An Economic Feasibility Study of Electric Vehicle Charging Stations in India

Abstract

To address the ever-increasing issue of greenhouse gas emissions, reduce dependence on crude oil, and increase in fuel prices in the Indian context, electric vehicles (EV) are considered a possible solution in a long run. With incentive schemes initiated by the Government of India (GoI), the adoption of EVs is happening on a large scale. A core requirement for the mass adoption of EVs is the availability of charging infrastructure at an affordable rate and without intermittency to relieve range anxiety. However, the deficiency of public charging infrastructure is considered a major hindrance to a wide-scale adoption of EVs. This paper elaborates on factors affecting the location of charging infrastructure and highlights the existing EV charging standards in India. Also, the economic feasibility of establishing an electric vehicle charging station (EVCS) as per the standards and guidelines prescribed by the government is carried out using the net present value (NPV) method. With careful planning, establishing slow as well as fast EVCSs at existing parking stations with nominal parking fees at retail spaces, workplaces, street parking areas, and along highways can encourage extensive use of EVs, leading to a profitable business opportunity.