The head of energy infrastructure solutions provider Delta Electronics believes that charge-point operators must be facilitated with measures to keep capital costs low.
Charging infrastructure is extremely critical to ensure the healthy offtake and success of electric vehicles which have started to grab the attention of the Indian customer looking to buy either an electric vehicle on two or four wheels. A number of private EV charging infrastructure providers have swung into action to support the EV OEMs' endeavour of charging ahead with the sales of their radical, futuristic electric vehicles, and are now seeking the government's support to accelerate their network establishment and ensure a better viability of the busines model.
According to Amit Gupta, head, Energy Infrastructure Solutions, Delta Electronics India, "Delta firmly believes that the Union Budget 2023–24, which will be unveiled at a pivotal time of geopolitical unpredictability, high inflation, and sluggish global economic growth, will aid the EV industry in moving forward and accelerating the adoption of EVs.
"E-mobility will advance in India as a result of newly announced government measures to improve the infrastructure for charging. Grid connectivity will be improved, and installing infrastructure for public charging will be made simpler. However, the part needs a bigger push. The industry needs more assistance to encourage private enterprises to build charging infrastructure, which will facilitate the widespread adoption of EVs," he added.
The company's advanced EV charging solution offerings aims to enable the ecosystem to keep pace with the growing demands for a robust electric automobile infrastructure.
Gupta further mentioned that infrastructure for charging requires capital-intensive design and installation costs, and the sector's top aim is to keep capital costs as low as feasible. "The proper course of action for making it easier to install charging infrastructure is to facilitate grid connectivity, but it is crucial for the sector that the government also subsidises electrical connections and fixed load fees for EV charging point operators," Gupta said.
"The government has encouraged the use of charging stations by setting the GST at 5% on the sale of charging stations, but the GST rate is 18% when using the infrastructure. Given that many people utilize these charging stations and do not qualify for an input tax credit, the government must reduce this GST to 0%, just like it does with the sale of energy," he added.
Gupta also suggested a three-pronged strategy for giving an impetus to the charging infrastructure space. His recommendations to the government included:
Making low-cost renewable energy available
The transition from expensive fossil fuel-based power generation to affordable renewable energy will aid in making EV transportation really viable. By supporting strategies like open access to solar energy, it will be possible to increase the supply of RE electricity while lowering operational costs.
Installing EV charging infrastructure requires significant investment. The industry can be made more profitable in a number of ways, including by enhancing promotion, introducing smart charging services, and investigating network interoperability to lower latency, increase revenues, and lower expenses.
Make charging stations a part of green building
India is putting an emphasis on smart cities and green construction. The proper charging infrastructure is crucial for both new green real estate projects and existing real estate including industrial, commercial, and residential complexes.
"All these measures will promote sectoral growth and open up opportunities for the industry to generate income," Gupta signed off.
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