Addressing the confusions regarding electric vehicle charging infrastructure in India, the ministry of power has finally issued its statement. As stated, companies setting up charging infrastructure for electric vehicles do not require any separate license for electricity transmission, distribution or trading.
The statement reads, “Recently, the issue of charging of batteries of electric vehicles has been deliberated at various forums as to whether or not charging stations would be required to obtain a license under the Act. The charging of battery essentially involves utilisation of electrical energy for its conversion to chemical energy, which gets stored in the battery.”
“Thus, the 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,” the power ministry further stated.
However, this activity does not in any way “include the sale of electricity to any person as the electricity is consumed within the premises owned by the charging station, which may be connected to the distribution system or otherwise for receiving electricity. By the same logic, the activity does not involve further distribution or transmission of electricity.”
The clarifications came citing the provisions of the Electricity Act 2003, which was brought into force with effect from June 10, 2003. As per section 12 of the act, a license is required for the activities of transmission, distribution or trading in electricity.
The matter has been examined in detail in consultation with various stakeholders including the Central Electricity Authority (CEA).