Convergence of EVs, Battery Storage Delhi, 7th September, 2018

E-Mobility – Status and Next Steps About 5000 cars and 4 lakh other vehicles – 2W/ 3W Absence of charging infrastructure – Range Anxiety FAME-I intervention could not stimulate e-mobility – FAME-II to focus on charging infrastructure and public/ shared mobility EESL’s programme of electrification of Government fleet – more than 15,000 demand aggregated Charging infrastructure in offices being set up – Delhi, AP, Maharashtra, Jharkhand

E-Mobility – Challenges Several states have issued e-mobility policy – Maharashtra, AP, Karnataka, etc – yet to take off due to Lower range of cars in the market at present Absence of charging infrastructure Inadequate awareness of the economic viability as against IC engine cars High capital cost – low demand and insignificant production Present charging specifications rudimentary cannot drive e-mobility Higher specification chargers expensive and in the present economic viability does not exist Regulations under MV Act do not allow quick introduction of new models – homologation takes almost a year Battery costs are high and in the absence of demand – no domestic manufacturing

E-Mobility – Opportunities Low running costs provide scalability in quick time – sales of vehicles (2W and 4W) increased 400% between 2000 and 2015 – similar (if not more) growth expected till 2030 Business of charging promises significant returns – estimated Rs. 42,000 crore by 2030 basis the projections by Government Immediate demand for 100 GWh of Battery can be generated – investments of $ 20-25b Investments in e-vehicle manufacturing – similar investments possible in the near term Localisation of components for batteries, cars, motors – drive the ecosystem for reduction in costs and affordability Increased manufacturing could promote export markets – e-mobility being a growing trend worldwide

E-Mobility – Issues Fragmented regulatory responsibilities – amongst 5-6 government departments Non-fiscal incentives for setting up charging stations and vehicles – free parking in government parking, mandatory installation of charging stations in new residential/ commercial buildings, etc Preparedness of cities for installation of charging infrastructure – upgradation of existing distribution networks Safety standards of CEA vs Upgradation of distribution infrastructure for high capacity charges vs Delicensing of charging? Role of private sector in setting up charging stations Battery swapping Cap on charging tariff to consumers Convergence – ancillary services market to tide over the short term.

Ancillary Services - Requirement Type Requirement (2017) Rationale Primary 4.0 GW Primary reserves of 4 GW would be maintained on an All India basis considering 4 GW generating station (UMPP) outage as a credible contingency. The same would be provided by generating units in line with IEGC provisions. Secondary 3.6 GW Each region should maintain secondary reserve corresponding to the largest unit size in the region Tertiary 7.0 GW Tertiary reserves should be maintained in a de-centralized fashion by each state control area for at least 50% of the largest generating unit available in the state control area Total 14.6 GW [~4.4% of total installed capacity, i.e., 334 GW] Estimated reserve requirement: 26 GW (2022) and 32 GW (2027) National Electricity Policy (NEP) mandates 5% reserves CERC is developing a discussion paper on ancillary services market Potential sources for reserves: Pumped hydro storage, gas turbine generators, coal-fired generators, battery storage, AGC, FGMO, DSR

Ancillary Services - Opportunities Installed base expected to be 25 GW by 2030 Capacity market development to encourage capacity markets like Short Term Operating Reserve (STOR) in UK Investment opportunities in battery storage systems Value added services to grid Making storage based charging systems for EVs commercially viable Bulk Energy Services Flattening of load curve Arbitrage (time shifting of energy) Capacity supply Mini grid applications Grid Support Services Frequency response Reserve power Voltage support Load following RE output smoothening Minimise DSM/UI charges Transmission & Distribution T&D infrastructure deferral Transmission congestion relief Distribution voltage support Consumer Energy Support Power quality Power reliability Time shifting of energy Demand Response EV Charging Electric vehicles Decentralised storage Insulation of EVs from Grid

Ancillary Services - Issues CERC Regulations restrict market participation No guidelines for STOR and Capacity markets Storage based EV charging – coupled with STOR could provide commercially viable services – enabling regulations could stimulate private sector investments Open specifications for charging and EVs could also promote V2G market – making EVs more affordable TOD for charging could enable load balancing

Thank You For more information contact skumar@eesl.co.in www.eesl.co.in