A joint study carried out by industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Ernst & Young LLP (EY) has stated that India’s overall electricity demand from the mass adoption of electric vehicles (EVs) may reach to 69.6 terawatt hours (TWh) by the year 2030. This will help power utilities to earn extra revenue of $11 billion. It noted that increase in adoption of EVs will be instrumental in transforming India’s power sector and reduce emissions by 40-50%, helping the country in achieving carbon emission reduction targets. However, it said that even if the grid continues to be coal-heavy, emissions are likely to reduce by 20-30%.
The study 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. Besides, it suggested that 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.
The ASSOCHAM-EY study expected that the government to take active measures to streamline regulatory challenges and provide further policy impetus to drive uptake of EVs. It stated that while success of the country’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. It added that clear policy guidelines are essential for EV market to take-off, given the huge capital investments involved.
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