In recent years, the global automotive industry has witnessed a paradigm shift with the rapid rise of electric vehicles (EVs). As nations worldwide commit to reducing carbon emissions and combating climate change, EVs have emerged as a pivotal solution towards a sustainable future. However, amidst this transformative journey, ensuring the success and longevity of the EV revolution demands meticulous attention to technical due diligence.
Growing Global Investments in EV Sector
Figure.1 Global Investments in EV Sector
In 2022, Venture Capital (VC) investments in early-stage battery technology start-ups increased by 15% to nearly USD 850 million
VC investments in vehicle and charging technology start-ups rose by 50% to USD 1.2 billion in 2022
Notably, the charging segment saw a record high in early-stage funding, reaching USD 730 million
Funding for battery recycling and reuse experienced an eightfold increase from 2021, reaching USD 200 million
From 2018 to 2022, China dominated VC investments in electric car start-ups, accounting for 70%. The United States led in investments for charging, trucks, and battery components during this period
Funding for battery manufacturing start-ups was evenly distributed across China, Europe, and the United States
India emerged as a significant player in the global EV VC space, particularly in two-wheelers, alongside China
Technical due diligence serves as the cornerstone of evaluating the feasibility, reliability, and safety of EV technologies and infrastructure.
Performance and Efficiency: Technical due diligence assesses the performance metrics and efficiency of EV components such as batteries, motors, and charging systems. This scrutiny ensures that EVs meet or exceed the performance benchmarks set by traditional internal combustion engine vehicles, thereby instilling confidence among consumers and investors.
Safety Standards Compliance: EVs involve intricate electrical systems and high-voltage components, necessitating adherence to rigorous safety standards. Technical due diligence verifies compliance with regulatory requirements and industry standards, mitigating risks associated with potential hazards such as battery fires or electrical malfunctions.
Supply Chain Resilience: The EV ecosystem relies on a complex global supply chain encompassing critical raw materials, components, and manufacturing processes. Thorough technical due diligence evaluates the robustness and resilience of the supply chain, identifying vulnerabilities and mitigating supply chain risks to ensure uninterrupted production and distribution of EVs.
Innovation and Technology Integration: EVs continue to evolve with advancements in battery technology, autonomous driving capabilities, and vehicle-to-grid integration. Technical due diligence facilitates the assessment of emerging technologies, and the evaluation of their feasibility, scalability, and compatibility with existing EV platforms.
Infrastructure Development: The widespread adoption of EVs hinges upon the availability of robust charging infrastructure. Technical due diligence scrutinizes the design, implementation, and scalability of charging networks, ensuring seamless integration with grid infrastructure and optimizing charging efficiency.
Investment Decision-Making: For investors and stakeholders, technical due diligence provides invaluable insights into the viability and potential risks associated with EV projects. By conducting comprehensive assessments of technological, operational, and financial aspects, due diligence enables informed investment decisions, thereby fostering confidence and accelerating the flow of capital into the EV sector.
“The essence of technical due diligence lies in uncovering the hidden intricacies of technology, illuminating the path towards innovation, resilience, and sustainable growth.” – Vikrant Vaidya, Senior Partner, pManifoldGroup
pManifold works extensively in the eMobility sector providing technical due diligence support enhancing investment impact, market positioning, and development efficiency for various stakeholders as shown below:
India, with its robust economic growth, is emerging as a pivotal global player across various sectors, including the transportation sector. The nation has set an ambitious target of achieving net-zero emissions by 2070. To achieve this goal, an important step involves the decarbonization of the transportation sector, with a specific focus on transitioning to electric vehicles (EVs) to mitigate Greenhouse Gas (GHG) emissions. There are ambitious targets set to increase the share of EV sales to 30% in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two-wheelers and three-wheelers by 2030. In absolute numbers, this is estimated to translate into an impressive target of 80 million EVs on Indian roads by 2030.
The Indian automotive market is expected to be the third-largest by 2030, considering volume, underscores the anticipated growth and significance of the industry on a global scale. The strategic transition to EVs in India comes with diverse advantages. The country possesses a pool of skilled manpower in the technology and manufacturing sectors, established industry players, and new stakeholders exploring multiple pathways to R&D and commercial production of vehicles and auto components. This transformation is geared towards meeting the increasing EV demands both domestically and globally. According to an independent study by the CEEW Centre for Energy Finance (CEEW-CEF), the EV market in India will be a US$206 billion opportunity by 2030 if India maintains steady progress to meet its ambitious 2030 target. This would require a cumulative investment of around US$175 billion in vehicle production.
Policy Backing for Indigenous Manufacturing
The Indian government has approved initiatives like the Production Linked Incentive (PLI)scheme for the Auto and the Auto Component to drive and enhance local production capabilities and achieve its goal. This scheme intends to incentivize high-value advanced automotive technology vehicles and products, including ‘green automotive manufacturing’.It is open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business. It comprises two main components:
Champion OEM Incentive Scheme: This is a ‘sales value linked’ scheme, applicable to battery electric vehicles, and hydrogen fuel cell vehicles of all segments.
Component Champion Incentive Scheme: This is a ‘sales value linked’ scheme, applicable to advanced automotive technology components of vehicles, completely knocked down (CKD)/ semi knocked down (SKD) kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles, and tractors, etc.
The scheme has been successful in attracting a proposed investment of ₹ 74,850 crore (USD ~9 billion) against the target estimate of investment of ₹ 42,500 crore (USD ~5 billion)over a period of five years. The proposed investment of ₹ 45,016 crore (USD ~5 billion) is from approved applicants under Champion OEM Incentive Scheme and ₹ 29,834 (USD 3.5 billion) crore from approved applicants under Component Champion Incentive Scheme[1].
This PLI Scheme for the automotive sector along with the already launched PLI scheme for Advanced Chemistry Cell with a budget outlay of ₹18,100 crore (USD 2.1 billion) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) Scheme of ₹10,000 crore(USD 1.2 billion) will give a big boost to manufacturing of EVs in India.
Growing EV Market and Industry Commitments
In the first nine months of 2023, the sale of passenger EV cars in the country surged to 75,000, more than doubling the volume from the same period the previous year. Notably, 86% of all-electric cars sold this year were priced under $20,000. Several new models were introduced, including the most economical one, MG’s Comet mini car, retailing for less than $10,000. Tata Motors’ popular Tiago compact EV, priced around $10,500, accounted for 39% of EV shipments[2].
India exported on average over half a million cars over the past 5 years[3]. According to industry insiders, exports from India are poised to surpass the annual threshold of ~1 million units within the next four to five years. During this period, it is anticipated that EV exports will constitute 25-30 percent of all vehicles shipped from the country, despite domestic EV penetration possibly reaching only 10-15 percent.
