What is the Need for Change?

Why EV?

1. Where is India in the Energy Transition

Current Energy Mix:

• As of December 2024, India's total installed electricity generation capacity has reached approximately 462.00 GW, with renewable energy sources forming a critical part of this growth. Coal dominates the energy mix, contributing 47.4% of the installed capacity.
• Renewable energy that includes hydro contributes 209.45 GW, making up approximately 45% of the total capacity.
• Solar energy leads the sector with an installed capacity of 97.87 GW, tapping into the country's vast solar potential.
• Wind energy follows with 48.16 GW, capitalizing on favorable wind conditions along coastal and inland areas.
• As India has high energy dependence on Fossil Fuel based systems, we import a huge portion of fuel for our energy requirement
• While India has its own petroleum reserves, it is not enough to meet our national needs
• India's fuel import bills contribute to a very high degree of the total expenses in the national economy
• This makes the entire economy very sensitive to changes in fuel prices
• All sectors, be it essentials, services or luxury goods have price fluctuations based on this parameter

Progress Achieved:

• India nearing 50% non-fossil fuel power capacity target: India has significantly increased its non-fossil fuel-based generation capacity, with its share rising from 29% in 2015 to 45% in 2024.
• This growth positions the country to achieve its NDC target of 50% non-fossil fuel-based installed capacity well before 2030.
• India's renewable energy (RE) installed capacity has surged from 78 GW in FY 2014–15 to 199 GW in FY 2023–24, driven by a robust policy framework, reduced generation costs and strong investor interest.

Current Challenges:

• India, the world's third-largest oil consumer, is highly dependent on crude oil imports, sourcing over 85% of its requirements from global markets.
• Current hydrogen consumption in India stands at approximately 6 MMTPA.

2. Where Does India Want to Go?

Long-term Vision:

• Achieving net-zero emissions by 2070 is not just an ambitious target—it is a critical call to action, requiring a multi-faceted approach that integrates policy interventions, technological advancements and sectoral reforms.

2030 Targets:

• Under the UN Framework Convention on Climate Change (UNFCCC), countries must develop pathways tailored to their unique circumstances.
• In line with this, India has charted an energy transition roadmap aligned with its economic priorities, aiming to achieve India's 2030 Targets
• The policy envisions 500 GW of renewable energy by 2030, amounting to 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources
• We aim to to achieve Net-zero emissions by 2070, where all energy comes from non polluting sources
• Reducing GDP emissions intensity by 45% from 2005 levels.
• Using technology transfer and low-cost international finance, including Green Climate Fund (GCF) resources to achieve targets.

2047 Vision:

• Projected power demand: 708 GW by 2047. Installed capacity target: 2,100 GW by 2047 (fourfold increase).
• Comprehensive energy framework integrating diversified and sustainable sources.
• CEA Roadmap for 2047: Installed capacity target: 2,053 GW by 2047. 1,200 GW solar and 400+ GW wind energy capacity. Hydro pump storage expansion from 4.7 GW to 116 GW.

Green Hydrogen ($G{H}_2$) Ambitions:

• By 2030, $G{H}_2$ consumption is projected to reach 12 MMTPA, with prices to be approximately US$2-2.5/kg.

3. What is the Transition Plan?

Policy Framework:

• The National Policy on Biofuels, launched in 2018, set a target of 20% ethanol blending in petrol by 2030, with financial incentives for manufacturing capacity and procurement pricing.
• India achieved a 10% blending target ahead of schedule by November 2022, moving the 20% target to 2025-26.

Green Hydrogen Mission:

• National Green Hydrogen Mission Budgetary allocation: Total outlay of INR19,744 crore until FY30.
• Strategic goals: Annual production target of 5 MMT of GH2 by 2030.
• Addition of 125 GW of RE capacity for GH2 production.
• Mobilization of INR 8 lakh crore in investments across the hydrogen value chain.

Energy Storage Strategy:

• With significant future RE capacity additions, the demand for energy storage is projected to grow, with the Central Electricity Authority estimating storage capacity needs of 16.13 GW by 2026-27, rising to 73.93 GW by 2031-32.

Renewable Purchase Obligations:

• The Renewable Purchase Obligation (RPO), introduced under the Electricity Act 2003, has been a key policy tool for accelerating renewable energy adoption, especially for distribution companies, by ensuring energy security and addressing environmental concerns.
• For 2024-25: 29.91% of total energy consumption must come from renewable sources. By 2029-30: the target will rise to 43.33%, reflecting a significant commitment to achieving a greener energy mix.

