Latest news with #CharithKonda
Time of India
15-07-2025
- Business
- Time of India
Evening peaks strain India's power grid; coal dominates 73% of supply despite solar surge: IEEFA
New Delhi: India's electricity demand hit a record 250 gigawatts (GW) in May 2024, up nearly 50 per cent from 167 GW in May 2021, driven by increased cooling load, growing industrial consumption, and rising residential use during heatwaves. Despite the expansion of solar energy, coal accounted for 73 per cent of daily power supply on peak days, according to the latest briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA).The analysis found that while solar generation has increased significantly, it does not meet demand during the late evening hours, leading to dual daily peak loads that stress the power system. Evening peak now rivals solar-hour highs On 15 May 2025, electricity demand reached 231 GW at 3 PM and remained elevated at 227 GW between 9 PM and 11 PM, the report said. IEEFA noted that these sustained evening peaks now nearly match the traditional afternoon peak, but solar power is not available after sunset, resulting in a continued reliance on thermal power. 'Electricity consumption by electric vehicles has grown nearly tenfold – from 59 million units (MUs) in FY2021 to 569 MUs in FY2024,' said Charith Konda, contributing author and Energy Specialist at IEEFA, South Asia. Storage, demand response key to managing post-sunset load IEEFA recommended accelerating battery storage deployment, hybrid solar-wind-storage projects, and demand-side measures to manage evening peaks. 'The persistent evening peaks reinforce the urgency of deploying storage solutions, demand measures and hybrid renewable projects,' said Saloni Sachdeva Michael, Energy Specialist and co-author of the report. The report also highlighted that on 15 May 2025, market clearing prices on the power exchange shot up to ₹10/kWh post 6 PM, driven by high demand and the withdrawal of solar supply. Time-of-day pricing could help shift usage IEEFA has called for more effective Time of Day (ToD) tariffs that widen the price differential between peak and off-peak periods to incentivise industrial and commercial consumers to shift usage to daytime hours. 'Incentivising load shifting from evening to day can help align demand with solar availability,' said Vibhuti Garg, Director, IEEFA South Asia. Focus on hybrid RE, battery storage, and import duty reform The study highlighted the importance of deploying battery energy storage systems (BESS) and pumped hydro to ensure round-the-clock power availability. It also called for cutting import duties on battery technologies and expediting PLI scheme disbursement to boost domestic battery manufacturing. 'Battery storage enables energy arbitrage by charging during near-zero-cost solar hours and discharging during high-demand hours,' said Kaira Rakheja, co-author and Energy Analyst at IEEFA. Demand from ACs, EVs, industry behind power surge India's rising power consumption is driven by increased use of air conditioners, electrification of transport, and commercial and industrial expansion, the report noted. In FY2024, industry accounted for 32 per cent, residences 31 per cent, agriculture 22 per cent, and commercial establishments 10 per cent of electricity consumption. The report also flagged upcoming demand from sectors like green hydrogen and digitised industries, underscoring the need for a flexible, low-carbon grid. Grid digitisation and cyber readiness crucial for future IEEFA underlined that along with physical infrastructure, digitisation of the grid, cybersecurity, and smart metering will be critical for managing two-way power flows and integrating rooftop solar and electric vehicles. 'As India's power demand continues to rise, grid flexibility, demand response, and clean storage will be central to ensuring supply stability,' the report concluded.
Time of India
28-05-2025
- Automotive
- Time of India
EV two-wheeler sales soared 34x in 4 years, but market share stuck at 4%: Study
Electric vehicle (EV) sales in India have grown rapidly across segments in the last decade, but adoption rates remain modest despite significant fiscal support, a new study by the Institute for Energy Economics and Financial Analysis (IEEFA) has found. The report, From Incentives to Adoption, presents a 10-year review (2014–2023) of government subsidies and policy interventions under FAME-I, FAME-II, Production Linked Incentives (PLI), and state schemes, and assesses their effectiveness across five EV segments. In the electric two-wheeler (E2W) segment, sales jumped from 19,333 units in FY2019 to over 6.5 lakh units in FY2023. However, the adoption rate – the share of electric vehicles in overall two-wheeler sales – was only 4% by the end of 2023. 'FAME-II's higher subsidy intensity (28.65%) compared to FAME-I (14.32%) boosted absolute E2W sales by up to 9 times, but had limited impact on the overall market composition,' the report states. According to Charith Konda, Energy Specialist at IEEFA and one of the co-authors, 'The government should continue offering purchase subsidies to sustain momentum but clearly communicate a phased-down trajectory for the longer term.' In the electric three-wheeler passenger (E3WP) segment, early policy support under FAME-I drove a 10x market multiplier effect. Around 27,000 additional vehicles were directly attributed to subsidies under FAME-I, with total sales reaching 2.67 lakh units by March 2019. The segment, however, matured during the FAME-II period and showed limited incremental impact from later subsidies. The electric three-wheeler cargo (E3WC) category saw a market share rise from 0.03% in 2015 to over 31% by 2023. The study found this growth was largely driven by operating cost advantages