The surge in demand and the growing EV market has prompted commitments from automakers to enhance local EV production. According to data from BloombergNEF, these companies have pledged nearly $5.4 billion in investments to establish new or expand existing EV manufacturing facilities in India. These include commitments not only by domestic companies such as Tata Motors and Mahindra & Mahindra but also by Korean automakers Hyundai and Kia. The other notable developments from prominent automakers in this sector are as follows:
Maruti Suzuki plans to produce over 2.5 lakh units of EVs by 2027, of which almost 60-70 percent will be exported to key global markets including Japan
Honda Cars India, in preparation for its upcoming EV based on the new mid-size SUV platform, is internally developing a project called Asian Compact Electric (ACE-EV). Anticipated to commence in 2026-2027, the automaker aims to export approximately 30,000-50,000 units of its EVs to Japan and other global markets.
Vietnamese EV start-upVinFast has recently disclosed its intentions to establish an EV manufacturing facility in India by 2026, with an overall investment of USD 2 billion (over ₹16,000 crore)
To support this capacity expansion, the government plans to provide subsidies, aligning with its broader initiatives to decrease India’s dependence on imports for EV components. The government is considering reducing import duties on fully assembled units for companies like Tesla in the initial stages. A policy framework is also in the works for technologically advanced vehicle manufacturers, mandating local sourcing. The import duty on green/eco-friendly vehicles may be significantly lowered, potentially from 100 percent to 15-30 percent[4], with the condition that Indian carmakers initiate local production and source components locally. Furthermore, the government will seek assurances from these companies regarding the development of a supplier ecosystem, with an initial requirement of sourcing about 20 percent of the parts locally within the first two years. This percentage is expected to increase to 40 percent by the fourth year of the agreement.
In addition to vehicle manufacturing commitments, local battery plants have also expanded, supported in part by government subsidies. Companies including Tata Group, Amara Raja, Exide Industries, and Ola Electric – all local players – have announced a total of 12.6 gigawatt-hours of cell manufacturing capacity. More announcements are expected in the coming months once the government awards the remaining capacity under its aid program.
It is evident that India is embarking on the next stage of its automotive evolution. The Indian government has declared its commitment to establishing the country as a robust hub for EV domestic and export needs, supported by proactive policies. This intention is swiftly transforming into tangible actions on the ground, prompting national as well as global vehicle manufacturers to make pivotal commitments. This trajectory positions India as a formidable contender in the global EV competition.
(Views are personal, consolidated from various sources including articles, blogs, etc.)
[4]EV Sector in India: Production Capacity, Government Targets, and Market Performance
Retrofitting Electric Vehicles (EVs) presents a compelling opportunity to accelerate the transition towards sustainable transportation worldwide. Globally, as countries set ambitious targets for reducing carbon emissions, retrofitting offers a viable solution to upgrade existing internal combustion engine vehicles. It not only extends the lifespan of these vehicles but also significantly reduces their environmental impact.
However, challenges persist, such as ensuring compatibility with diverse vehicle models, optimizing battery technology, and addressing regulatory standards. Additionally, the cost-effectiveness of retrofitting compared to purchasing new EVs remains a critical consideration. In Africa, retrofitting holds immense promise, particularly in regions heavily reliant on older, polluting vehicles. The continent faces unique challenges, including limited access to charging infrastructure and a diverse vehicle fleet. Retrofitting offers an opportunity to bridge this gap by transforming conventional vehicles into cleaner, more efficient alternatives. By leveraging local expertise and resources, Africa can potentially lead in the adoption of retrofitting technologies, fostering economic growth and environmental sustainability.
In India, with a burgeoning automotive market and a rapidly expanding EV sector, retrofitting assumes strategic importance. It provides a practical approach to make the existing fleet more eco-friendly, especially in a country with a substantial number of older vehicles. Moreover, retrofitting aligns with India’s emphasis on ‘Make in India’ initiatives, spurring innovation and employment opportunities in the EV ecosystem. However, ensuring safety standards, establishing reliable battery disposal mechanisms, and creating robust regulatory frameworks will be essential to unlock the full potential of EV retrofitting in the Indian context.
pManifold organized a webinar on the topic “ Understanding Opportunities and Challenges in Retrofitting EVs” and to get a better understanding of the topic webinar had Stephan Lacock, Mechatronic engineer from the University of Stellanbosch, Rani Srinivasan – founder and CEO of Zero21 Renewable Energy Solutions and Vikrant Vaidya – partner and lead of EV systems engineering, pManifold.
The webinar focused on:
Understanding the business case for EV retro-fitment and the associated challenges and opportunities (India & Africa)
Understanding technical challenges and mitigation measures in EV retro-fitment to ensure reliability and safety (India & Africa)
Overview of the existing regulatory support to navigate the challenges and drive widespread adoption
Stephan Lacock, mechanical engineer from Stellenbosch University, highlighted current transport and vehicle-related trends in South Africa, revealing that South Africa exports 63% of locally manufactured vehicles, with 70% going to Europe, contributing around 4.3% to South Africa’s GDP. However, the impending 2035 deadline in Europe to stop selling internal combustion engine vehicles poses a risk to approximately 500,000 local jobs. Stephan also stressed the importance of skill development, carbon emissions reduction, and affordability for a successful transition to electric vehicles
Giving an overview of the five-year study exploring the feasibility of retrofitting public transportation vehicles in Sub-Saharan Africa, Stephan highlighted retrofitting existing vehicles as a cost-effective solution compared to local manufacturing of Sub-Saharan Africa-specific electric vehicles. Although retrofitting costs are initially higher, scaling the process can reduce costs by large, making the transition much more affordable. Stephan showcased a prototype of a retrofitted a 65-seater bus and a small pick-up truck and emphasized on the Golden Rule for retrofitting – “Strive to maintain the vehicle as close as possible to its original physical condition and behavior”
The webinar also discussed challenges in electrification in countries like India. Rani Srinivasan – founder and CEO of Zero21-Renewable Energy Solutions who has deployed ICAT-authorised conversion kits, highlighted conversion kits as a \viable solution to accelerate EV adoption especially three-wheelers, with reduced environmental impact of mass manufacturing. He also emphasized the challenges for retrofitting which include the absence of a robust scrap policy, lack of specific standards for retrofitting, issues with vehicle uniformity to fit the conversion kit, and scalability.
Rani also highlighted that policy measures such as reduced GST and provision of financing for the new vehicles are impacting conversion kits uptake. He advocated the need for conversion over scrapping which addresses most of the financial, environmental, and logistical concerns, presenting retrofitting as a viable solution for the large-scale conversion of three-wheelers in India. Additionally, education and awareness efforts need to be focused on promoting the adoption of the conversion kits.
On the other hand, Lacock discussed financing challenges in retrofitting in South Africa and acknowledged that despite incentive programs by government entities and development banks in Sub-Saharan Africa, there is hesitancy due to perceived complexity and high costs. While technology is ready, convincing funders to support retrofitting projects is hindered by the need for ground data and tracking to prove the vehicle’s lifespan.
Lastly, speakers emphasized the importance of safety measures in retrofitting especially in the context of batteries and the need for compliance with regulatory standards. Both speakers highlighted the necessity of proper training and education to address safety concerns in the retrofitting process.
