Electrifying mobility in India

 Background:-

Electric vehicles (EVs) are growing in popularity and certainly in mind space. They are cleaner and more efficient, easy to maintain and there is an advantage of regenerative braking. On the whole it is a package to fight against climate change and global warming as green house gas emissions are reduced.
Recent targets by NITI Aayog indicate 40% of personal vehicles and public transportation in the country should go completely electric by 2030.

Government Initiatives:-

• The government has asked auto companies to start manufacturing electric vehicles in India, and is also studying global markets to come up with a policy surrounding electric mobility and storage.
• The Government started Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME)scheme which provides incentives for purchasing electric vehicle.
• Government is releasing tenders to increase charging infrastructure in the country. India will get its very first electric vehicle charging station in Nagpur.
• Karnataka state approved Electric Vehicle and Energy Storage Policy 2017.
• BS (Bharat Stage) protocol for Charging was formed to build the framework for future charging stations.

Boost to electric vehicles:
India proposed to liberalize the permit system for electric vehicles to promote alternative fuels. It suggested raising the tax on diesel vehicles by 2% while lowering the tax on electric vehicles.

Problems with current model and why precautions need to be taken:-

Most worries hinge on battery costs and manufacturer readiness. Also at current the electric vehicles take longer time to charge than conventional vehicles.

EV battery production:

• India does not produce lithium-ion (Li-ion) batteries currently, and companies making battery packs are dependent exclusively on imports from China.
• This is a cost-saving strategy as setting up a cell manufacturing unit in India would be expensive.
• But, accelerating EV use in India should be linked to the “Make in India” goal and domestic battery production.
• A more India-specific concern will be that of the electricity gridas there are doubts when it can successfully handle the demand.
• India needs to focus on ecosystem EV because the present system does not help environment as most power comes from coal-fired power Will use solar photovoltaics (PV) to charge EVs.This means that Renewable energy may at best contribute some fraction of energy at different times but with personal vehicles and public transport mostly charged at night solar energy advantage as an alternative is constrained.

International experiences:-

There have been some concerns about previous experiences in China and Israel. But these models were meant for personal cars andwere costly. Besides, lack of marketing, proper execution and mismanagement led to the failure of the promising EV start-up in Israel Better Place. The subsidy structure also became distorted, favouring large batteries.
Policies have to be developed to facilitate the indigenization of battery assembly, and manufacture of EVs and their basic components. Currently, there are distortions with the goods and services tax (GST). The GST rate on batteries is 28%, while it is 12% for electric vehicles.

Coordination among various stakeholders:

EVs, unlike ICE vehicles, involve several actors at the national, State and city levels, respectively
Multiple ministries such as Road Transport and Highways, Housing and Urban Affairs, Heavy Industries, Power, New and Renewable Energy, External Affairs as well as national institutes such as NITI Aayog should work together.
State and city-level players need to be involved so as to address several technical and infrastructural needs.

Charging infrastructure:
Charging infrastructure for electric vehicles in India has not been fully developed yet.
EV charging is more than just using electricity. It involves exchange of informationrequiring a communication protocol.
The absence of a standard global infrastructure is a major deterrent for EV penetration in India, as creating infrastructure can be cost-intensive.
The government needs to select or develop appropriate and safe charging technology that avoids multiplicity and reduces the cost of infrastructure.

What more needs to be done?

• EVs and the grid can have enormous synergy.
• Not only can EVs charge whenever there is “surplus” power, they have a battery useful for absorbing variable renewable energy. They can even offer backup power for the grid.Time-of-day pricing(cheap charging when power is surplus)is missing today. Without this, India cannot have signalling to purposely make demand vary to match supply conditions. Such responsiveness is a hallmark of the “future grid”
• EVs can and should use Renewable energy as much as possible as it helps in cleaning the environment.
• India could compensate cleaner vehicles through reduced registration charges, or even aim for mandating EVs for taxis and selected (urban) public transport vehicles.
• There are other ways to spur EVs, including dedicated charging spots, and discounted or free parking.
• The long-run goal isn’t just to make vehicles electric but to reduce personal driving. This means urban redesign for walking/biking, more shared services, and more and better public transport
• The government mainly needs to create the right frameworks and help overcome “network effect” problems, covering both the grid and charging infrastructure.
• To meet India’s demands for batteries amid a global surge in electric vehicle demand, the entire mineral supply chain needs to be overhauled and expanded
  In order to avoid a scenario like the one that played during the oil crises of the 1970s it is imperative that India secure mineral supplies for its domestic industry by acquisition of overseas assets such as mineral reserves and the associated production.
• India has long-term trade relations with lithium-producing countries in Latin America through preferential trade agreements (PTAs).
• India needs to formulate policies incentivising domestic public and private mining companies to invest in overseas lithium mining assets.
• Reducing the battery size and adopting “swappable” battery technology are other alternatives
• India does need to have a low-emission vehicle policy, one that surrounds alternative energy sources such as bio-gas and bio-diesel.
• Because hybrids are a mesh of existing and future technologiesand do not require the establishment of charging infrastructure, although popularising plug-in hybrids that can be charged both from their own engines and the grid, will actually help in the gradual seeding of such infrastructure before a shift to electric vehicles.
• Focus on wireless rangingas it allows for significantly smaller batteries or the ability to travel longer distances with a larger battery.
• Efficiency in terms of total cost per kilometre, not capital costs or larger batteries, should be incentivized
  Ideally, the best course would be to select five smart cities with the objective of fully electrifying their public transportation as well as 50% of their two-wheelers by 2025.

Figuring out the best mode forward:

Different countries have different approaches to increase the EV penetration.For example China has focussed on Electric busesas catalyst for EV penetration.
On the other hand, Netherlands has captured the EV market using a simple yet well-crafted strategy of creating charging infrastructureand encouraging investment in charging technology. It’s a major exporter of this technology too.
Hence, the impact on employment in the wake of shift to Electric vehicles needs to be thoroughly studied. Bold initiatives and robust investments in technological research are required to turn its EV dream into reality.

Conclusion:-

When India is focusing on reaching the targets on the Paris agreement and striving for cleaner environment the focus on electrical vehicles is the right direction.

By: SONAM SHEORAN