Energetica India Magazine October-November 2021

Driven by climate change and the poor air quality plaguing cities around the globe, nations are coming together to implement policies that advance the adoption of clean energy technologies while pivoting away from dirty, fossil fuels that have powered our everyday lives. We are now seeing an exciting shift in the world as electrification has become scalable, affordable and socially respon- sible. Of the emerging technologies, solutions that electrify transport hold the key to meeting decarbonization and emissions goals as 29% of the world’s global greenhouse gas emissions are generated by this sector alone. Critically, the transition to electrified solutions will most directly impact the people living in regions disproportionately affected by climate change and air pollution, includ- ing India, home to 14 out of the 15 most polluted cities in the world. The EV landscape as it stands Since 2019, India has enacted a nation- al policy to support the electric vehicle market, the Faster Adoption and Man- ufacturing of Electric Vehicles (FAME- II) scheme, which holds the greatest potential to catalyze the electrification movement in-country and enable India to become a world leader in electric mo- bility. Notably, FAME-II provides three key frameworks to promote: local manu- facturing of electric vehicles and compo- nents, the development of EV charging infrastructure, and above all, incentives to encourage consumer adoption of new electric vehicles. As consumers (and the companies look- ing to offer electric vehicles in India) can attest to, the biggest barrier to entry is cost. Although electric vehicles have the overall lowest long-term cost of owner- ship, new EVs can have an upfront cost of 20-30% more than a new internal com- bustion engine vehicle, and faced with that decision, the country has not fully made the transition. Leveling the upfront cost between tra- ditional combustion vehicles and mod- ern electric vehicles is one of the most important challenges facing electrifica - tion adoption not only in cost-sensitive emerging markets like India but world- wide. However, even with the national incentives provided by the government, many consumers still may not be able to afford the cost of a new vehicle, let alone an electric one. An affordable solution for all: EV ret- rofitting There are nearly 230 million two-wheel- ers and 5.4 million three-wheelers on In- dia’s roads. Over 60% of these vehicles are fueled by diesel or petrol, while the remaining 2.3 million electric two- and three-wheelers already on the roads are for the majority, powered by lead-ac- id batteries. Sheer carbon emissions aside, each of these three existing power sources for twoand three-wheelers car- ry their own environmental footprint and long-term costs, such as maintenance. For India to truly advance electrification in-country, converting all 233 million ex- isting fossil fuel-powered light mobility vehicles is a critical initiative. For a country that is already heavily reliant on two- and three-wheelers to move around daily, obsoleting all fossil fuel- or lead-acid-powered vehicles is impractical. Many drivers rely on twoand three-wheelers for income and have al- ready invested heavily in the purchase of their vehicles. For these drivers who are cost-sensitive, retrofitting is the best Keeping India at the Forefront of the Global Energy Transition ELECTRIC VEHICLES Pankaj Dubey Co-founder and CEO Power Global India Leveling the upfront cost between traditional combustion vehicles and modern electric vehicles is one of the most important challenges facing electrification adoption not only in cost-sensitive emerging markets like India but worldwide. However, even with the national incentives provided by the government, many consumers still may not be able to afford the cost of a new vehicle, let alone an electric one. 42 energetica INDIA- Oct-Nov_2021