Can Metal-Air Batteries have the potential to revolutionize the automotive industry? Metal-air batteries have become the subject of intensive research worldwide and have made great strides in the past decade. They are expected to be used in new energy vehicles, portable equipment, stationary power generation devices, and other fields in the future. This type of battery doesn’t need the usual electrodes and is much lighter, weighing only a fifth of traditional lithium batteries. The metal-air battery offers benefits like efficient charging, high energy storage, and environmental friendliness. It’s essentially a hybrid energy storage and fuel cell, representing an innovative advancement in energy technology.
However, the question arises: Is it really an alternative to lithium batteries?
Metal–air batteries have a theoretical energy density much higher than that of lithium-ion batteries and are frequently advocated as a solution for next-generation electrochemical energy storage in applications such as electric vehicles or grid energy storage
Metal-air batteries were invented in 1978, taking the oxygen (atmosphere) as the cathode, the electron receiver, and metal as anode, the electron distributor paired up with water-electrolyte. The anode is designed for cheap metals like zinc, aluminum, and iron. The metal used in vehicles’ batteries produces electricity when exposed to atmospheric oxygen.
Metal-air batteries have recently regained attention as potential candidates for energy storage. These batteries consist of a metal anode, which can be alkali metals (Li, Na, and K), alkaline earth metals (Mg), or first-row transition metals (Fe and Zn), combined with a suitable electrolyte. The choice of electrolyte, whether aqueous or non-aqueous, depends on the anode used. The air-breathing cathode typically features an open porous structure to continuously draw oxygen from the surrounding air.
These batteries are a mature family of primary and secondary cells, with the positive electrode often composed of a carbon-based material with precious metals that react with oxygen. Meanwhile, the other electrode is made from metals like zinc, aluminum, magnesium, or lithium. Due to the flow of air through the cell, they are sometimes categorized as fuel cells. Metal-air batteries combine design elements from both traditional batteries and fuel cells.
The first 3 primary zinc-air batteries were designed by Maiche dating back to 1878, and its commercial products started to enter the market in 1932. Despite their early beginning, the development of metal-air batteries has been hampered by problems associated with metal anodes, air catalysts, and electrolytes. None of them at present are at a stage for large-scale industrial deployment. Their viability to replace lithium-ion batteries for future EV applications also remains unclear.
What gives metal air a large capacity?
A metal–air battery consists of a base metal negative electrode and an air-positive electrode. The active material of the positive electrode is oxygen contained in the air, which is a strong oxidizing agent, light in weight, and normally available everywhere. As the oxygen is supplied from outside the battery, most of the interior of the battery can be used to accommodate the negative electrode material. This gives metal–air batteries a large capacity.
Current scenario
Lithium is the biggest energy provider and an expensive unit of an electric vehicle India imports a large amount of the metal. Even though lithium mines have been found in Jharkhand and Gujarat, the lack of tech to develop them into batteries is a major challenge.
Metal-air in the EV industry
Metal-air batteries can arguably revolutionize the EV market since it is lightweight, budget-friendly, long-range, and recyclable. Battey expenditure is one of the biggest hurdles in the widespread adoption of EVs. Several attempts have been made in the past to use the metal-air batteries but left halfway. The biggest and most prominent hurdle is its incapability to be charged again.
Lebanon’s persistent electricity crisis has brought the nation dangerously close to a financial collapse. Prolonged power outages are severely hampering economic activity, and the extensive subsidies for electricity have contributed to Lebanon carrying one of the world’s heaviest public debt burdens. People are forced to spend 21-23 hours in total darkness or privately source electricity at outrageous rates. Many are forced to reprioritize their needs, laying aside their generator subscriptions.
Since October 2019, Lebanon’s economy has been in a deep financial crisis. The World Bank has called the crisis one of the worst in modern history. Inflation soared to 145 percent on average in 2021, placing Lebanon third globally in terms of the highest inflation rates, after Venezuela and Sudan.
The pandemic worsened the already challenging economic downturn, accelerating the overall collapse of Lebanon’s economy. This surge in inflation also scrapped the purchasing power of the population, making it increasingly difficult for households to afford even basic necessities. In Lebanon, access to electricity has now become a privilege reserved only for the wealthiest. Furthering the nation’s evident wealth inequality and driving more people into poverty during one of the most severe economic crises in recent history. To top it up, Lebanon has struggled with frequent power shortages for several years, and past attempts to solve this problem have faced obstacles due to conflicts, political instability, and the complexities of governance.
Lebanon’s Energy Scenario
Since the start of Lebanon’s civil war in 1975, the national electricity grid has been unable to meet the needs of the population. As a result, people have had to depend on costly local generators to bridge the energy gaps. Even though the civil war officially ended in 1990, the electricity grid’s issues persisted. In 2021, Electricity of Lebanon, Electricite du Liban (EDL), the state power provider, had to stop supplying electricity due to a lack of fuel, leading to prolonged and widespread blackouts in the country. In Beirut, these blackouts continued for more than a year and a half, with EDL managing to provide only around 3-4 hours of electricity daily.
The state-run Electricité du Liban (EDL) has a generation capacity of around 1,800 megawatts, according to Pierre Khoury, the director of the government-affiliated Lebanese Center for Energy Conservation (LCEC), compared with the estimated 2,000 to 3,000 megawatts the country needed before the crisis. But EDL provides only around 200 to 250 megawatts in the present day, because the economic collapse means the government struggles to pay for the imported fuel used to power the country’s two main electricity plants.
In 2021, blackouts in Beirut, Lebanon continued for more than a year and a half, with EDL managing to provide only around 3-4 hours of electricity daily
As per Reuters, the government’s net transfers to EdL amounts to $1 billion-$1.5 billion a year, of which most of it spent on fuel oil. The accumulated cost of subsidizing EdL amounts to about 40 percent of Lebanon’s entire debt and continues to have high AT&C losses.
While the grid energy scenario looks gloomy, there is a brighter side to it since people have been turning to solar energy for two main reasons – security of the power supply and the cheapest source of electricity compared to conventional energy. This solar boom not only has had an impact on the lives of people but also has a positive impact on the environment by reducing greenhouse gas emissions that were generated by the generators run on fossil fuels.
Lebanon went from generating zero solar power in 2010 to having 90 megawatts of solar capacity in 2020. But the major surge happened when a further 100 megawatts were added in 2021 and 500 megawatts in 2022, according to the LCEC’s Khoury. The solar panels and battery system, which were installed in July 2020, are saving the family between $3,000 and $4,000 a year in electricity and generator bills. (They spent over $10,000 to install them.)
Lebanon’s experience has highlighted the potential of solar energy as a valuable and dependable source of clean electricity, especially when traditional electricity systems face disruptions.
A report by the International Renewable Energy Agency (IRENA) predicts that Lebanon could cost-effectively obtain 30% of its electricity supply from renewable sources by 2030, if the proper plans were implemented to turn this into a reality. Lebanon gets around 300 days of sun every year and has lots of available land suitable for solar panels and wind turbines. The only aspect missing is the organized implementation of a large-scale project.
