Charging stations

The State Electricity Regulatory Commission will fix the charges for power supply from all the distribution companies to the charging stations at a roof of 15% of the average cost of supply.

For seven months after the announcement of the power ministry, the charging stations for electric vehicles (EVs) will not require a license under the provisions of Electricity Act 2003, the government is thinking of further promoting e-vehicles by opening the opportunities for all the companies to build charging stations without a license.

A senior government official told The Economic Times, "The installation of public charging stations will be de-licensed and any individual is free to set up charging stations, provided the stations meet the standards of the power ministry." 

However, the government has not set any eligibility criteria for opening public charging stations but will be monitored later and have to qualify the specifications and performance norms set by the ministry.

The official said, "The person should apply for connectivity and the distribution company is bound to provide connectivity. After connection, the person will be allowed to obtain electricity from open access."

State Electricity Regulatory Commission (SERC) will decide the charges for supply of electricity from the distribution companies to charging stations at a roof of 15% of the average cost of supply. The tariff imposed by the charging stations from electric vehicle owners will be collected by the State Government.

Alekhya Datta, an area convener of power and fuel department at the Energy & Research Institute said that, service charges of 30-40% over and above notified electricity charges for electric vehicles charging appear to be a viable business proposition for commercial charging stations. 

This development comes even when the corporate country is showing interest in setting up an electric vehicle charging infrastructure. Not only does this list include car manufacturers like Mahindra and Tata Motors, but also there are many giant cab companies like Ola and Uber.

In the meanwhile, the Center is preparing a new policy to promote the Electric Vehicle which would first seek to create a favorable ecosystem in nine cities including Pune, Mumbai, Delhi, Bangalore, and Ahmedabad.

According to the reports, the government will start pilot projects in these cities via Central Public Sector Undertakings (CPSUs) such as NTPC, Indian Oil Corporation, and Power Grid Corporation, and they have decided that a public charging station should be there at every three kilometers. The government has also found 11 busy highways for setting up charging stations at every 25 km.

The official explained, "It has been suggested in the consideration that in the pilot rollout by CPSUs to adapt and manufacture of Hybrid and Electric vehicle in (Fame India - 2) scheme, with the help of some subsidy for fast adoption and the power of electric vehicles demand will help in promoting it." There is also a target of generation of employment opportunities for small entrepreneurs.

Chairman and managing director of Tata Power Delhi Distribution Limited, Praveer Sinha told that, last month the company is planning a partnership with DMRC and Municipal Corporation of Delhi to set up a charging station at metro stations and other potential locations.

According to Praveer, a fast charging station requires an investment of Rs 25 lakhs, but for a slow charging outlet, approximately Rs 1 lakh will be spent. "When Electric Vehicles sale starts in about five years, then around 300 charging stations are required in the 3 km area, which has approx 4-5 charging slots." 

Experts suggest that charging stations can prove to be a very viable business opportunity for individuals. For more updates on charging stations, Stay tuned with us.

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