Grid Modernization:

• The implementation of smart meters in India is poised for significant growth as part of the Revamped Distribution Sector Scheme (RDSS), which aims to improve power supply quality, reduce losses, and enhance energy efficiency.
• The scheme, launched in FY2021-22 with a budget of INR3,03,758 crore, focuses on the widespread installation of smart consumer meters, distribution transformer (DT) meters, and feeder meters across the country.

Coal Flexibilization:

• The 'CEA (Flexible Operation of Coal-Based Thermal Power Generating Units) Regulations, 2023' establish requirements for ensuring the operational flexibility of coal-based power plants.
• These regulations mandate that generating units must operate at reduced power levels, achieving a minimum of 40% of their maximum continuous power rating without oil support, and adapt their ramp rates for load adjustments.

Biofuel Strategy:

• India is advancing its biofuel strategy to reduce emissions, enhance energy security, and integrate the agricultural sector.
• The National Policy on Biofuels aims for a 20% ethanol blend in petrol by 2025-26, supported by government incentives.

Why Improve Tech Further?

There are several compelling reasons why we should continue improving EV technology:

Environmental Benefits

Climate Change Mitigation

• EVs produce zero direct emissions, helping reduce greenhouse gas emissions from the transportation sector, which accounts for about 14-16% of global emissions
• Even accounting for electricity generation, EVs typically have a 50-70% lower carbon footprint than internal combustion engine vehicles over their lifetime
• As the electricity grid becomes cleaner with more renewable energy, EVs become even more environmentally beneficial

Air Quality Improvement

• EVs eliminate local air pollutants like nitrogen oxides, particulate matter, and volatile organic compounds
• This is especially critical in urban areas where air pollution causes significant health problems
• Improved air quality leads to reduced healthcare costs and better quality of life

Economic Advantages

Lower Operating Costs

• Electricity is generally cheaper than gasoline or diesel per mile driven
• EVs have fewer moving parts, requiring less maintenance (no oil changes, fewer brake replacements due to regenerative braking)
• Total cost of ownership is increasingly favoring EVs as battery costs decline

Energy Independence

• Reduces dependence on imported oil, improving energy security
• Electricity can be generated domestically from various sources
• Protects consumers from volatile fossil fuel price fluctuations

Technology Improvements Needed

Battery Technology

• Range: Current EVs need longer range to match consumer expectations and reduce range anxiety
• Charging Speed: Faster charging (15-minute charges for 300+ miles) would make EVs more convenient
• Battery Life: Longer-lasting batteries reduce replacement costs and environmental impact
• Cost: Continued cost reductions make EVs accessible to more consumers

Charging Infrastructure

• More widespread fast-charging networks needed for long-distance travel
• Better charging solutions for apartment dwellers and urban areas
• Grid integration improvements to handle increased electricity demand

Performance Enhancements

• Better cold-weather performance
• Improved efficiency to extend range
• Enhanced software and autonomous driving capabilities

Economic and Industrial Benefits

Job Creation

• Growing EV industry creates new manufacturing jobs
• Opportunities in battery production, charging infrastructure, and software development
• Potential to revitalize automotive manufacturing regions

Innovation Spillovers

• EV technology advances benefit other sectors (grid storage, portable electronics, aerospace)
• Drives innovation in materials science, power electronics, and software

Grid and Energy System Benefits

Grid Stabilization

• Vehicle-to-grid (V2G) technology allows EVs to store and return electricity to the grid
• Helps integrate renewable energy by providing storage during peak generation
• Can provide backup power during outages

Demand Response

• Smart charging can shift electricity demand to off-peak hours
• Reduces need for expensive peak power plants
• Optimizes use of renewable energy

Social and Health Benefits

Noise Reduction

• EVs are much quieter than conventional vehicles, reducing noise pollution
• Particularly beneficial in urban environments

Health Cost Savings

• Reduced air pollution leads to fewer respiratory and cardiovascular diseases
• Lower healthcare costs for society

Strategic Considerations

Global Competitiveness

• Countries that lead in EV technology will have economic advantages
• Important for maintaining automotive industry competitiveness
• Critical for meeting international climate commitments

Future-Proofing

• Many countries are planning to phase out internal combustion engines
• Early investment in EV technology ensures readiness for this transition

Current Limitations to Address

• Charging time: Still slower than refueling
• Initial cost: Higher upfront costs despite lower operating costs
• Battery degradation: Batteries lose capacity over time
• Limited model variety: Fewer options compared to conventional vehicles
• Infrastructure gaps: Charging networks still developing in many areas

Continued improvement in EV technology is essential not just for making electric vehicles better, but for accelerating the global transition away from fossil fuels, improving public health, enhancing energy security, and creating new economic opportunities. The technology is at a tipping point where continued advancement could make EVs superior to conventional vehicles in virtually every metric within the next decade.