Lebanon’s Transport Scenario
Lebanon’s transportation relies heavily on gasoline and diesel, constituting to 97.9% of fuel usage and a strong dependence on fossil fuels. The sector is the second-largest energy consumer, responsible for about 23% of the country’s greenhouse gas emissions. Outdated and polluting cars result in annual economic losses of at least USD 200 million. Public transportation is underdeveloped, with only 35 buses operating on limited routes in 2019. In 2013, Lebanon emitted 26,285 Gg CO2 eq., primarily from burning fossil fuels, notably carbon dioxide. The transport sector alone contributes to 99% of carbon monoxide emissions, 60% of nitrogen oxide emissions, and over 23% of total annual greenhouse gas emissions.
Lebanon’s transport sector alone contributes to 99% of carbon monoxide emissions, 60% of nitrogen oxide emissions, and over 23% of total annual greenhouse gas emissions.
Electric Vehicles – A potential solution to mitigate Transport-related GHG emission
Given the challenging economic conditions prevailing in Lebanon, the prospect of EVs becoming a common sight for individual consumers appears to be a goal best pursued in the future. The realization of this vision is closely linked to the need for a well-developed charging infrastructure, which currently faces limitations. Moreover, economic stability in the country is a key prerequisite for the broader adoption of EVs by individuals. However, amidst these challenges, a glimmer of hope arises when we shift our focus to smaller-scale initiatives. Electrifying fleets and public transportation systems present a more immediate and practical opportunity for embracing EV technology in Lebanon. This approach can significantly contribute to the reduction of greenhouse gas emissions, energy cost savings, and environmental benefits while gradually paving the way for broader EV adoption when conditions are more favorable.
Transport
E-bus
ICE bus
Seater
23
23
Cost
LBP 1,272,280,000 (~84,000 USD)
~36,000 USD
According to the above observation: Electric buses (e-Bus) in Lebanon are priced approximately 180% higher than the average cost of traditional ICE (Internal Combustion Engine) buses.
In the context of the country’s current economic landscape, transitioning to electric fleets and public transportation can serve as a stepping stone, promoting the use of EVs and fostering sustainability within Lebanon. It aligns with the goal of enhancing urban mobility, reducing the environmental footprint, and creating a cleaner, more energy-efficient transportation system. This approach, although not an immediate solution for individual consumers, sets the stage for an EV-friendly future when the infrastructure and economic stability are firmly in place.
Solar-based Charging Infrastructure to support EV Adoption
When delving into EV deployment, it’s crucial to consider the vital aspect of Charging Infrastructure. In Lebanon, a burgeoning solar industry with increasingly affordable costs presents a promising solution to tackle energy-related challenges associated with charging EVs. The widespread adoption of solar power for charging infrastructure not only amplifies the advantages of EV deployment but also aligns with a cleaner energy paradigm.
Embracing solar-based charging infrastructure in Lebanon heralds a new era of opportunities for various stakeholders. From entrepreneurs venturing into solar energy solutions to existing businesses seeking to diversify into the EV sector, the prospects are vast. The integration of solar-powered EV charging will not only address the environmental concerns but also foster economic growth and innovation in the region.
Electric vehicles (EVs) have emerged as a transformative force in the automotive industry, promising a cleaner, more sustainable future for transportation. At the heart of every electric vehicle lies a crucial component: the electric motor. This compact yet powerful device is responsible for converting electrical energy into mechanical motion, propelling EVs forward with remarkable efficiency. In this blog, we shall delve into theworld of motors for electric vehicles, exploring their types, characteristics, significance and players in the EV revolution.
Types of Electric Motors:
Electric motors for EVs are classified into two main categories: DC and AC. While both find place in EV application, DC motors stand out for their robustness and simple control. DC Motors come in brushed and brushless variants. Brushed DC motors, though cost-effective and offering high torque at low speeds, are less favoured in EVs due to their larger size, lower efficiency, and frequent maintenance needs. In contrast, brushless DC motors excel with notably higher efficiency, employing electronic commutation rather than brushes. AC motors, on the other hand, boast benefits like superior efficiency, reduced maintenance, heightened reliability, and regenerative capabilities for efficient braking energy recovery—making them a popular choice in EVs.
The performance of the EV is intricately tied to the specific electrical motor specifications, which are defined by the torque-speed and power-speed characteristics of the traction motor. Below are the key features of the Electric Motor required for an EV
EV Motors and their characteristics:
DC Motors: Simplifying Control and Boosting Torque
Robust Build and Simple Control: DC motors shine in EVs with their sturdy construction and straightforward control.
Torque-Speed Advantage: They deliver high torque at low speeds due to appropriate torque-speed characteristics.
Drawbacks: However, they come with size constraints, lower efficiency, maintenance demands, and limited speed range due to brush friction.
Permanent Magnet Brushless DC Motors (PM BLDC)
Magnet Magic: PM BLDC motors use permanent magnets, offering higher efficiency by eliminating rotor losses.
Constant Power Challenge: They have a shorter constant power operation range, but this can be extended using conduction angle control.
Limitations: High temperatures affect magnet strength, influencing torque capacity. Mechanical forces and cost are key concerns.
Induction Motors (IM): The Workhorses of EVs
Simplicity and Reliability: IMs are popular in EVs for their uncomplicated design, high reliability, and robustness.
Safety Advantage: They can naturally de-energize in case of inverter faults, enhancing EV safety.
Trade-offs: Slightly lower efficiency compared to PM motors, higher power losses, and lower power factor are their downsides.
Permanent Magnet Synchronous Motors (PMSM): Efficiency and Power Density
Magnets in Sync: PMSMs, like BLDCs, feature permanent magnets, but with a sinusoidal back EMF waveform.
Efficiency Prowess: They boast high efficiency and power density, making them ideal traction motors for various electric vehicles.
Concerns: High costs, eddy current loss at high speed, and reliability risks due to potential magnet breakage are considerations.
Switched Reluctance Motors (SRM): Torque Titans
High Torque Advantage: SRMs excel in applications requiring high torque, including EVs
Robust and Efficient: They offer fault tolerance, wide constant power operation, and simple maintenance without magnets or brushes.
Challenges: Increased vibration and noise, along with torque ripple, are drawbacks to consider.Top of Form
Further research, development, and industry adoption are needed to fully realize their benefits in the EV market
Investments and Collaborations:
Several Indian and international automotive giants have recognized the immense potential of the Indian EV market and are investing and collaborating with start-ups in establishing state-of-the-art motor manufacturing units. These facilities are equipped with cutting-edge technology to produce a wide range of electric motors, catering to diverse vehicle segments, from compact city cars to commercial fleets. For example, Tata AutoComp Systems, India’s leading auto component conglomerate has signed a Joint Venture with Prestolite Electric Beijing, China to Design, Engineer, Manufacture and Supply Powertrain Solutions including Motors for the Indian Electric Vehicle market.
