CESL's Innovative Approach: Private Partnerships To Turbocharge EV Charging Expansion
Convergence Energy Services Ltd (CESL), a subsidiary of Energy Efficiency Services Ltd (EESL), is set to initiate a tender next month to engage electric vehicle (EV) charging point operators in an effort to expand the EV charging infrastructure nationwide.
While CESL is actively increasing charging stations across the country through internal investments, it is contemplating a shift to an asset-light public-private partnership (PPP) model to expedite the growth of the charging infrastructure.
In the proposed PPP model, CESL plans to provide land and attract private investors to establish and manage charging stations on a revenue-sharing basis. Presently, CESL invests in equipment and other aspects when establishing charging stations and also maintains them. However, this current model seems financially challenging.
CESL aims to enhance the charging infrastructure rapidly to promote EV adoption by introducing a new model involving charge point operators (CPOs).
Under this model, CESL would enter agreements with land-owning agencies to offer lands to private EV charging operators. These operators would set up, manage, and generate revenue, with the earnings shared among CPOs, land-owning agencies, and CESL.
The company plans to invite bids from private investors, intending to finalize 3-4 players for different regions to expedite scaling up. CESL also intends to collaborate with State governments to secure land for CPOs through landowning departments. Currently, about 300 of CESL”s charging stations are operational, with an additional 150 in the commissioning process. According to a recent ICRA report, the total number of public charging stations surpassed 10,000 in 2022, up from 942 in 2021, and is anticipated to reach around 45,000-50,000 units by 2025.
CESL”s strategic move towards a public-private partnership (PPP) model signals a significant shift in the expansion of electric vehicle (EV) charging infrastructure in India. By planning to float a tender to involve private operators in scaling up charging stations, CESL aims to accelerate the adoption of EVs in the country. The proposed PPP model, where CESL provides land and private investors manage and operate the charging stations, presents a viable solution to overcome financial challenges associated with the current model. This innovative approach not only fosters collaboration between different stakeholders but also creates a new avenue for private investors to contribute to the growth of sustainable mobility. As CESL embarks on this transformative journey, the future of EV charging infrastructure in India appears promising, with the potential to reshape the landscape of electric mobility.
(Disclaimer: This story is based on a Press Release. Timeline. is not responsible for the claims made in this story.)
