The Nation Speeding Towards E- Vehicles
Published in May Edition
OAJ: With the Government of India’s announcement of launching 1000 e-buses in Delhi and allocation of 2% to renewable energy in the Budget 2018-2019, could you please highlight the major trends and development that will emerge in the market?
Starting at the lowest public mobility option i.e. Rickshaws, has witnessed a large scale influx of E- Rickshaws in past three years and is currently being more organised with the implementation of license rule.
Apart from this, talking about the fleet cars, the private fleet operations have initiated the initial steps and the Government of India has been supporting the effort by buying the stocks in bulk through Energy Efficiency Services Limited (EESL), thus encouraging the demand for Fleet cars. In the recent times, we have witnessed decline in the prices of E- cars by 30 %, thus leaving space for E-Auto wherein some of the private players are working on the solutions. Apparently the segregation leaves the industry with large segment of E-buses. The Government of India has noticed the gap and hence has proposed to help 100 Cities with E-buses in their initial stages along with descent incentive contribution from the centre. The entire project is estimated to be around Rs. ₹14,000 crore programs wherein 11 cities have been sanctioned a budgetary support of Rs. ₹466 crore for the development. In the future, we will witness major transformation in the E-bus segment. Apart from that the segment will also expand in various new business models. In the first phase of tenders, players have already come up with CAPEX vs OPEX for these E-buses.
OAJ: The emerging e-vehicle market is witnessing creation of a new start up ecosystem in the market, according to you, by can we expect them in the market and also what would be their impact on the market?
Dev : The emergence of Startups for supports and accessories will boost the electric vehicles market whereas the main vehicle will be still driven by the initiatives of Auto Original equipment manufacturer (OEM). We foresee a lot of start – ups and firms emerging in the Electric Vehicle Charger and Battery Technology space along while, the Energy Efficiency Motors and Electronics/IT/ IOT are associated with an Electric Vehicle.
The Electric Vehicle sector will witness new business models such as manufacturing E Vehicle, deploying the vehicles in service, processing the ownership of vehicles, financing the vehicles to finally servicing of the equipment. All the mentioned elements shall build organisations from Start up to large scale companies serving the potential elements of the sector.
OAJ: Renewable energy accounts to 16 % of total India's energy mix, do you think, the percentage share in the overall energy count will increase by 2020? And what number are you expecting?
Dev : According to our estimation, the Renewable energy will be around 20 to 22% of the overall energy mix. Since last one year, the solar energy sector is struggling for various reasons and thus if the issues are resolved sooner, we could see implementation of projects on the larger scale.
OAJ: Which technologies will prevail in the renewable energy industry and how will consumers react to an expanding range of choices provided to them?
Dev : In the Renewable energy space, the Solar and wind sectors will continue to be the most impactful sectors in the long run. The hydro projects will also contribute to the Renewable energy segment. On the technology aspect, the solar and wind both possess mature technology due to which the sector has seen implementation of projects on immense scale. From the consumer aspect, the improvisation in storage technology will definitely boost and revolutionise the renewable energy penetration. The government needs to focus on the pricing which will encourage in developing smart innovations and business model.