Is it right time to start Ev Charging Station ?
7 July, 2022
Early setup have good reason to run EV Charging station, even lesser number electric vehicles are now on Road.
- SUBSIDIED POWER AVAILABILITY : Presently Subsidised Power tariff are offered for Public Charging stations (PCS) . Almost all DISCOM in India providing power for PCS, at subsidised rates varies state to state from Rs. 5 to 8 per unit. These tariff will applicable till Government think its promotional effort achieved sufficient number of PCS .The Government also fix upper cap on tariff that a CPO will charge from EV owner for juice up EV .Such benefits are good for a new Charge Point operator( CPO), even lesser number EVs are running on road .
In coming years ,Government will attach condition to in-source Clean energy at public charging station. The rational of such condition are (i) clean mobility must be juice-up by Clean energy (ii) to dilute extra load on Grid created by charging Infra. The Government will Bring stringent tie up condition before to set up a Public charging station to produce /procure equal matching power requirement from clean energy sources. Either at charging Station based solar Carport /rooftop/ remotely ground mounted or tie up with other clean renewable energy producer.
- LATER ENTRANT HAVE TO FACE COMPETITION: Later entrant CPO have to come up with more better plan , otherwise nearby existing CPO will not let cater juicing up EVs. The existing CPO, by virtue of their sitting position, settled Brand , experienced seamless operations, put across a bench mark which is tuff for a New entrant at nearby location. Later entrant will have Lesser availability of suitable Pre-existing supplementing Location (PSL).
- STIFF GOVT NORMS AHEAD : For faster adoption of EVs & Charging Infrastructure ,the Central Government had launched FAME Scheme (MoHI), Easy Government norms to setup Public Charging Stations by MoP- 14.12.2018 ,New Building Bylaws by MoHUA , lowest 5% GST on Chargers ,Cheaper Power for Charging Stations & other privilege/relaxation has been given so that charging Infrastructure Industry may grow easily & adopted by masses . Once this industry reached at maturity level , Government will start to withdraw all privilege & relaxation given on that behalf, for Industry may sustained itself & to protect it from unscrupulous business doers.
- MORE CAPITAL REQUIREMENT IN FUTURE: In future, Prices of DC Fast chargers (DCFC) will remain more or less same, more advance DC Fast chargers will take place for less efficient and lower specs , this synergy will keep prices at same level( same as seen in Mobile phone Industry ).
To cope up upcoming Ev cars with advanced C-rate Battery & BMS , a Charge Point Operator (CPO) must have to deploy many fold higher than present (50 kwh) capacity DC Fast Charger (same as TESLA 100 Kwh needs 250 Kwh Chargers).To set up Chagrining station in coming years , one have to deploy Such advance & higher (spec-Kwh) DC Fast chargers & matching higher associated Power equipments , The minimum cost of set up EV charging station start from Rs 25 Lacs at present ,year 2022. while present CPO will deploy such higher DCFC as an vertical expansion programme. Also cost of Approval will be higher side, if PCS be set up at a Fresh Land Location, may have requires as much as 8 number Approval as compare to only One if set up at Pre-existing Business Premises.
5.LATER ENTRANT WILL HAVE LESSER AVAILABILITY OF PREFERRED LOCATION :The Importance of set up starting Charging station early is good enough for grabbing the opportunity & maximise the potential outcome. Early Bird gets the worm, this Rule also applicable on Business prudency ,so for Charging infrastructure business too. Location at premises which are supplementing nature to Charging stations business are most desirable. Once the suitable Pre-existing supplementing business are occupied either on Highways or within cities, it will be more tuff to find favorable locations . Also unsuitable / non supplementing premises will create hardship to achieve viability. While creation of such favorable/ supplementing premises from scratch (ab initio) will involve many number of Approval ,fees & time , even up to 8 No. approvals /NOC are required while at a existing premises, it needs only one or two approval.
6.BRAND BUILDING OPPORTUNITY: Brand building by words of mouth and online presence on Google map is most common in this business parlance . The USP created by present service specification of DC Fast chargers, ambience and other facilities experienced by EV owners will help in Brand Building .A CPO will create ,make Brand Building and enjoy it in tandem as continue process. New startup also learn by present experience to create more seamless operations that will help in demand creation by popularity among the mass result for good ROI.
- SCOPE FOR EXPANSION: The existing CPO will have privilege & opportunity for vertical or horizontal expansion, which would otherwise not available to new entrant. It is a continuing process at a charging stations to updating itself (to match upcoming EVs) either by additional deployment or replacing by upgraded specs of DCFC . At many instances, the old & lesser spec DCFC shifted from the existing charging station to a new opening. By doing so, it helps for up-gradation at existing station & opening another stations at sublime cost. By virtue of sitting position, the opportunity & privilege is there for an existing CPO. On flip side, there is a hardship for a new entrant to match the number & specs of DCFC at a particular or nearby charging station .
8 .TAKE OVER & CONSOLIDATING: Take over either for expansion or friendly, both are good for Business growth .In Business parlance, consolidating is a must feature when Industry move towards maturing phase. Consolidating brings many new opportunity ,collective benefit for a win-win situation for both parties.
By Team EV Charzo ( check out “Pre set up consideration survey” part of our Detail project Report on Set up Ev charging Station)