The Role of Electric Mobility in India’s Renewable Energy Revolution

India’s impressive achievement on the renewable front is making global headlines today. The country is the world's third-largest in terms of installed renewable energy capacity (45.5% of total capacity) and clocked an energy generation growth of 6.80% in 2023, the highest in the last 30 years. From solar to wind and hydro to biomass, India is making impressive strides in the renewable energy sector. 

Similar impressive growth the country is witnessing in electrification of its mobility sector. With prospects of Electric Vehicles (EVs) on the roll, the significance that they pose for the renewable energy revolution does not remain limited to the economic dimension - rather are of strategic interest. Not only shift towards electrification of mobility will reduce emissions but also push the entire energy ecosystem to embrace renewable sources more holistically. Here are key ways electric mobility can boost prospects of renewable energy in India while contributing significantly to preserving our environment for future generations. 

1) Net-Zero Emissions: India has committed to becoming a net-zero country by 2070 and to that end, EVs can play an important role in the achievement of this ambitious target. The government wants to achieve 30% electrification of mobility by 2030 and then incrementally upgrade this to 50%, 80%, and 100% in the future. While EVs prove crucial in meeting our commitment on the emission front, the electricity required for their charging can boost the business prospects of renewable energy companies. In fact, EVs can kick start a large-scale revolution for renewable energy and this coupled with constructive policies will encourage more players to come into the sector and start with their venture.  

b) Enhancing Energy Independence: India imports 85-90% of its crude requirements from abroad and spends a hefty amount of money in the process. This enormous spending on fossil fuel imports continues to remain a heavy burden on our finances. EV growth can prove instrumental in reducing our dependence on crude by scaling our green energy production. From wind to water and solar, the capacity enhancements in renewable space are already being catalyzed by electrification of mobility and going forward, renewables will further reduce the requirement of fossil fuels for electricity generation, thereby bringing a much-needed boost to the renewable energy sector. 

c) Technological Upgradations: The rising adoption of EVs is proving critical for the technology upgradation in the renewable energy sector. The entire power ecosystem is going through transformative changes as integrating renewables mandates changes in the grid infrastructure and its functioning. The lines, wires, transmission, etc. have to be upgraded to handle enhanced loads and this entire process is leading to new opportunities for businesses. EVs are also heralding a technical revolution in which renewable companies are participating and working closely with the manufacturers to offer superior value to end consumers. 

d) Public Charging Infrastructure: The critical role of public charging in boosting the prospects of electric mobility couldn't be overemphasized. Range anxiety is the biggest fear that EV owners have and to quell it there is an urgent need to develop charging infrastructure in public places. Here again, the renewable energy companies are leveraging opportunities by setting up charging facilities on highways, fuel stations, restaurants, and other prominent places. Tata Power, SunPower, Adani Green Energy, and many more renewable companies are increasingly entering into creating charging infrastructure for EVs. The push towards EVs is resulting in opportunities for renewable producers who are leaving no stone unturned to make the most of the opportunity. 

e) Policy Push: Perhaps the most significant factor that is helping renewable energy companies is the policy push towards wider adoption of EVs.  Both central and state governments in India today are offering a range of benefits to achieve higher levels of mobility electrification. The incentives the available for both manufacturers and customers, thereby helping in the holistic adoption of electric mobility at a mass level. While under the production-linked incentive scheme (PLI) manufacturers can claim subsidies, the purchase incentives are available for the customers who buy the EV. In addition, there is lower GST with many states offering exemption on the road tax on the purchase of EVs. All these policies are generating demand for EVs which in turn fuelling the need for renewable electricity, offering enhanced growth and profitability prospects for renewable energy companies. 

EVs' widening footprints are leading to considerable expansion in the renewable energy generation sector. Both these business segments are directly related to each other and with demand for EVs growing by the day, the business, growth, and profitability prospects for renewable energy producers are also rising exponentially. In fact, by looking at the exponential growth in electric mobility, one can fairly assume that it is just a matter of time before EVs will emerge as one of the largest customers for the renewable energy sector. 
 

- Mitull Batraa, Co-founder & CEO, Udaan E Vehicles