rather than central subsidies. A 1% reduction in operating cost led to a 0.563% increase in sales, highlighting the role of business economics in commercial segments. In the electric four-wheeler commercial (E4WC) category, sales improved after FAME-II and PLI schemes were implemented. A one-standard-deviation increase in subsidy intensity led to a 5% rise in sales. However, the adoption rate was still less than 1%. States that implemented incentives saw 211% higher sales growth than those that did not. For electric four-wheelers in the private segment (E4WP), sales grew due to new model launches and consumer demand, but adoption rates remained below 2%. The report highlights the need for continuing support in this segment. The report found that both FAME-I and FAME-II failed to make a statistically significant impact on electric bus (e-bus) adoption. Only 4,766 units were subsidised against a target of 7,262, and the sector continues to face structural barriers such as limited financing access and high upfront costs. 'Coordinated central and state action, pairing targeted purchase incentives, infrastructure rollout, and manufacturing scale-up can help electric cars compete effectively with their counterparts in India's commercial vehicle market,' said Saurabh Trivedi, Sustainable Finance Specialist at IEEFA. The study recommends continued fiscal support, investment in public charging infrastructure, interest rate subvention for buses, and targeted financing support for smaller commercial operators. 'As India transitions from FAME schemes to PM E-DRIVE and other similar initiatives, policymakers must recognise that each EV segment requires tailored intervention,' Konda added. The report draws on panel data of 21,526 observations over 10 years, offering a first-of-its-kind empirical assessment of India's EV subsidy performance using econometric techniques such as difference-in-differences and synthetic control methods.
Time of India
28-05-2025
- Automotive
- Time of India
EV two-wheeler sales soared 34x in 4 years, but market share stuck at 4%: Study
New Delhi: Electric vehicle (EV) sales in India have grown rapidly across segments in the last decade, but adoption rates remain modest despite significant fiscal support, a new study by the Institute for Energy Economics and Financial Analysis (IEEFA) has found. The report, From Incentives to Adoption, presents a 10-year review (2014–2023) of government subsidies and policy interventions under FAME-I, FAME-II, Production Linked Incentives (PLI), and state schemes, and assesses their effectiveness across five EV segments. In the electric two-wheeler (E2W) segment, sales jumped from 19,333 units in FY2019 to over 6.5 lakh units in FY2023. However, the adoption rate – the share of electric vehicles in overall two-wheeler sales – was only 4% by the end of 2023. 'FAME-II's higher subsidy intensity (28.65%) compared to FAME-I (14.32%) boosted absolute E2W sales by up to 9 times, but had limited impact on the overall market composition,' the report states. According to Charith Konda, Energy Specialist at IEEFA and one of the co-authors, 'The government should continue offering purchase subsidies to sustain momentum but clearly communicate a phased-down trajectory for the longer term.' In the electric three-wheeler passenger (E3WP) segment, early policy support under FAME-I drove a 10x market multiplier effect. Around 27,000 additional vehicles were directly attributed to subsidies under FAME-I, with total sales reaching 2.67 lakh units by March 2019. The segment, however, matured during the FAME-II period and showed limited incremental impact from later subsidies. The electric three-wheeler cargo (E3WC) category saw a market share rise from 0.03% in 2015 to over 31% by 2023. The study found this growth was largely driven by operating cost advantages rather than central subsidies. A 1% reduction in operating cost led to a 0.563% increase in sales, highlighting the role of business economics in commercial segments. In the electric four-wheeler commercial (E4WC) category, sales improved after FAME-II and PLI schemes were implemented. A one-standard-deviation increase in subsidy intensity led to a 5% rise in sales. However, the adoption rate was still less than 1%. States that implemented incentives saw 211% higher sales growth than those that did not. For electric four-wheelers in the private segment (E4WP), sales grew due to new model launches and consumer demand, but adoption rates remained below 2%. The report highlights the need for continuing support in this segment. The report found that both FAME-I and FAME-II failed to make a statistically significant impact on electric bus (e-bus) adoption. Only 4,766 units were subsidised against a target of 7,262, and the sector continues to face structural barriers such as limited financing access and high upfront costs. 'Coordinated central and state action, pairing targeted purchase incentives, infrastructure rollout, and manufacturing scale-up can help electric cars compete effectively with their counterparts in India's commercial vehicle market,' said Saurabh Trivedi, Sustainable Finance Specialist at IEEFA. The study recommends continued fiscal support, investment in public charging infrastructure, interest rate subvention for buses, and targeted financing support for smaller commercial operators. 'As India transitions from FAME schemes to PM E-DRIVE and other similar initiatives, policymakers must recognise that each EV segment requires tailored intervention,' Konda added. The report draws on panel data of 21,526 observations over 10 years, offering a first-of-its-kind empirical assessment of India's EV subsidy performance using econometric techniques such as difference-in-differences and synthetic control methods.
