Fortum Charge & Drive India joins hands with DLF to set up charging infrastructure in DLF Cybercity Gurugram 29 September 2022
Charging StationsFeatured Post What is the cost of setting up an EV charging station in India? Cost of setting an EV charging station in India varies from Rs. 1 Lakh to Rs. 40 Lakhs depending on the type of chargers you install at the station. By Arjun D Pawar 1 April 202192298 views ShareTweet 177 Cost of setup Electric Vehicles Charging Station in India First and foremost, the Indian government has made it clear that any individual is free (de-licenced) to set up an electric charging station throughout the country, provided the station meets the standards of the power ministry. So, if you are planning to set up your own EV charging station, you just have to follow the minimum infra requirements and find the right vendor and the right location. Understanding Types of Electric Vehicle Chargers There are various types of EV chargers; Level 1 is the basic one with slow charging speed. The most popular is the Level 3 type charger, which uses DC current and has fast charging speed. Step-by-step Guide for Setup of EV Charging Station in India Understanding the worthiness of investing in an EV charging station Government initiatives Costing for setup Charger cost Electricity & Software cost Infrastructure cost Manpower & Maintenance cost Advertising cost Infrastructure setup requirements Business Revenue Model Is it Worth Investing in setting up EV Charging Station in India? As per the infrastructure guidelines set by the government, it is compulsory to set an EV Charging station at every 3km in cities and 25kms on Highways on both sides. For long-range and heavy-duty vehicles, there should be a charging station at every 100kms on both sides of the road (mostly Highways). Also, India working on developing Delhi to Mumbai electric highway to boost industrial transport. At present we are nowhere near the guidelines set (as there are almost negligible EV charging stations in India) and we can see there is a HUGE requirement of charging stations at the moment. We can see the requirement is huge but is the demand really there? Well, the answer is YES (in metro cities like Bangalore, Delhi, Chennai, Hyderabad, Mumbai & Pune). Indian Government initiative for Electric Vehicles Government Initiatives Under the implementation of FAME scheme Phase 2, Government of India is planning to install around 1000+ Electric Vehicle charging stations before 2023 and has already asked for bids from companies. Various state governments are giving subsidies on EV Charging Station. Cost of Setting EV Charging Station in India: Cost of setting EV charging station in India varies from Rs. 1 Lakh to Rs. 40 Lakhs depending on the types of chargers and investment one is willing to make. However, considering a broader scenario and a supply of 250KVA EV Station below is the estimate. Charger Type CCS – 60kW CHAdeMO – 60kW Type 2 AC – 7/22kW Bharat DC-001 – GB/T Bharat AC-001 Approximate Cost 12,50,000 12,50,000 1,00,000 2,40,000 60,000 New Electricity Connection (250 KVA): 7,50,000 /- Civil Works: 2,50,000 /- EVSE Management Software + Integration: 40,000 /- Technicians, Manpower, Maintenance etc: 3,50,000 /- yearly Advertising and Promotion: 50,000 /- Land Lease (if the land is at lease): 6,00,000 /- yearly Total Approximate: Rs. 40,00,000 /- (First year including setup and if the land is at lease) Annual maintenance from the second year: Rs. 10,00,000 /- (Including land lease) Nikol EV to setup 5000 chargers by 2025 Minimum Infrastructure Requirement for EV Charging Station A transformer with subsequent substation must be installed along with safety equipment For the purpose of metering/ termination, there should be a 33/11KV Cable with related equipment Appropriate Civil works should be there There should be adequate space for charging and Entry / Exit of Vehicles Necessary local certifications, if any required. (Varies state to state) Understanding the Business (Revenue Model) Revenue projections are something which we do not have control on. But we can assume a scenario and work out a feasible projection for the next 5 years. If we take the above investment of Rs. 40 Lakhs, we get approximate of 500-1000 kWh per day EV power for consumption. Considering Electricity Utilization of (for 360 days and a fixed margin of Rs. 10 per consumption). 600 kWh per day for 1st year: 600 x 360 x 10 = 21,60,000/- 600 kWh per day for 2nd year: 600 x 360 x 10 = 21,60,000/- 600 kWh per day for 3rd year: 600 x 360 x 10 = 21,60,000/- 800 kWh per day for 4th year: 800 x 360 x 10 = 28,80,000/- 1000 kWh per day for 5th year: 1000 x 360 x 10 = 36,00,000/- Total Revenue for 5 years: Rs. 1,29,60,000 /- EVSE software management FEE of 5% on margin: Rs. 5,94,000/- Revenue for 5 years comes as Rs. 1,23,66,000 /- (Excluding the EVSE software management fee) Note: Central government and various state governments are giving subsidies on EV charging stations. Conclusion Although there are only 2% EVs in India as compared to traditional vehicles, the sale of EVs are going upwards and the requirement for charging stations is rising daily. If you have the investment capacity and are willing to become an entrepreneur with a broader vision, then the answer is YES. Now is the time to invest in Future, to invest in EV Charging Stations. Interested in setting up your charging station business in India? Visit EV Business Opportunity.
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Fortum Charge & Drive India joins hands with DLF to set up charging infrastructure in DLF Cybercity Gurugram 29 September 2022
