In a statement, the power ministry has clarified that there is no requirement to get a separate license for setting up of a charging station for electric vehicles (EV) under the Electricity Act of 2003. This will give a push to the EV plans set for the country.
Why is no license required?
Under the Electricity Act of 2003, a license is required for any activity of transmission, distribution or trading of electricity. This caused a confusion on if charging a battery of a vehicle resulted in the same.
The power ministry said, "The charging of battery essentially involves utilisation of electrical energy for its conversion to chemical energy, which gets stored in the battery. Thus, charging of the battery of an electric vehicle by a charging station involves a service requiring consumption of electricity by the charging station and earning revenue for this purpose from the owner of the vehicle."
This clarification will bring welcome stakeholders in the sector, and level up the competition by keeping the market open.
"In absence of such clarification, stakeholders were not sure of which business model to adopt for providing charging infra for consumers. Now, PSUs, private players, discoms, original equipment manufacturers, etc can join hands in developing a robust and appropriate charging infra for wider adoption of EVs in India," said vice president of Charge & Drive and Sustainability at Fortum India.
The activity does not cause a sale of electricity as the electricity will not travel beyond the premises of the charging station.