The Importance of Public-Private Partnerships in Promoting EV Charging Stations in Bangalore
Public charging infrastructure is a key to growing the electric vehicle market.Because the gap between supply and demand of charging infrastructure is broadening increasingly, the charging infrastructure industry must undergo an explosive growth, which has been reflected in the government’s strategic plan. In recent years, the central government has issued several relevant policies to support the construction of the electric vehicle charging infrastructure.
What is public private partnership
Public-Private Partnership (PPP) is a long-term contract between a public party and a private party, for the development and management of a public asset or service, in which the private party bears significant risk and management responsibility through the life of the contract.PPP may offer a promising way forward and accelerate the development of charging infrastructure by tapping the private sectors’ financial resources and professional skills.
A public private partnership (P3) is a contractual agreement formed between public and private sector partners, allowing more private sector participation than is traditional. The agreements usually involve a government agency contracting with a private company to design, renovate, construct, operate, maintain, and/or manage a facility or system.” In P3s, the private sector performs all or some of the functions normally undertaken by the government, but the public sector retains legal ownership of the facility.
Bescom to set up charging stations under public-private partnership model.
Bangalore Electricity Supply Company Ltd decided to set up 63 charging stations under a public-private partnership model.The charging stations will come up in Bengaluru Urban (10 locations), Bengaluru Rural (21), Ramanagara (7), ..Tumakuru (6), Kolar (7), Chikkaballapur (6), Davanagere (2)and Chitradurga (4).In the 2021-22 state budget, Bescom had proposed to set up more than 1000 EV charging station across karnataka under PPP model.“The selected firms will establish, operate and maintain them for 126 months at these locations.The firms can install more units based on space availability and demand.Many EV owners welcomed the move “More stations will encourage more motorists to shift to environment friendly, battery-run vehicles.
Other factors where Public-Private-Partnership model seems a viable option
companies who are looking to invest in changing infrastructure in urban locations which is financially viable, but in case of rural and semi-urban locations, the situation is completely reversed.This is because of following reasons
Financial factors - In India, electricity is billed at differential rates for agricultural purposes in rural areas and for residential and industrial purposes in urban locations. Hence, pricing of electricity for charging the vehicle at public charging stations remains a challenge, as rural residents would prefer to charge their vehicles from agricultural lines, which is cheaper rather than from a public charger which would be at a higher price.
Demographic factors -Electric vehicles have software systems to run it and optimize battery operations, some amount of digital literacy is required for their functioning. There may be a challenge on this front, as the rural population’s digital education is less as compared to urban population.
Low vehicle density– Rural areas are mostly dominated by scooters/motorcycles, tractors, trucks and tempos when compared with cars and auto rickshaws. Converting those vehicles into electric is a long drawn process.
Geographical limitations– Due to the expanse of the rural areas, it is nearly impossible to have public charging stations as present in between the villages and towns.
In this situation the Public-Private-Partnership model seems a viable option where government engages and encourages private players to supply charging infrastructure and install public charging infrastructure in the rural and semi urban locations.
Summing up-Transition from ICE to electric vehicles is midway,it will take time to achieve.Government had to push to create a network across the country. As electricity is readily available and running cost per km is significantly lower than ICE vehicles.to achieve the EV30@30 target the government will have to take private players together and help them create a seamless charging infrastructure on the roads leading to villages of India.a report by India Ratings and Research earlier this year said that public-private partnership model for operating electric vehicles, especially buses, will help state transport undertakings deploy more such zero-emission vehicles in the coming years.
