The Ministry of Power has revised its guidelines on EV charging tariffs, leading to a significant reduction in rates for all charge point operators. The new rates for fast charging have been lowered from the previous range of Rs18 to Rs 24 per unit to Rs11.00 per unit during solar hours and Rs 13.00 per unit during non-solar hours.
While these guidelines are not mandatory for private players in the EV charging sector, the Ministry of Power (MoP) has made its intent clear: it aims to lower the cost of EV charging. Although the guidelines are advisory, MoP has also outlined rates for slow charging—set at Rs 3.00 per unit for solar-based charging and Rs 4.00 per unit for non-solar charging.
Through these guidelines, the Ministry is encouraging operators to transition to solar energy, which would not only reduce operational costs but also alleviate pressure on the power grid as EV adoption in India is expected to grow rapidly over the next two to three years.
As part of its initiative to promote solar energy for EV charging and reduce dependence on the grid, the Ministry of Power’s guidelines have introduced a tariff structure that encourages lower rates during solar hours, from 9 a.m. to 4 p.m. The guidelines specify that “the cost of electricity at charging stations will not exceed the Average Cost of Supply until March 2028,” and that tariffs will be reduced during solar hours to promote the use of renewable energy.
In the first half of 2024, EV registrations in India rose by 16% compared to the same period in 2023. EV sales nearly doubled in 2023 and are projected to grow by another 66% in 2024.
By March this year, nearly four million electric vehicles (EVs) had been sold in India, signaling the rapid growth of the market. As EVs are set to become one of the country’s largest power consumers, the focus is shifting towards sustainable energy solutions.
Venugopal Rao Nellutla, an independent consultant with Saera Keto Motors, a provider of EV charging equipment, noted that India’s shift to solar-based EV charging will not only accelerate EV adoption but also lower charging costs for consumers and boost revenue for charge point operators.
India’s public electric vehicle (EV) charging infrastructure grew nearly ninefold, from 1,800 stations in February 2022 to 16,347 by March 2024. However, many analysts believe this pace is insufficient to meet the country’s future EV demands.
As per the Ministry of Power’s guidelines, Distribution Licensees will charge 0.7 times the Average Cost of Supply (ACoS) during solar hours (9:00 AM to 4:00 PM) and 1.3 times ACoS during non-solar hours.
The government is also working to make the installation of EV chargers more feasible. The guidelines propose that government or public entities offer land at subsidized rates to private operators in exchange for a share of the revenue over a 10-year period, calculated based on the electricity consumed at the charging station.
To facilitate the installation of public charging stations, the guidelines recommend that government or public entities offer land at subsidised rates to private operators in exchange for a 10-year revenue share based on electricity consumption at the station.
The latest guidelines prioritize EV adoption by ensuring that charging stations are safe, reliable, and accessible, while also promoting the development of a robust national charging network with a focus on strategically important locations.
According to the guidelines, at least one public charging station must be established within a 1 km x 1 km grid in urban areas. Along highways, charging stations are to be located every 20 km for regular EVs and every 100 km for long-range and heavy-duty vehicles, such as buses and trucks.
Usage of Charging Protocols
As far as technical specifications are concerned, the government has mandated the use of the Open Charge Point Protocol. This will enable real-time monitoring, booking, and payment options, ensuring a consistent and user-friendly experience at charging stations across the nation.
Another common concern regarding charging stations is the lack of available data on their operational status.
To tackle this issue, the Ministry of Power has implemented data-sharing protocols to create a national database of public charging stations. This will enable users to easily find charging points through mobile apps or online platforms.
Furthermore, when Charge Point Operators apply for electricity connections for their EV charging stations, the government mandates that Distribution Companies (Discoms) provide the necessary connections within the timelines set forth in the Electricity (Rights of Consumers) Rules, 2020, as amended.
The maximum period within which the distribution licensee must provide a new connection has been fixed. The government has identified a timeline of a maximum of three days for a metropolitan area, seven days for a municipal area, and 15 days for a rural area.
The guidelines explicitly state that “In the event of a delay in supplying electricity within the timeframe specified by the appropriate Commission, the distribution licensee shall be subject to a penalty as determined by the Commission under the Electricity (Rights of Consumers) Rules, 2020, as amended.”
The Ministry of Power has also directed that the Appropriate Electricity Regulatory Commissioners of various Municipal Corporations conduct an annual assessment of potential EV charging demand across their geographical area to ensure strategic placement of EV Charging Stations. As directed by the Ministry of Power, the State Nodal Agency (SNA) will publish this data for the benefit of Charge Point Operators.
To promote the growth of electric mobility, the Ministry of Housing and Urban Affairs (MoHUA) amended relevant sections of the Model Building Bye-laws (2016) and the Urban and Regional Development Plans Formulation and Implementation Guidelines (URDPFI – 2014).
These amendments take into account evolving charging technologies, EVs with varying charging requirements, and a 20-year vision. Local development authorities are encouraged to implement these changes and allocate adequate space for EV charging stations in new buildings and urban development plans.
Directives for Oil Marketing Companies
The Ministry of Power has directed the OMCs to install public EV charging stations and prominently advertise this on their signage to inform EV owners that EV charging is available at the station.
In terms of payment options, the government has recommended that “flexible payment methods must be offered for public charging stations, potentially with time-based (prepaid/postpaid) payment options, potentially with time-based rates and discounts during solar hours.
The government has also mandated that large public EV charging stations with more than ten EV chargers for four-wheeled vehicles provide additional amenities such as restrooms, drinking water, and covered waiting areas for customers.
The government has mandated public charging stations for long-range EVs and heavy-duty vehicles (such as trucks) to provide fast charging.
The government has mandated that High-power EV Chargers should have at least two EV chargers with a minimum capacity of 240 kW each, conforming to Power Levels 3 or 4, with Liquid Cooled Cables for high- speed charging of vehicles with compatible fluid-cooled batteries (a feature found in some long-range EVs).