There is an EV boom happening in Europe, but it is far from a market dominating the world. As a result, government subsidies have been cut in recent years. While the US and Canada are now phasing in more stringent standards, China and India still have far lower standards. The market in China is booming thanks to promotional measures and large-scale funding for charging infrastructure, but there are some signs of over-subsidization in the region.
California, along with other states, has been leading the way in PEV policy, with ambitious targets for zero-emission vehicle sales by 2030. Under the state’s Executive Order N-79-20 and B-48-18, automakers are required to sell a certain number of zero-emission vehicles by 2030. The vehicle sector is a major contributor of greenhouse gases and pollutants, and accounts for more than one-third of all emissions in California.
To help promote the transition to EVs, California’s legislature passed Senate Bill 1000. It directed the CPUC to develop strategies for easing the transition and minimizing demand charges. But what exactly does this mean? The proposed rules have left the door wide open for private, non-profit operators to set up charging stations without a special license. They also encourage landowners to open charging stations in their neighborhoods, allowing them to earn revenue through a revenue-sharing model.
Regulatory frameworks are not yet well-developed, but the government’s goal is to make EVs affordable. However, this means a massive shift in vehicle usage and policy is needed to reach the target. While governments and automakers have been working to make EVs more affordable and accessible, it will take years to significantly reduce greenhouse gas emissions. Meanwhile, gasoline-powered cars will remain on the road for decades before their end of life.
Fortunately, government policymakers are also helping to reduce the upfront costs of these vehicles. By requiring the use of a battery, the government is reducing the price of these vehicles, which will help make them more affordable for consumers. Further, the NITI Aayog has issued a new handbook on setting up charging networks for EVs. The handbook outlines the standards and policies required to build and maintain electric vehicle charging infrastructure.
The most common form of charging an EV is from a regular 120-volt outlet. While most EVs can charge using a 120-volt outlet, charging a 240-volt outlet will allow a quicker charge. PHEVs can charge almost exclusively on electricity, while others still require a dedicated 240-volt outlet. Some PHEVs also burn gas in their engine to provide additional power. These hybrid vehicles are known as “blended mode” vehicles.
As the government pushes towards a more clean mobility future, EV policies are becoming more investor-friendly. For example, a recent CEEW-CEF study found that EV policy changes have increased investment by up to $180 billion in the country. The study also found that EVs will save the country about $60 billion in fuel costs by 2030. Further, charging an EV will be as easy as charging a mobile phone at home. If this trend continues, India could be on the verge of an electric mobility revolution.