt large number of electric vehicles (EVs) by 2030. A joint study by Assocham and Ernst & Young LLP suggested that 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 $11 billion
The report also 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. This will help the country to achieve carbon emission reduction targets.
Further, this mass adoption of EVs is expected to help the power and utilities sector realise net cost and revenue benefits from both demand and supply side, reports PTI.
"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, adding that even if the grid continues to be coal-heavy, emissions are likely to reduce by 20-30 per cent.
The study also highlighted that the 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.
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According to the report, the study 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," the report stated.
As per the report, the success of India's EV mission depends upon development and proliferation of domestic manufacturing ecosystem. The absence of the electric vehicle chain in India requires an immediate investment in research and development and local manufacturing capabilities. It further said that, given the huge amount of capital investment involved, a clear policy guidelines are essential for EV market to take-off.