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

2. 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

3. 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

4. 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
Business of charging promises significant returns – estimated Rs. 42,000 crore by 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

5. 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.

6. 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

7. 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

8. 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

9. Thank You
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