Govt planning liberal norms for electric vehicle charging stations

Govt planning liberal norms for electric vehicle charging stations

Context

• Government is set to put in place liberal rules for charging stations to power electric vehicles, seeking to facilitate rapid expansion of the infrastructure needed to support its ambition of an all-electric fleet on Indian roads by 2030.

Liberal proposal

• The norms under preparation will not require government and private institutions that set up charging stations for captive use to possess an electricity retailing licence.
• Only entities that get into the business of charging stations and retail electricity to third-party vehicles will require such a licence,
• The Central Electricity Regulatory Commission is working on these norms.

Impact

• To accelerate the expansion of the use of electric vehicles, which could bring economies of scale and could push prices down.
  

About the scheme

• The government is now procuring 10,000 electric vehicles, the competitive bids for which resulted in a 25% reduction in the price of the contracted vehicles from their prevailing market price.
• Energy Efficiency Services Ltd (EESL), which is procuring these vehicles, follows a business model of making upfront investments in energy-efficient equipment, which it recovers from customers over a period from the savings they make in energy consumption.
• In the case of government vehicles (which EESL is procuring), charging stations are used for captive consumption of electricity. There is no sale of electricity. Hence it is a good idea not to require such infrastructure to have a power distribution licence.
• India has set a target of making a complete shift to electric mobility by 2030.

What is electric vehicle?

• The electric car (also known as electric vehicle or EV) uses energy stored in its rechargeable batteries, which are recharged by common household electricity.
• An n electric car is powered by an electric motor instead of a gasoline engine
• Unlike a hybrid car—which is fueled by gasoline and uses a battery and motor to improve efficiency—an electric car is powered exclusively by electricity.

Advantages of electric vehicle

environment

• It will help India to achieve its  climate change goal of reducing the carbon emissions intensity of its gross domestic product by 33-35% by 2030 from 2005 levels.
• Reduce noise pollution in the cities

Economy

• It will cut India’s oil imports vis-a-vis current account deficit.
• Expected to boost electricity demand, helping underutilized thermal power plants as well as the surging number of clean energy projects in the country.
• Electric cars are low maintenance.

Disadvantage

• Recharge point are yet to be setup.
• Short driving range and speed
• India already faces a power shortage.

Why electric cars are not successful in india?

• Lacking infrastructure such as charging point
• High cost of electric vehicle
• People mindset and stereotype like electric vehicle do not make noise so it is not good