Setting up a Public EV Charging Station in India – Considerations and RoI estimate

  • Major components of charging infrastructure
  • Considerations while planning an ev charging business
  • Cost and RoI estimates

Major components of EV charging infrastructure planning are land/location identification, planning electrical infrastructure and civil work, selection of EV charging hardware, CMS and mobile applications software as well as making arrangements for services and maintenance.

While setting up a Public EV charging station (PCS), the following aspects need to be considered and planned:

Location – Strategic location and area selection is critical. Minimum 300 to 500 sq foot area is required to offer parking space for 3-4 cars simultaneously.

DISCOM feasibility – Includes feasibility study and clearances with the electricity DISCOM in the area. Coordination with the DISCOM is required:

– To get an EV tariff meter at the selected location, which could take 15-20 days from the date of application. Additional documentation such as NOC from the land owner may be required. There should be proper agreement between land owner, PCS operator & DISCOM for Tariff meter installation.

– Obtain sanction for necessary load requirement. DISCOM will consider the availability of nearest transformer for the load requirement at the PCS. Depending on the load, additional transformer could be required.

– Operator will need to pay a security deposit on load sanction

Site layout and execution – Includes study of the site and decisions on how the necessary physical infrastructure will be installed. Laying of cables, placement of chargers and installation of safety equipment like circuit breakers.

Plan EVSE hardware – The current Ministry of Power guidelines allow flexibility in choosing the number and type of chargers (AC-001, DC-001, Type 2 AC, CCS, CHAdeMO) based on market requirement. The operator needs to decide which (all) and how many charging points they plan to install and where to procure the same. Integration of EV charger to cloud based server.

Plan software OCPP enabled central management system and mobile application for end users that help them locate chargers, reserve slots and pay for the service. Internet services are required to enable communication with backend systems. The Integration with utility systems may vary from case to case.

Service & Maintenance – The EV chargers comes with standard AMC (Annual maintenance contract) package. Once the infrastructure has been set up, maintenance schedule for the chargers needs to be followed.

Public EV charging business model

Layout of a public ev charging station
Source: Volttic EV Charging Solutions

Estimates refer to planning a PCS with the following EV chargers:

Bharat AC01 – 1 unit with 3 charging guns (3X3.3KW) for 2W-3W- 4W

Bharat DC01- 1 unit 15KW for 4W

CCS2 DC 50KW – 1 unit with 2 charging guns – for 4W (Nexon EV, Kona electric, MG ZS EV)

AC type-2- 7.4KW – 1 unit for 4W. As of today, we do not have vehicles in India that support 22kW type 2 AC charging.

Total Load requirement – 82.3 kW

Investment estimate for the PCS

Investment estimate for setting up a PCS
Source: Volttic EV Charging Solutions

Total CAPEX – INR 16,48,250
Total OPEX over 5 years – INR 31,61,220
Total CAPEX+OPEX in 5 years – INR 48,09,470

EV Tariff Components

Though the government does not control the end user tariff, it has been observed to vary from 12-15 INR to 18-22 INR/KWh depending on the PCS and the state of operation.

Conclusion

Utilization is the key to running a profitable PCS.

Considering the profit margin of INR 3.5 per unit and daily utilization of 8 hours of the sanctioned load i.e approximately 640 kWh per day in our case for 26 days in a month – the hardware cost can be recovered in 3 years time and the RoI will be achieved in the 7th year of operation. It is therefore advised to not rely on only providing public charging service private vehicles, but the PCS owner should strongly consider making arrangements with corporates or commercial EV fleet operators for minimum usage per day for quicker RoI.

At 16 hours of utilization of sanction load per day, the RoI can be achieved in the fourth year of operation. The PCS operator can explore additional avenues for revenue generation by offering services such as advertisement placements or refreshments at the charging station if the space/layout allows.

About the author

Bapu Sangle ✓

Bapu Sangle represents Volttic EV Charging Solutions – one of the leading charge point operators in the country. Mr Sangle can be reached at bapu.sangle@volttic.com.

This write-up is based on a presentation made during EV Charging Business Conclave 2021. Get access to full session recordings here.

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