Key Players in EV Motor Manufacturing:
Below are key EV Motor Manufacturers supplying Indian EV OEMs:
Category
Motor Manufacturer
Country of Origin
Country of Component Manufacturing
Client OEM
Motor Type
Volume(till 02.08.23)
e-2W
Ola Electric Technologies
India
India (Tamil Nadu)
Ola Electric
IPM – PMSM
1,65,747
Nidec Japan
Japan
Germany, China
Hero Electric
BLDC
1,72,593
Lucas TVS
India
India (Chennai)
TVS Electric
BLDC
1,05,089
Mahle
Germany
35 locations globally
Ather Energy
PMSM
1,03,868
Bosch
Germany
Miskolc, Hungary
Bajaj Chetak
BLDC
4,231
e-3W
Bosch
Germany
Miskolc, Hungary
Bajaj
BLDC
1,669
Jae Sung Tech
South Korea
India (Faridabad & Pune)
Omega Seiki
BLDC
5,228
Mahindra Electric MobilityXuzhou Hongrunda Electrical co. ltd
India
India (Bengaluru)
Mahindra
Induction MotorBLDC
56,109
China
Long C Motor And Controller Llp
China
India (Delhi)
YC
BLDC
94,651
Virya Mobility 5.0 LLP
India
India (Bengaluru)
Piaggio
IPM -PMSM
20,168
e-4W
Shanghai AutoEdrive
China
China
Tata cars
PMSM
42,911
BYD
China
China (Xi’an, Shenzhen, Changsha, Shaoguan)
BYD
PMSM
1,507
Huayu Automotive Electric Drive System
China
China
MG
PMSM
10,920
e-Buses
Dana TM4
Canada
Canada, India, US, Italy, England, China,Sweden
Tata buses
PMSM
675
Source: pManifold Analysis &
Thus, while electric vehicles themselves often steal the spotlight, it’s essential to recognize the driving force behind their incredible performance—electric motors. Their ingenious design and efficient operation play a crucial role in making EVs a viable and sustainable mode of transportation. As technology advances, it is expected that even more sophisticated and powerful motors will drive the future of electric mobility, ushering in a new era of cleaner, greener transportation.
The adoption of electric vehicles (EVs) in India is consistently growing with total annual sales reaching around 1.2 million units in 2022-23. This upward trajectory is particularly pronounced in the electric 2-wheeler (E2W) and electric 3-wheeler (E3W) segments, as shown in Figure 1. The impetus behind this surge can be attributed to the comprehensive policy measures implemented by the government.
To boost demand and support charging infrastructure, the government has introduced schemes like FAME-2, offering incentives, tax waivers, and subsidies for EV charging stations. Efforts are also underway to promote local manufacturing through schemes such as the Advanced Chemistry Cell Production Linked Incentive (PLI), Auto and Auto Component PLI, and the Phased Manufacturing Program for EV components. Several States are aligning their policies to incentivize EV production and provide other benefits for EV penetration.
Figure 1. EV Sales Registered in India Source: Vahan Dashboard
As per the recent report published by NITI Aayog and BCG, the overall outlook for EV volumes in India is optimistic, with projections indicating a growth to 30-35 lakh units by 2026 (although quite ambitious), primarily driven by increased adoption in the 2W segment as shown in Figure 2. The EV financing market is expected to prosper, reaching INR 45-55 thousand crore by 2026, reflecting the anticipated growth in the sector.Despite these positive developments, affordable financing remains a key factor and challenge for faster EV adoption.
Figure 3. PE/VC Investment in the e-Mobility Sector in India
EV financing in India has seen a growing trend where various investment mechanisms are being executed from grants, commercial loans, concessional loans, grants, etc. These investments are provided by various financing entities, primarily dominated by private equity (PE)/ venture capital (VC). They contributed around $13 million in 2015, and even after an economic slowdown investment into the Indian EV sector hit $906 million[1], as shown in Figure 3. Sector-wise, Original Equipment Manufacturers (OEMs) dominate funding, especially industry leaders like Tata Motors, Hyundai, and Mahindra, receiving major investments. Charging infrastructure and battery swapping has attracted substantial capital, which is important for addressing range anxiety. Mobility as a Service (MaaS) has gained investor interest due to recurring revenue potential. Battery development and manufacturing, initially limited, are growing as technology-forward models emerge, and the government pushes for localization.
In addition to this, various banks have made recent developments with a particular focus on loans for EVs, notably in the e-3W and e-4W segments. For e-rickshaws, financial institutions such as IndusInd Bank, Ujjivan Small Finance Bank, Bank of India, and Punjab National Bank have taken strides by offering dedicated loans. These loans come with distinctive features, including collateral-free options, appealing interest rates, and high Loan-to-Value (LTV) ratios. In e-4W, the State Bank of India (SBI) took a pioneering step by introducing the Green Car Loan in April 2019[2]. This specialized product for e-cars aims to support shared mobility services like ride-hailing. The SBI Green Loan incorporates a 20 basis points discount on existing car loan interest rates, a waiver of processing fees for the initial six months, an extended repayment period of up to eight years, and an elevated LTV ratio of 90 percent. These measures are designed to make electric car financing more appealing.
Even though India has made and is continuing to make significant progress in increasing investments in the EV sector through unique financial models, it still encounters challenges in attaining its 2030 objective of achieving a 30% penetration rate of electric vehicles (EVs). Both funders and companies seeking investment in the Indian EV sector perceive numerous risks and challenges.
Key challenges and risks for Investors and funders when considering funding for EV technology in various segments, including original equipment manufacturers (OEMs), charging infrastructure manufacturers and developers, and battery manufacturers:
Information Asymmetry: The nascent nature of the EV sector has resulted in information asymmetry between investors and investees, limiting investment in innovative companies.
Investors require clearer insights into EV tech, support for project pipelines, and advisory assistance
Approximately 33% of climate financiers face challenges due to their limited knowledge of the electric mobility field, which restricts deal flow and opportunities.
Perceived High Risk and Longer Investment Horizon: Investors/ Funders exhibit hesitancy due to the perceived risks associated with rapidly evolving EV technology and the extended timeline for returns.
Pressure on returns is exacerbated by the longer investment horizon required for this sector.
To foster sector growth, patient capital is vital, akin to the approach in the defense and aerospace industry. Investors should prioritize innovation and reliability over short-term gains.
Asset Valuation Complexity: Valuing assets in the EV sector is complex, primarily due to uncertainty regarding the lifespan of EVs and their components. High costs of capital prevail as financiers struggle to determine asset values.
The absence of clarity on the salvage value of components and the lack of a secondary market for EVs further exacerbate this issue
In India, where non-standard climate and road conditions prevail, predicting useful life becomes even more challenging
Charging stations face particular difficulties, including uncertain demand, low cash inflows relative to high setup costs, and still not a sustainable business model
Key challenges and risks for companies seeking funds/investment and for end-users considering EVs include:
Unfavorable Macroeconomic Environment: The current global environment of rising interest rates has diminished investor interest in the EV sector.
