All Electric Passenger Vehicle Sales in India by 2030: Value proposition to Electric Utilities, Government, and Vehicle Owners

Abstract

Author(s): Abhyankar, Nikit; Gopal, Anand R.; Sheppard, Colin; Park, Won Young; Phadke, Amol A. | Abstract: In India, there is growing interest among policymakers, planners, and regulators for aggressive electrification of passenger vehicles. For example, Piyush Goyal, the Minister of State for India’s Ministry of Coal, Power, New and Renewable Energy, announced an aspirational goal of converting all vehicle sales in India to battery electric vehicles (BEVs) by 2030 (Economic Times, 2016). In 2012, India has already announced the National Mission on Electric Mobility (NMEM) sets a countrywide goal of deploying 6 to 7 million hybrid and electric vehicles (EVs) by 2020 (DHI, 2012). A major policy motivation for transport electrification is to reduce India’s oil import dependency. The objective of this paper is to assess the effect of full electrification of vehicle sales in India by 2030 on the key stakeholders such as BEV owners, electric utilities, and the government. Specifically, we attempt to answer the following questions: (a) How does the total vehicle ownership cost of BEVs compare with the conventional vehicles? (b) What is the additional load due BEV charging? (c) What is the impact on the power sector investments, costs, and utility revenue? (d) How can smart BEV charging help renewable energy grid integration? (e) What is the impact on the crude oil imports? (f) What is the impact on the greenhouse gas (GHG) emissions?