In India, the major consumer of the crude oil is the transportation sector. It consumes about one third of the total production. To reduce the dependability on the fossil fuels the Central Government has launched the National Electric Mobility Mission Plan (NEMMP) 2020 in the year 2013, which aims to promote hybrid and electric vehicles in the country.
Another step taken by the Central Government for incentivising the electric vehicles is the Faster Adoption and Manufacturing of Electric Vehicles Scheme(FAME Scheme). For overall development and adoption of EV’s, it is necessary to create enabling framework of EV Charging Stations. This EV Charging business involves sale and supply of electricity.
The Electricity Act, 2003 gives guidelines that are required to maintain an infrastructure that connects the grid for sourcing the supply of energy and thus maintain an electricity system. The act classifies the infrastructures as “electricity line”, “electricity system”, “works” or “supply” based on the joint readings of the statutory provisions. The trading licensee may be permitted to establish the EV charging station under given framework. A Non-licensee can also distribute the electricity but for that he needs to have a franchise agreement with a distribution licensee. In this case the distribution licensee will remain responsible for the supply of power.
The Electricity Amendment Bill, 2014 does not allow the retail sale of power by the non-licensee and thus requires certain revisions to provide a statutory framework for EV and charging infrastructure. At present the legal framework limits the EV’s to operate at a mass scale. Through appropriate amendments in the electricity act would allow the the intermediary EV charging station operators to supply electricity to EV owners.
By 2040, India is predicted to rank third in terms of electric car fleet as per World Energy Outlook, 2017.
Source: First Post