Ather Energy plans to clone Tesla’s charging biz model

Ather Energy, promoted by India’s largest twowheeler company Hero MotoCorp Ltd, plans to replicate Tesla Inc’s charging infrastructure business model in India.

The Bengaluru-based electric scooter maker is preparing a blueprint to install charging stations at malls, cinemas, offices and business parks, and have at least some of them ready before its so-called smart electric scooter S340 hits the road in 2018.

The Pawan Munjal-promoted Hero MotoCorp picked up a 26-30% stake in Ather Energy through a ₹205-crore “strategic investment” in October 2016.

The plan hinges on changes being effected to the Electricity Act, 2003. Under the Act, an individual or a private institution cannot sell electricity unless one obtains a discom licence to distribute power from a competent state government authority.

“Say we are to set up a charging station at a cafe. Under the current rules we cannot install a meter in our name as an EVSE (electric vehicle supply equipment) business. And even if the cafe installs its own metre, it cannot resell electricity. This raises questions on the business model for EVSEs,” said Ravneet Phokela, chief business officer, Ather.

Last year, according to a person directly involved with the matter, Ather wrote to the Prime Minister’s Office (PMO) voicing this concern. The PMO, in turn, moved the request to the department of industrial policy and promotion (DIPP), which in turn connected it to officials at the department of heavy industries. This person said the secretary in the department of heavy industries has written to the ministry of power to take up the issue, and has been assured that the matter is being looked into and a policy change will be notified.

Ather, if it is allowed to sell electricity through its own charging stations, will open the infrastructure for use by other electric vehicle makers. Tesla has built over 5,400 Superchargers. In parallel, it built a network of more than 9,000 destination charging connectors, and provided hotels and resorts with Tesla wall connectors.

Emails to spokespersons for the PMO, department of heavy industries, DIPP and the power ministry seeking comments remained unanswered as of press time.