EV charging infra lags as power tariff talks stall

Panaji: Companies that showed interest in setting up Goa’s electric vehicle (EV) charging network are struggling to get power supply to charging points that were installed over a year ago.

The concerns, which were raised last Nov, remain unresolved, with the power department stating that installation of the remaining EV charging stations will commence only after the challenges regarding electricity connections and costs are ironed out.

The primary concern for EV-charging infrastructure companies is the low tariff of Rs 13.3 per kWh for vehicle charging set by Goa Energy Development Agency (GEDA). When factoring in the revenue-sharing model (Rs 1.7 per kWh), the companies are left with only Rs 11.2 per kWh, significantly lower than the Rs 20-25 per kWh that other states offer.

“Installation charges, charges of discoms, and charges of operations and maintenance will be borne by the agency. After covering these expenses, the agency will have only a small amount of revenue remaining,” said Mahatma Phule Renewable Energy and Infrastructure Technology Ltd (MAHAPREIT) in a letter to GEDA.

MAHAPREIT, Indian Oil Corporation Ltd (IOCL), and Convergence Energy Services Ltd (CESL) are the companies that have tied up with GEDA to set up EV-charging stations. All three companies are public sector units that report to the Centre.

“MAHAPREIT, IOCL and CESL have not installed any EV-charging pods in the locations assigned by GEDA because they have raised issues regarding electricity connections and tariff,” said power minister Ramkrishna ‘Sudin’ Dhavalikar.

Before installing the EV chargers, the three firms must sign an agreement with GEDA. The companies are requesting GEDA to remove certain charges, such as Rs 0.7 per kWh for land rentals and Rs 1 per kWh for GEDA charges, or a higher tariff of Rs 16.7 per kWh to make the projects viable.

They also seek concessional rates for electrical connections and support from Goa govt in securing demand notes at lower rates to ease the financial strain.

“We kindly request your consideration of the fact that the installation of EV chargers involves substantial investments, particularly in substation infrastructure. The current high electrical installation costs could hinder efforts to expand EV coverage under Goa state,” an IOCL official said in a letter to GEDA.

Despite installing fast EV chargers at 10 retail fuel outlets and making significant financial investments, IOCL is still awaiting govt confirmation on the availability of the power required at six of the 10 outlets.

Stay updated with the latest city news, Air Quality Index (AQI), and weather updates for major cities like Delhi, Mumbai, Noida, and Bangalore on Times of India.