Electricity demand from EVs to help power utilities earn $11 billion in revenue by 2030

New Delhi: The overall power demand from electric vehicles (EVs) is expected to help utilities earn an estimated $11 billion (Rs 700 billion) in revenues by 2030, said a joint study by Assocham and EY on Thursday. According to the report, the increase in adoption of EVs across India will be instrumental in transforming the country’s power sector. “The surge in electricity demand from EVs will help recover the slow demand growth,” the study said.

As per the report, the overall electricity demand from EVs is projected to be around 79.9-gigawatt hours (GWh) by 2020 and is expected to reach 69.6 terawatt hours (TWh) by 2030. The study noted that arrival of electric mobility is expected to help the P&U (power and utilities) sector realise net cost and revenue benefits from both demand and the supply side. Besides, the report noted that EVs will help in achieving carbon emission reduction targets.

“By 2030, EVs are expected to reduce emissions by 40-50 %, compared to ICE (internal combustion engine) vehicles in an aggressive renewable energy scenario,” the report showed.

However, the report added that even if the grid continues to be coal-heavy emissions are likely to reduce by 20-30%.

It suggested for a national regulated rate that can be applicable to all charging stations across India considering that government is in discussion to standardize charging infrastructure development in India, besides many norms are proposed to standardize the market, but they are still in the planning stage. Additionally, EV charging tariffs are regulated at some locations, while tariffs are not fixed at other locations.

The study also recommended that to meet the rising demand of charging stations the government will have to quickly facilitate standardisation of charging infrastructure for advanced charging technologies.

Power, utilities sector undergoing developments

In addition, the report pointed out that the power and utilities sector in India is undergoing rapid transformational developments like reducing dependence on imported coal, rising energy independence with renewables, reducing plant load factors (PLFs) and national grid integration among others.