Start-ups in the sector have found it challenging to raise funds despite the sector’s potential
High-Interest Rates Affecting End-User Adoption: Domestic interest rates for EVs are notably higher compared to internal combustion engine (ICE) vehicles.
The cost of capital for 2-wheelers and 3-wheelers is exceptionally high, ranging from 35% for drivers to 18% for fleet owners
For mobility-as-a-service, the cost of capital falls in the range of 18-22%, making it less attractive to end-users
Limitations in financing options: End-user adoption faces additional obstacles due to less favorable financing terms, including reduced loan-to-value ratios for EVs and shorter repayment periods, along with limited financing options to select from.
Commercial EVs often come with short loan tenures of three years, while ICE vehicles typically have longer eight-year tenures
Shorter repayment periods result in higher equated monthly installments, making EV loans significantly more expensive for end-users
Limited participation from the banking sector in India adds to the challenge, with only a few banks offering specialized products for the EV sector, primarily in the e-rikshaw segment
Given the prevailing state of climate change, all sectors, even those resistant to decarbonisation, must swiftly transition to electric alternatives. Skeleton’s Super Battey and CATL battery swapping technology solutions may be the answer to one of the few challenges in the electrification of mining equipment.
Mining, a cornerstone of our global economy, is a catalyst for innovation and growth, supplying the essential resources that power diverse industries. Minerals like copper and aluminium serve as integral components in emerging renewable technologies. As the Green Technology & Sustainability Market anticipates exponential expansion, the significance of mining amplifies. As projections indicate exponential growth in the Green Technology & Sustainability Market, the role of mining becomes even more pivotal. To meet the demands of the future, the mining sector is set to play a crucial role in providing minerals like graphite, lithium, and cobalt, which could experience a nearly 500% increase by 2050.
The push towards sustainability and mine electrification is gaining momentum, and many mining companies are exploring ways to reduce their carbon footprint and improve safety and health outcomes for workers. The complexity of mining raw materials necessitates a multifaceted approach, employing a diverse array of techniques and equipment across various extraction phases, tailored to the unique characteristics of each material. The implementation of electric drills to penetrate rock formations, electric vehicles for efficient material transportation, and electric conveyor systems for streamlined operations underscores the industry’s commitment to sustainable practices.
The mining landscape features a spectrum of heavy equipment that ensures efficient on and off-road operations:
Large Mining Trucks: Facilitate the movement of materials within surface mines.
Hydraulic Mining Shovels: Specialised in digging and scooping
Dozers: Instrumental in raking and land preparation
Rotary Drill Rigs and Rock Drills: Crucial for creating essential holes
Motor Graders: Precise grading and levelling operations
Draglines: Efficiently removing exposed materials
Wheel Tractor Scrapers: Integral in earth-moving and levelling
Underground Mining Loaders and Trucks: Facilitate digging operations beneath the surface
Large Wheel Loader: Used to load materials onto trucks for transport
The primary challenge facing the mining industry soon lies in rendering these processes emission-free. However, avenues for precise and effective advancement in this domain are limited. Presently, diesel-based trucks and machinery are the norm in mining operations. The electrification of mining equipment poses complex challenges, demanding collaboration among tech developers, mining firms, and regulators. Ensuring electric equipment durability and safety in harsh conditions is intricate, along with meeting safety standards in hazardous environments.
One notable challenge is the non-stop nature of mining operations, demanding uninterrupted operation. CATL proposes battery swapping, exemplified by their 120-ton electric mining dump truck equipped with CATL batteries, showcasing extended operation without frequent charging. Companies like Skeleton Technologies developed SuperBattery in partnership with Shell, providing an end-to-end electrification system for cleaner mining. This innovation combines ultra-fast charging, in-vehicle energy storage, power provisioning, and microgrids, aiming to rival diesel-powered efficiency.
Skeleton’s SuperBattery amalgamates supercapacitor and battery attributes, aiding decarbonization in heavy industries, including mining. This advancement promises to reshape energy dynamics, benefiting mining operations and more.
Given the prevailing state of climate change, all sectors, even those resistant to decarbonisation, must swiftly transition to electric alternatives. Achieving this necessitates technologically advanced solutions, robust infrastructure development, and enhanced incentives for companies to tackle these challenges.
Climate hazards amplify operational challenges, while decarbonisation efforts reshape commodity demand. Mining’s journey towards sustainability mandates preparedness for climate-related challenges. The convergence of deep decarbonisation and renewable energy sources presents a transformative opportunity, mirroring the industry’s commitment to carbon neutrality.
Global Deployment and Challenges
Countries like India, the USA, and Australia host significant mining equipment deployments. The electrification efforts are gaining traction in Panama, Zambia, Sweden, and Namibia. However, challenges persist, including the transition from diesel to Battery Electric Vehicles (BEVs)[4] and access to renewable energy sources.
Although the adoption of BEVs has been slower in mining compared to the automotive sector, the opportunity for industry-wide electrification remains substantial. The industry’s potential for emission reduction through electrification aligns with broader sustainability goals. Decarbonisation and investment in electrified equipment are pivotal steps toward achieving climate targets. Adopting a long-term perspective, mining companies must strike a balance between sustainability, profitability, and resilience. As technology advances, electrification emerges as a key pathway to a greener, more resilient future for mining.
The industry, aspiring for global net-zero by 2050, embodies significant potential for targeted decarbonisation strategies. The move toward electrification, though slower than the automotive sector, marks an opportunity for the mining industry to champion a tailored transition.
The transportation sector is a significant contributor to global greenhouse gas (GHG) emissions. In 2021, it was responsible for almost 37% of all global emissions, according to the International Energy Agency (IEA).This makes it one of the largest contributors to climate change and underscores the urgent need to transition towards more sustainable forms of transportation. Many countries around the world have already taken steps towards this transition, with policies and regulations aimed at encouraging the adoption of Electric Vehicles (EVs). These policies include incentives for consumers and businesses, such as tax credits, rebates, and subsidies, to purchase EVs. Additionally, some governments have set targets for the percentage of EVs in their national fleet or have implemented regulations to reduce the emissions from vehicles. Despite these efforts, the shift towards EVs has been slower than anticipated, and the transition still presents significant challenges for businesses, public and private sectors.
The high cost of EV technologies in comparison to traditional vehicles has been identified as a significant barrier to the widespread adoption of EVs. This challenge has resulted in many stakeholders (e.g., businesses, government, organizations, etc.) finding it difficult to justify the necessary investment to transition towards electric mobility. The high cost of EV technologies can be attributed to several factors, including expensive batteries, limited local manufacturing capabilities, and insufficient economies of scale. These challenges have resulted in governments continuing to invest in internal combustion engine (ICE) vehicles.
