From fossil to flexible: Advancing India’s road transport electrification
Synchronising electric vehicle charging with renewable energy generation offers a readily achievable opportunity in India’s journey to decarbonisation.
Table of Contents
Highlights
Executive summary
Accelerating decarbonisation gains of electric vehicles
India’s road transport electrification is gaining momentum, supported by policies and consumer adoption. To maximise the emission reduction benefits of electric vehicles (EVs), clean electricity for charging must increase. In turn, by aligning charging needs with renewable energy generation, EVs can become the enablers of a clean and more flexible energy system.
India is rapidly transforming its transport sector by adopting EVs as a key strategy to reduce emissions and improve air quality. EV adoption has accelerated significantly in recent years due to national and state policies and purchase incentives. This shift aligns with India’s commitments to lower carbon intensity and achieve net-zero emissions in the coming decades.
This study focuses on the post-purchase phase of EVs, excluding aspects related to vehicle manufacturing. Switching from petrol or diesel vehicles to EVs eliminates tailpipe emissions, but their overall emission reduction benefits depend on the source of electricity used for charging.
At present, only a small proportion of grid electricity supplying the EV charging needs comes from renewable energy resources, with the grid having an emission factor of 727 grams of carbon dioxide equivalent per kilowatt-hour (gCO2/kWh). On fulfilling National Electricity Plan (NEP)-14 targets by 2032, India’s clean energy share in the overall generation mix would reach ~50% with the grid emission factor expected to reduce to 430 gCO2/kWh by the fiscal year (FY)2032.
Even with the current electricity generation mix, just moving away from internal combustion engine (ICE) vehicles to EVs can cut emissions by 33%-55% across vehicle categories. These emissions can reduce further by switching from fossil fuel-based electricity resources to clean electricity resources.
Efforts are already underway to align EV charging with periods of high renewable energy generation. Several states have introduced time-of-day (ToD) tariffs that encourage charging during solar hours by offering lower daytime rates. To fully leverage these incentives, expanding public charging infrastructure to enable more accessible daytime charging will be essential. In parallel, continued support for integrating rooftop solar with EV charging stations, along with enabling renewable energy procurement through open access routes, will be critical for deepening clean energy use in EV charging.
Key takeaways
Yearly EV sales in India grew by 11X between FY2020 and FY2025
India’s EV market grew exponentially in the last five years, primarily driven by the two-wheeler and three-wheeler segments. Government schemes, both at the central and state levels, contributed to accelerating EV adoption in India in recent years.
EV charging-led emissions vary across Indian states, driven by differences in their electricity procurement mix
The emission intensity of EV charging depends on the share of clean electricity in a state’s power mix. In states like Karnataka, Madhya Pradesh, and Uttar Pradesh, which have more hydro power, 37.6%, 23.8%, and 18.3% of electricity used comes from clean sources, resulting in lower emissions. In contrast, Gujarat, which has more wind and solar but limited hydro, has only 12.3% clean electricity, leading to higher emissions.
Eight out 10 states analysed are trying to align EV charging with solar generation
States like Assam, Bihar, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Tamil Nadu have adopted solar hour-specific ToD tariffs, providing rebates on EV charging during the solar hour and imposing surcharges during the peak hours.
EV charging needs are likely to grow ninefold between 2024 and 2030
Our analysis of two EV stock projection scenarios and associated electricity requirements for charging shows that by 2030, EV charging demand driven by EV stock in that year is likely to reach 25,300 GWh —14 GW equivalent of dedicated wind and solar capacity.
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