Introduction

Electric Vehicles (EVs) are on a path to provide a clean, sustainable economically viable alternative to vehicles with internal combustion engines that use non-renewable fuel and are damaging to the environment. With a comprehensive policy guideline and implementation plans in place by the governments across the world to promote EVs and the Electric Vehicle Supply Equipment (EVSE), we can better our chances to achieve our climate goals. In addition, countries, especially in the developing world, will be able to deal with their current deficit problems by reducing their crude oil import bill alongside increasing their energy security.

In 2019, imported global crude oil purchases stood at 1.05 trillion USD. This number has risen almost 25 percent since 2015 when total crude oil imports were 841.6 billion USD. China, India and USA constitute 46 percent of total global crude oil imports. Details of total crude oil imports in 2019 can be seen in the figure 1 below.

Figure 1: Net Crude Oil Imports in 2019.

Consequently, these countries are at the forefront of the EV race in the world. In pursuit of their electrification goals they have rolled out various subsidies, tax incentives, grants and premiums which we will discuss by each country.

China

In China, the central government pursues development of charging networks as a matter of national policy. The policy focuses on targets, funding and setting standards for EVs and the charging infrastructure. In addition, provincial and local governments in China also promote the development of charging networks with financial incentives and include policies such as requiring residential building owners to have EV charging spaces.

The State Council has laid out policies for the promotion of EV charging infrastructure in five government documents. In 2015,

In 2016, A notice issued on ‘Accelerating Residential EV Charging Infrastructure Construction’ laid out standards and procedures for residential charging. Notice also designated Jing Jin Ji, Yangtze River Delta and Pearl River Delta regions as a demonstration zone for residential charging infrastructure.

Following the central government, provincial and local governments in China also promote deployment of EV Charging Infrastructure with financial incentives and laying out New Building Construction Policies.

The problem with the spike in the charging fee is that EV drivers are highly price sensitive where EV rental agencies complain that high charging rates keep rental volume low inhibiting rental agencies from making money.

In 2014, the NDRC clarified the EV Charging rates for three classes of customers. Residential charging pays residential rates which are usually the lowest tariffs. Dedicated central EV Charging and battery swap stations pay the large industrial customer rate but are exempt from basic (demand) charge. Where Government offices, public parking lots and other businesses pay the commercial and small/medium industrial (C & I) rate which is usually the highest tariff.

USA

The United State Federal government is a minority player in the development of EV charging infrastructure. State and local governments have a larger role.

The Federal Government’s Incentive Policies are:

As of Sept. 2020, there were over 100,000 Level 2 and DC fast EV chargers in 32,470 stations across the U.S. This number does not include-residential charging units. Fast chargers add 60-80 miles of range per 20 min. of charging.

Included in the number above are the charging stations of Tesla. Currently having 16,320 stations globally, 44% of those are located in the US, and 15% in China. Each Tesla charging station has an average of 8 chargers.

India

As of 2019, oil imports stand at 103.9 billion USD and the central government of India intends to reduce its oil import bill to 40 billion USD by 2030 though widespread dissemination of EVs in the country. The target number of electric vehicles was lowered in Feb. 2018 to be 30% of all vehicles, but the two-wheelers will be electric by 2026.

Under the Electric Vehicle Policy, Power Ministry intends to cover 4 million plus population cities in the first phase. In second phase it plans to cover all state capitals, union territories, major highways and key cities.

• In a grid of 3 by 3 km, at least one public charging station will be setup in urban areas.
• For highways at least one fast charging station is planned for every 100 km, as per India’s Power Ministry’s policy statement.

In April 2019, Power Ministry announced that charging of electric vehicles is not a licensed activity and will be considered as a service. The delicensing ensures anyone can setup a public charging station in the country although they have adhered to the set international standards of EVSE.

Figure 3: Installed of public EV charging points in India.

Moving Forward

As can be seen in the figure 2 that public charging installed capacity in case of UK, USA and China is seeing a steady growth with a slight slowdown in 2020 because of the pandemic. The pandemic has been a double-edged sword with regards to electrification globally in ways that it has reinforced need for sustainable future but at the same time shrunk the fiscal space needed to pursue such policies.

Figure 2: Installed capacity of Public EV Charging Points 2014-2020.

Where India on the other hand has been very late in the EV race and it is yet to be seen how its EV landscape develops over the years. Though there has been a yearly increase in the public EV charging capacity from 2014 onwards as can been in the figure 3 but it is nowhere in comparison with the installed capacity of USA, UK and China.

Governments in these countries are actively indulging in public private partnerships to enhance the EV Charging Infrastructure. Where other than possibly China, it is expected that countries would expect and let the private sector completely take over in the later market stages.

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