Understanding the Challenges of Electric Vehicle Charging Infrastructure in India

While electric vehicle charging infrastructure is on the rise, electric vehicle grid modernisation remains a vital issue that has yet to be resolved. Despite an installed electricity generation capacity of 470 GW to date, distribution bottlenecks are still a significant concern. Government support for charging infrastructure exists; however, limited financial resources are being allocated for necessary grid enhancements.

Is India’s Power Grid Ready for Increased Electric Vehicle Demand?

As India accelerates its transition to electric vehicles (EV), the readiness of its power grid for the anticipated increase in demand poses a critical question. The transport sector represents 18% of the total energy consumption in India. As the country shifts towards electric vehicles through initiatives such as PM E-Drive, FAME, and PLI, the challenges facing the power grid will become more prominent as the share of electric vehicles continues to grow.

Current Trends in Electric Vehicle Adoption and Grid Demand

The growth of electric vehicle adoption in India is notable, with 1.96 million EVs registered in FY25, compared to 1.68 million units the previous year. According to the Central Electricity Authority (CEA), electricity usage at public charging points reached 465 GWh between April and October 2024, a sharp increase from just 204 GWh during the 2022-2023 period. Moreover, the CEA projects that the majority of charging will occur at home, resulting in an energy requirement of 4,000 GWh in 2025, rising to 38 TWh by 2032. Consequently, India’s power grid must transition from a linear distribution model to an adaptable, bi-directional, real-time network.

Identifying Grid Vulnerabilities

• Peak Load Stress: India’s grid regularly experiences significant demand spikes during evenings. When electric vehicles are charged during these peak hours, there is a risk of overloading distribution networks, leading to voltage fluctuations and outages. For example, the grid instability incidents in Delhi in 2024 may be partly due to unmonitored EV charging.
• Infrastructure Gaps:
  • Charging Stations: India has only 2,500 public chargers compared to China’s 3.2 million, resulting in a mismatch between demand and supply.
  • Urban-Rural Divide: A staggering 65% of charging infrastructure is concentrated in major urban areas, overlooking rural regions where 65% of India’s population resides.
  • Grid Capacity: Despite the total installed electricity generation capacity of 470 GW, distribution bottlenecks continue to hinder progress. Distribution companies (DISCOMs) require significant funding to upgrade infrastructure to accommodate projected EV loads.
  • Renewable Integration: With electric vehicles predicted to increase demand by multiple TWh by 2030, it is vital to integrate solar and wind energy, or risk transferring emissions from vehicles to coal plants.

Proposed Solutions for Grid Modernisation

Vehicle-To-Grid (V2G) Technology

V2G systems allow the batteries in electric vehicles to function as decentralised storage, returning electricity to the grid during peak demands. Trials in various cities across India show potential for substantial reductions in grid load during peak hours. The successful use of V2G technology in Singapore illustrates its ability to stabilise grids while utilising unused EV batteries for energy storage.

Innovative Charging and Pricing Models

• Time-of-Use (ToU) Tariffs: Many Indian states have implemented ToU tariffs, where electricity prices fluctuate based on demand and are primarily aimed at commercial and industrial customers.
• AI-Driven Load Balancing: Smart grids, such as those developed by Pulse Energy in Maharashtra, leverage machine learning for real-time demand prediction and supply adjustments.
• Solar-Powered Charging Corridors: Electrify America has successfully created 30 solar-powered EV charging stations in California. India also has various state-level initiatives and incentives encouraging the installation of solar-powered charging stations.
• Battery Swapping Networks: Companies like SUN Mobility, Yuma, Baaz, Zeno, and Battery Smart are launching battery swap stations for electric two-wheelers and three-wheelers. These networks can reduce grid load by charging batteries during off-peak times and providing energy back to the grid during peak periods.

Investment and Policy Obstacles

Despite significant advancements and numerous solutions being tested across India, considerable challenges persist:

• Funding Shortfalls: Most governmental incentives and funding focus on consumer demand, providing affordability for electric vehicles. Although support exists for charging infrastructure, minimal financial resources are allocated for grid enhancements.
• Fragmented State Policies: Inconsistent policies exist across states, with leaders like Delhi and Maharashtra offering subsidies while others lag behind, leading to a lack of unified support.
• DISCOM Preparedness: Although progress has been made in smart metering, many DISCOMs still lack sufficient smart metering infrastructure needed for effective load management, hindering the implementation of innovative solutions for grid improvement.

Next Steps for India’s Grid Modernisation

Transforming India’s grid requires meticulous planning and considerable investments in smart metering systems, V2G technology, and rural substations by the year 2030. It is crucial for regulators to require DISCOMs to factor in EV charging loads during demand projections. Public-private partnerships can help scale solar charging opportunities while leveraging corporate social responsibility funds and green bonds.

As noted by Sudhir Kumar of CARE Ratings, distribution upgrades must keep pace with generation growth, or India may see its electric vehicle goals come to a halt. While the increasing number of charging stations signifies advancement, the true test for electrification will reside within grid control centres and policy discussions.

By looking at Amsterdam’s responsive charging infrastructure and Singapore’s V2G strategies, India must focus on strengthening grid resilience to prevent a scenario where electric vehicles flourish at the expense of grid stability.