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Charging Infrastructure for Electric Vehicles: Regulatory Framework

The revised consolidated Guidelines and Standards for Charging Infrastructure for Electric Vehicles (“EV”), which came into force on January 14, 2022 (further amended on November 7, 2022, and April 27, 2023) (“EV Guidelines”), superseded the Charging Infrastructure for Electric Vehicles – Guidelines and Standards issued by the Ministry of Power on December 14, 2018. In addition to enumerating the infrastructural requirements for charging stations, the EV Guidelines also emphasize the importance of compliance with safety regulations issued by the Central Electricity Authority.  The EV Guidelines allow EV owners to use their existing electricity connections in their residences or offices to charge their EVs. It also specifies that the business of setting up public charging stations is not restricted to a limited group of individuals or entities and any individual or entity is free to set up a public charging station, provided that all the technical, safety and performance standards laid down in these EV Guidelines as well as the norms and standards laid down by the Ministry of Power, Bureau of Energy Efficiency and Central Electricity Authority, from time to time are adhered to. We have compiled a set of frequently asked questions summarizing the latest EV Guidelines.

Q1: What are the various categories of EV charging stations?

A1: As per the EV Guidelines, EV charging stations are categorized as:

Public Charging Station: These stations enable any electric vehicle to get its battery recharged.

Captive/Private Charging Station: These stations are exclusively for charging electric vehicles owned or controlled by a station’s owner, such as Government departments, corporate houses, bus depots, or fleet owners. These charging stations cannot be used for charging other vehicles commercially, on a paid-for basis.

Semi-Public Charging Station: These stations can be set up in housing societies, malls, office complexes, restaurants, hotels, and other public places, but only for permitted visitors who are allowed to use such charging stations.

Q2: What are the essentials that a private charging station must follow to maintain its private character under the EV Guidelines?

A2: To maintain its private character, a private charging station must ensure that such charging stations are used exclusively for in-house or captive purposes and are not used commercially to charge other vehicles, on a paid-for basis.

Q3: What are the key compliances that public charging stations must adhere to?

A3: The key compliances that public charging stations must adhere to, as outlined in Rule 3 of the EV Guidelines, include:

  • having an exclusive transformer and related substation equipment, if required by the Supply Code[i] of the relevant state in which the public charging station is being set up;
  • undertaking appropriate civil and electrical works for safety;
  • providing sufficient space for charging and entry/exit of vehicles;
  • installing appropriate fire protection equipment and facilities;
  • installing any combination of chargers as mentioned in the EV Guidelines, however charging stations for two/three wheelers are free to install chargers of any combinations subject to compliance with technical and safety standards laid down by the Central Electricity Authority;
  • partnering with at least one Network Service Provider (NSP)[ii] for remote/online booking;
  • sharing data with the State Nodal Agency (in each state in India), as per protocols prescribed by the Bureau of Energy Efficiency. While the protocols are not specified by the Bureau of Energy Efficiency, such protocols may include data such as location, types and number of chargers installed;
  • adhering to the provisions of Central Electricity Authority (Technical Standards for Connectivity of the Distributed Generation Resources) Amendment Regulations, 2019 which establishes standards for charging stations to follow when seeking connectivity to the electricity system/electricity grid and the Central Electricity Authority (Measures relating to Safety and Electric Supply) (Amendment) Regulations, 2019, which establishes  safety requirements for charging stations, including aspects such as earthing protection, fire prevention, and the standard of hardware components used in such stations;
  • conducting periodic type testing of the electric vehicle supply equipment (i.e. the equipment used to supply electricity to EVs) by National Accreditation Board for Testing and Calibration Laboratories (NABL) -accredited agencies;
  • offering the feature of prepaid collection of service charges from the consumers with time-of-day rates (i.e. different electricity rates for solar and non-solar hours) and solar-hour discounts.

The EV Guidelines explicitly provide that captive/private charging stations (charging stations for internal use of a company’s own/leased fleet) do not have to comply with the above requirements.

Q5: Has the Government provided any subsidy on electricity that is supplied by DISCOMs[iii] to the EV charging stations?

A5: The electricity distribution companies (“DISCOMs”) have been prescribed to supply electricity to public charging stations at 0.8 times the average cost of supply during solar hours (9 AM to 4 PM IST) and 1.2 times the average cost of supply during non-solar hours. To avail these special tariffs, a separate metering arrangement is required for such public charging stations.  However, domestic charging tariffs will apply to the consumption of electricity for private/captive EV charging stations (including charging of the EV fleet owned by the charging station owner).

Q6: Does the charging of EVs through charging stations qualify as a provision of service or supply of goods?

A6: The Ministry of Power has recognized the provision of facilities for charging electric vehicles through charging stations as providing a service.

Q7: Are there any restrictions/limitations on the service charges that public charging stations can impose on the public?

A7: The State Governments, upon the Central Electricity Authority’s recommendation, will fix the ceiling limits on the service charges that may be imposed for providing charging stations as a service.

CONCLUSION:

In a concerted effort to advance green energy adoption and to diminish India’s reliance on crude oil as a primary fuel source for vehicles, the Government of India has taken proactive measures to endorse and bolster the EV industry. This commitment has opened up the potential for EVs to become not only widely accessible but also affordable for the masses. The Government’s commitment is evident through its launch of various initiatives, such as Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) (since 2015, in two phases FAME-I and FAME-II), designed to incentivize EV purchases and facilitate the expansion of charging infrastructure.

Various State Governments in India are also actively working to position their respective states as leaders in the EV revolution by introducing several incentives, schemes, and discounts related to various aspects of the EV ecosystem. Further, to render the setup of public charging infrastructure more lucrative, the EV Guidelines allow Government and public entities to offer land for setting up public charging stations on a revenue-sharing basis with other Government/public entities at a certain fixed rate. This revenue-sharing model may also be adopted by Government and public land-owning entities when providing land to private entities for the installation of public charging stations through a bidding process.

These multifaceted efforts, including the EV Guidelines and various incentives, underscore the Government’s acknowledgment of its pivotal role as a catalyst in India’s transition to EVs. It is a resolute commitment to supporting and inspiring the public’s transition to the EV way—a pathway that holds great promise for a greener, more sustainable future.

Authors : Rohit Dhingra, Aishwarya H

Publication Date : October 12, 2023

Endnotes


[i] The Supply Code, as mandated by Section 50 of the Electricity Act, 2003, refers to the electricity supply code established by respective State Governments to provide for recovery and billing of electricity charges, disconnection of supply of electricity for non-payment, restoration of supply electricity and other related matters. For example: Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulation, 2017.

[ii] Network Service Providers are the intermediaries/service providers that facilitate EV owners to discover public charging stations through mobile applications.

[iii] DISCOMs are the power distributing companies that procure electricity from the electricity generating companies and sell it to consumers.