NTPC eyes licence for setting up EV charging stations
NEWDELHI: State-owned NTPC Ltd is exploring the possibility of securing a national licence for setting up electric vehicle (EV) charging stations across the states. Currently under the Electricity Act, 2003, a distribution licence is required to distribute power from the respective state electricity regulatory commissions (SERCs).
India’s largest power generation utility is seeking a pan-India licence as it will help scale up its EV charging business rapidly in the face of emerging competition.
The EV business assumes importance for NTPC due to its estimated market potential of around 90 billion units (BU). With the current installed power generation capacity and projects under construction expected to meet India’s electricity demand till 2026, NTPC is scouting for growth areas.
“We are trying to get a common licence. Electricity can be sold by a discom, a licencee or a franchisee. All three models are there. It is a licenced activity. We will try to work it out if it is possible to have one licence for the whole country. We are looking for a country wide licencing. If that happens we will be able to set up the charging stations very quickly,” said a senior NTPC executive requesting anonymity.
Mint reported on 10 March about NTPC exploring an EV business to help create the demand for electricity generated by its plants and keep pace with the fast-changing power sector.
“This is a very good growing business as the demand for electricity will be created. It has a very good synergy with us because we can start with the charging part of the business
THE GOVT PLANS FOR A MASS SCALE SHIFT TO ELECTRIC VEHICLES BY 2030 SO THAT EVERY VEHICLE ON ROADS BY THEN IS POWERED BY ELECTRICITY
quickly. Later on we can get into battery and other associated businesses,” added the NTPC executive quoted above.
“What we have planned is to have battery banks wherein we will be swapping batteries. Basically it will be an energy business for us with charging from the renewable energy sources,” said another NTPC executive who also didn’t wish to be identified.
NTPC plans to set up battery swapping stations wherein recharged batteries will be swapped with the batteries drained of charge. The stateowned utility is working on a plan to bring down the cost of setting up these charging stations by half to around ₹1 lakh each.
In addition, NTPC wants to contribute significantly to India’s plans to set up 100 GW of solar power capacity by 2022. It wants to supply electricity from 10,000MW of solar capacity that it is setting up on its own and buy 15,000MW on behalf of the ministry of new and renewable energy.
An NTPC spokesperson in an emailed response confirmed the development, saying, “Yes, NTPC is exploring various options in the area of EV Charging Station Business.”
“The idea of a comprehensive National retail supply licence is going to be big a booster for NTPC’s business plans,” said Sambitosh Mohapatra, partner, energy and utilities at PwC India.