Public-Private Partnerships in Expanding Delhi’s EV Charging Network

Delhi has emerged as the frontrunner in India’s EV revolution.

Delhi is adopting a public-private partnership for expanding EV charging networks. Delhi has implemented a PPP model which is unique in its structure, design process and the criteria used for bidding. This model has proven to be effective in accelerating the deployment of charging infrastructure, addressing range anxiety, and promoting EV adoption.In this article we will understand impact of public private partnership in expanding Delhi’s EV charging network.

What does it mean by Public private partnership in EV sector

Public private partnership in the EV sector is a collaborative arrangement between government entities and the private sector to develop EV infrastructure and services.can play a crucial role in driving the widespread adoption of electric vehicles and building a sustainable transportation future.

Key areas include charging infrastructure,research and development,financial incentives,policy development.

Infrastructure-Governments provide policy support, permits, and land allocation while Private companies invest in, build, and operate charging stations.Grid integration and load management responsibilities shared between them.

Research and development-Joint funding for EV technology advancements, such as battery technology, charging systems, and vehicle design.

Incentives-Joint funding for EV technology advancements, such as battery technology, charging systems, and vehicle design.

Private companies provide financing options, leasing, and other financial services.

Policy development -Governments create a conducive regulatory environment for EV adoption.Private companies contribute industry expertise and knowledge.

Key advantages of public private relationship (PPP)in EV industry

Private investment-PPPs bring in significant private investment to fund the capital-intensive development of charging infrastructure.

Efficiency-Private sector possess the technical expertise for EV network management.Enhances the overall efficiency of the EV value chain.

Accelerated Deployment-PPPs can expedite the development of EV charging infrastructure and related services.

Risk sharing-Financial and operational risk are shared between public and private sectors.

Innovations - Private sector involvement can foster innovation in charging technologies and business models.

Increased Investment-Attracts private investment into the EV ecosystem.

Challenges need to be addressed in PPP

Standardization - For seamless user experience interoperability between different charging networks and platforms is necessary which is achieved by standardization.

Grid integration-Grid planning and management is needed for managing grid electricity demand.

Policy framework- Clear and supportive government policies are essential to create a conducive environment for PPPs.

Delhi’s PPP model for EV charging network

Delhi government has set up a high-level working group for the accelerated rollout of charging infrastructure. It comprised the heads of all relevant Delhi government departments, municipal corporations, discoms and external experts, and was chaired by the Dialogue and Development Commission (DDC).This group led the process of developing a holistic EV-charging strategy for Delhi and proactively resolve any issues pertaining to the coordinated roll-out of charging stations in the city.

Some key features of Delhi’s PPP model

Service charge as a bidding criteria-Delhi kept the service charge for the end consumer as a criterion for bidding. The high appeal of the land parcels aggregated by the government, combined with a model conducive to business success, resulted in strong competition among private bidders to quote a low service charge. As a result, the Delhi government received negative service charge bids and Delhi’s EV users will be able to charge vehicles at just ₹2 per unit.Which is cheaper than anywhere else in the world.

Infrastructure development- Private partners are responsible for the development, installation, and operation of charging stations.

Strategic location-To ensure easily accessible EV charging stations, the government has identified strategic locations for charging stations.In Delhi, the government took the responsibility of putting together land parcels from different agencies to be rented out on a concessional basis to private players.

Technology adoption-Government encourages the use of advanced charging technologies to improve efficiency and user experience.

Risk sharing-The risks associated with the project are shared between the government and private partners.

Delhi government defrayed costs associated with upstream electrical infrastructure on each site and linked lease rentals to revenue, addressing two major costs that impede the business viability of charging stations. The Delhi government also looked beyond charging as a standalone business and encouraged the participation of stakeholders whose core business is aided by operating charging stations, such as fleet operators, power distribution companies (DISCOMs), battery-swapping operators, and vehicle and battery manufacturers.

Summing Up

Delhi's PPP model offers a promising blueprint for other cities in India to replicate and adapt.Delhi’s PPP model is accelerating the city's transition to electric mobility.