The transition to sustainable transportation solutions also faces significant financial barriers, including the limited availability of financing alternatives and restricted credit access. These challenges make it difficult for stakeholders to invest in EV solutions, thereby impeding the shift towards a low-carbon future. In addition to financial hurdles, other factors such as insufficient technical expertise, inadequate charging infrastructure, unsupportive regulatory frameworks, limited availability of spare parts, and others contribute to the already substantial barriers hindering investment in sustainable transportation technologies. Climate financing is expected to play a crucial role in promoting the uptake of EVs globally as it can help overcome the financing requirements associated with EVs by providing a range of financial instruments to address the challenges. By leveraging these financial tools, it can help reduce the upfront costs associated with EVs and address several market failures related to financing, including:
Mobilizing capital for sustainable transportation projects
The financial barriers faced by countries/governments in investing in sustainable transportation projects are significant and multifaceted. These barriers include limited access to capital markets, high levels of debt, and other economic challenges that hinder their ability to effectively address the challenges posed by climate change. In order to overcome these barriers, climate financing agencies provide a range of financial instruments such as grants, concessional loans, guarantees, and other innovative financing mechanisms to help countries access the capital needed to invest in these projects. The provision of financial support by climate financing agencies not only helps them access the capital they need to invest in sustainable transportation projects but also stimulates investments from the private sector and other relevant stakeholders. This collaboration increases the potential for success and facilitates the development of sustainable transportation infrastructure that reduces greenhouse gas (GHG) emissions and enhances climate resilience.
Providing financing with concessional rates and extended repayment periods
The transition to sustainable transportation technologies presents significant financial challenges due to high upfront capital costs, technology and operational risks. Access to commercial loans with high-interest rates in many countries further exacerbates the viability of these projects. To address these challenges, the climate financing supported project/programme provides funding at concessional interest rates and extended repayment periods, making the projects more financially feasible and attractive.
Supporting EV pilots to scale-up sustainable transportation market
The climate financing aims to create a conducive environment for the development of a scalable sustainable transportation market by supporting the pilot implementation of EV technologies. This approach provides valuable insights and learnings on the technological, economic, and operational aspects of sustainable transportation solutions. The insights gained from pilot projects will facilitate the successful scaling up of these projects, ultimately contributing to mitigate the adverse effects of climate change by promoting sustainable practices and reducing carbon emissions.
Enhancing capacity building/training for stakeholders
The climate financing program provides resources for capacity building, knowledge sharing, and technical assistance to equip stakeholders such as investors, project developers, and policymakers with the necessary knowledge and skills for successful implementation of sustainable transportation projects. The aim is to bridge the information gap between stakeholders and ensure informed decision-making.
It is evident climate financing will continue to play a crucial role in promoting the adoption of EVs in the coming decades. As the world increasingly shifts towards sustainable transportation technologies to combat climate change, the need for financing to support the transition to EVs is becoming more pressing. While climate financing is already being directed towards the transport sector, the current levels of investment fall short of the estimated annual needs. The estimated cost for investment in sustainable transportation technologies, including EVs, is between $2-2.8 trillion by 2030. Key players in climate financing such as Green Climate Fund (GCF), Global Environment Facility (GEF), International Finance Corporation (IFC), European Investment Bank (EIB), and others, are providing funding for various activities related to electric mobility, such as the deployment of EV charging infrastructure, purchase of EVs, establishment of EV supply chains, and capacity building and training programs for stakeholders. Therefore, it is crucial to increase investment in climate financing to support the transition to EVs and other sustainable transportation technologies, in order to mitigate the impact of climate change.
Transport and energy are important for economic growth and social development, but also major emitters of greenhouse gases. Transport emits 23% of energy-related CO2 and power industry emits 40%[1]. Hence, decarbonizing these sectors is necessary to limit global warming. Both sectors’ growth can lead to increased fossil fuel dependence and emissions. Making low-carbon energy and transport a priority for sustainable development can mitigate emissions and prevent investment in fossil fuel technologies that may become unviable before their end of life. Renewables, especially solar, wind, hydro and geothermal will play a major role in decarbonizing the power industry. Electrification of transport is a key strategy for reducing transport’s CO2 emissions.
E-mobility impact on electricity supply
The ability to electrify road transport is determined by the power sector’s capacity to provide reliable electricity, and this, at affordable cost. Beyond the need for additional capacity and grid extension, the two typical challenges of the electricity sector are high losses in transmission and distribution, and grid liability. Transmission and distribution losses are estimated to be roughly 10% (or more in many countries); they often result in either higher consumer prices or higher public expenses to cover utilities’ forgone revenue. Grid reliability is another critical factor and may pose a challenge if many EVs are being charged at the same time.
EV charging loads are anticipated to be very dynamic, with spikes in the demand curve. This can have a serious impact on the distribution network, especially in distribution areas with low available hosting capacity leading to voltage instability, harmonic distortion, power losses and unreliable supply. The impact on the grid can be minimized by introducing discounted tariffs for charging during non-peak hours like Time of Use (ToU) or Time of Day (ToD). Additionally, other EV charging management solutions like battery energy storage system (BESS), smart charging and vehicle-grid integration (VGI) can be used to mitigate the negative impacts of uncontrolled EV charging.
Trends in Renewable Energy and synergies with e-Mobility
In the past decade, renewable energy production per capita has doubled. Bhutan, which is standing out with the highest electricity production per capita in the world (3,026W), sells one hundred percent of their hydropower to neighbouring nations. China, the most populous nation on earth, is the leader in renewable energy. Its RE capacity per capita is 621W, which is 2.5 times the global average. China has six times the RE capacity per capita as India. In Sub-Saharan Africa,’s RE capacity per capita is at 38W.
Increasing renewables’ integration to the grid comes with challenges for the system’s stability such as boosting grid voltage (hampering performance of the connected power equipment like DTs by overloading), injecting harmonics etc. As a result of the intermittent nature of wind and solar generation, capital expenditure in equipment like inverters and storage is needed to reduce peak load, enhance power quality, and store excess power. Integrating storage with RE will increase implementation costs, which could impede the widespread deployment of RE. Employing RE for EV charging further requires additional grid infrastructure leading to increase in grid upgradation costs.
Conversely, integrating a greater proportion of RE sources to the grid for EV charging results in benefits like higher contribution to CO2 emission reductions; it can also help minimize grid impact challenges. RE with BESS can act as an ancillary support to the grid by storing energy during high RE output hours and supplying power during off-peak hours, enhancing system reliability and resiliency. It also provides reactive power that helps with voltage control thereby improving grid stability and minimize AT&C (aggregate technical and commercial) losses. When using V2X technology, batteries from EVs can act as BESS, supporting RE by storing power and reduce additional storage investments.
Opportunities for growing e-Mobility and RE in synergy
This section outlines opportunities at the intersection of both technologies, and presents various EV charging business models integrating RE. The business models (as shown below), look into different energy models, charging models, vehicle segments and applications.
