How the Delhi model for EV chargers is worthy of emulation

News: With advancements in technology, the governments across the world are focusing on the Electric Vehicles. Similarly, Delhi government has adopted a new model for development of public charging infrastructure.

What have been the issues in the EV segment?

There has been a slow pace in setting up large-scale public charging infrastructure or stations.

Central and state governments have failed to leverage the private sector to invest in charging networks. They focus on public sector units (PSUs) to set up the EV infrastructure

What are the different EV Charging Infrastructure Models across the world?

Typically, there are four models: (1) utility-led, (2) automakers-led (with ‘walled gardens’ of chargers), (3) PSU-led and (4) business-led (independent entities offering customers a charging service).

In contrast, the Delhi government has developed a private-public partnership (PPP) model for setting up 500 charging points at 100 locations in Delhi.

What are the aspects that make the ‘Delhi Model’ of EV-charging a novel initiative?

(1) The Delhi government will aggregate land parcels (a scarce resource in Delhi) from different agencies. Thereafter, the land will be given on rent to private players on a concessional basis.

(2) The Delhi government will provide assistance to the cost of upstream electrical infrastructure on the charging site. In addition, the lease rentals will be linked to revenue because the station’s profit is meagre in initial years.

(3) The private sector will be provided the flexibility in determining the charger combinations on 70% of the space in the station. The charging technology evolves with time.

(4) The Delhi government has fixed Service charges for the end consumer as a bidding criterion. Thus, the private bidders will be encouraged to quote a low service charge. Thus, the cost of charging for the users will be just ₹2 per unit, perhaps cheaper than anywhere else in the world.

(5)  Delhi’s EV charging strategy has been based on a participatory approach. All the heads of Delhi government departments, municipal corporations, etc were members of a high-level working group. The group was set up for the accelerated rollout of charging infrastructure. It will lead to coordinated decision-making and implementation of the decision

How can the Delhi Model inform national thinking on EV charging?

On the lines of Delhi Model, all states have been advised by the NITI Aayog that they should form a working group or committee for development of state charging infrastructures.

One the lines of Delhi Model, the Government of India has also recommended: (1) the lease rentals for charging stations should be linked to revenue, and (2) the public funds should be used for augmentation for EV charging stations in the states.

Source: The post is based on an article “How the Delhi model for EV Chargers is worthy of emulation?” published in the Live Mint on 04^th April 2022