Chapter 7.1 - Total cost of ownership analysis of fuel cell electric vehicles in India

Abstract

India is one of the largest importers of fossil fuels and at the same time one of the largest emitters of greenhouse gases by burning these imported fossil fuels. Therefore, self-reliance in the energy sector through clean energy is an immediate requirement. The transportation sector is one of the fastest-growing sources of carbon emission in India and thus replacing conventional internal combustion engine vehicles (ICEV) with electric powertrains vehicles based on batteries or fuel cells can provide an ultimate solution. The Government of India (GoI) under the recently launched Faster Adoption and Manufacturing of Electric Vehicles-II (FAME-II) scheme, is providing subsidies for battery electric vehicles (BEVs) amounting up to 40% of initial vehicle cost. BEVs, however, are not a true zero-emission solution due to the fossil fuel-dominated energy mix of India. In addition, BEVs have inherent limitations like limited travel range, long charging times, and extreme sensitivity to the high temperatures prevalent in India. Fuel cell electric vehicles (FCEVs), on the other hand, provide a true zero-emission alternative for the transportation sector. However, due to their high initial cost (and lack of hydrogen filling stations), FCEVs are not as popular as BEVs. For understanding the cost competitiveness of FCEVs in the Indian context, a total cost of ownership (TCO) analysis that includes not only their initial cost but also operational cost over the total life of the vehicle is required. To provide such insights, in this work TCO analysis of FCEVs is performed by considering the total life of the vehicle to be twelve years in comparison to BEVs and ICEVs. A realistic approach is adopted by considering the average annual distance traveled, the fuel cost, and average electrical energy consumption. The role of subsidy, as provided to BEVs under the FAME-II scheme, is also considered for evaluating the cost competitiveness of FCEVs in comparison to BEVs.