Business Model 1Captive fleet charging with RE integration for PT e-Buses, ride-hailing, taxis (2W, 3W & 4W) and freight vehicles
Growth rationale
· Globally, there is an increasing shift to public transport (PT) bus systems, to drive operational and financial efficiency and increase fleet size with transition to e-Buses. Also, the ride-hailing freight services market is growing globally and making an economic case for their electrification.· PT e-buses, ride hailing taxis and freight vehicles having access to a dedicated depot in strategic city locations with ample spaces provide easy charging with RE integration opportunity· As the push to freight electrification grows, warehouses make most sense for charging, considering typical logistics profile of hub-and-spoke model or point-to-point, etc. and vehicle’s layover of ~5-6 hours during loading and unloading· Charging fleets with large battery capacities (for buses, trucks) demands more energy which makes a case for integrating with RE to help reduce load on the grid· Big roof tops as well as ground space in depots and warehouses provide opportunities for RE integration for charging. However, given size of fleet and required high MW level charging load (specially in case of e-Buses), captive RE alone may not be sufficient. And there will be a need for remote RE open access or trade offset.
Benefits
· Support peak shaving (reducing load on the grid during peak hours) using RE with BESS for charging thereby reducing grid investment cost required to manage peak demand·Reduce impact on the grid by reducing harmonics and voltage instability and thereby reduce losses in the system· e-Bus/e-Truck batteries provide good stationary RE power backup storage (as BESS) at lower cost given higher daily distance run and battery utilization thereby undergoing faster replacement
Limitations
· High investment cost when using batteries to store RE to power fleet overnight· Scheduling fleet to match charging pattern and RE generation requires suitable locations to install RE on site, alternatively remote access to the grid
Business Model 2Green Public EV charging integration with RE and BESS (including kerb-side charging)
Growth rationale
· Public Charging stations (PCS) gives visibility and confidence to EV users and help curb range anxiety· More and more PCS are getting integrated in existing matured commercial locations like fuel stations (intracity and highways), malls, restaurants, parking etc. These locations typically have real-estate for RE integration.· With many users doing planned home or office charging, more and more PCS use cases including kerb-side charging are moving towards quick opportunity or top-up charging.· Real-estate space at PCS and prevailing high electricity commercial tariffs makes a business case for RE integration. Depending on space availability at the site, 100% RE can be supported with a mix of captive, remote generation wheeled through green open access, and/or RE tradable certificates.· RE plus BESS combined with a grid makes PCS greener. It also reduces both its energy and demand charges. This further integrated with smart chargers will allow PCS operators to align pricing signals with utility given ToU/ToD tariffs and drive EV charging user’s behavioural change.· BESS using repurposed batteries from EVs could further make its deployment with RE more economical
Benefits
· Provides better grid stability and reliability by supporting peak load shaving (reducing load on the grid during peak hours) thereby reducing the required grid investments (in equipment like inverters)· BESS at PCS will provide the necessary back-up power system at the time of grid failure/ outages and act as an ancillary support to the grid
Limitations
· Requires considerable land/ space for deployment (which is a constraint in urban areas)· Need for smart charging solutions to better manage multiple EV charging which also calls for high investments· Low utilization of PCS affects the business economics
Business Model 3Utilities as integrated RE and EV charging as-a-Service provider for homes and offices
Growth rationale
· Both RE and EV economics to end-users are becoming attractive for end-users and their fast proliferation is causing high grid impact. Progressive utilities have hence started facilitating their customers to improve energy efficiency, behavioural or automated demand response (through use of ToU or ToD charging) and solar roof top generation.· In many countries, there is a growing trend of providing solar roof top (SRT) as-a-service (long term PPA) to residential and commercial customers as a RESCO model. Private utilities are playing increasing roles in extending this service to their customers.· Many utilities in the developed countries are extending the charging-as-a-service (CaaS) model to home and office customers, where they are extending investment and/or rebates and hence optimising national cost on public charging infrastructure.· EV charging shifts during high RE output hours for relatively low power e-2Ws and e-cars at home and offices through appropriate ToU and smart charging can optimise further end-user economics and also utility costs for grid expansion.· Low and middle income countries tend to have a high share of inverter and battery power backup systems at homes and offices. These storage assets can be leveraged to charge from captive SRT and then support EV charging later in the day or night. Increasing new power backup systems allowing such high loads (ACs, EVs) running through RE.
Benefits
· Managed and controlled charging can reduce the impact of EV charging on the grid
Limitations
· High investment for utilities to deploy smart technological solutions to monitor real-time integration of RE and EVs
Business Model 4Battery Swapping for Light EV Charging
Growth rationale
· Battery swapping allows the end-user to run EV with a swap battery· Battery swapping charging station is isolated for only swap batteries charging. This allows RE integration including captive at the fuel stations forming key locations to host battery swapping.
Benefits
· Attractive for vehicle operators as swapping does not require time, as charging does· In commercial fleets, it increases fleet utilization, improves logistics delivery timelines, and saves time· Allows separation of batteries and EVs ownership, thereby reducing upfront cost of EVs for the end-user· Provides high asset class business model for new energy operators through improved battery life, grid responsive charging and RE integration· Reduces investments in charging network and centralizes electricity consumption· Allows using batteries as a storage (in a managed manner) and to put power back into the grid· Addresses space constraints in urban areas as multiple batteries can be stack, using less space than parking for charging
Limitations
· High investment cost, high automation, and high inventory of charged batteries· Battery swapping stations demands high energy from the grid to keep the batteries charged round the clock· Need for standardization of batteries (with different technologies) for interoperability without hampering technology upgradation
Business Model 5DRE based Mini/Microgrid powering rural areas and EVs
Growth rationale
· Distributed Renewable Energy (DRE) based Mini/ Micro grids are a solution for supplying 24×7 electricity to many communities without adequate grid service· Financial viability of most mini/ micro grids requires strategies to increase electricity sales· Mini/micro grid need demand loads that can be time-shifted to periods when RE is available else to balance the demand-supply necessitates substantial storage facility· EV having a large on-board energy storage can provide base load to DRE mini/ micro-grids and potentially help mini/micro grid operators improve their economics and expand energy services· DRE based mini/ micro grid can potentially be an EV charging station like a battery swapping station that charges batteries during RE generation and then lease out these batteries to the EV drivers during operations allowing drivers to top up their EVs· DRE based mini/ micro grids can use sources like solar and biogas or even hybrid source of energy (like grid + DRE)
Benefits
· Provide access to affordable and reliable electricity and transport in underserved areas· Reduce loss and wastage of farm produce with increased access to transport· Provide base load to the mini grid improving economics for the operator and low-cost to the end-user· Encourage rural entrepreneurship by powering productive use applications like EVs· Ensure safety by providing power during night using battery storage· Support education by providing access to affordable transportation to schools/ colleges· Ensure seamless delivery of essential services such as healthcare, education (online learning) and internet connectivity due pandemic like situations
Limitations
·High investment cost for deploying minigrids and lack of financing support· Requires regular local maintenance support (skilling) to keep minigrid working for e-Mobility application
(The views expressed in this blog are from a Working Group Paper authored by pManifold team members developed for SUM4All and published at COP27)
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