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MOSL: OIL & GAS-EVs – 30% penetration by 2030 or earlier?

Oil & Gas: EVs – 30% penetration by 2030 or earlier?

 

• As a member of Electric Vehicle Initiative (EVI) - a multi-government policy forum - India aims to achieve 30% EV penetration in new vehicle sales by 2030. The journey so far has been quite bumpy, though.
• We met management of Energy Efficiency Services Limited (EESL), which is making a foray in electric vehicles (EVs) right after its success in reducing the cost of LEDs to a fraction. Key takeaways: 

LED demand CAGR of ~15% over last 3-4 years

• LEDs use 75% lesser energy and last 25x longer than conventional incandescent lighting. However, the cost was prohibitive a few years back, making its adoption difficult.
• Through demand aggregation under the Street Lighting National Programme (SLNP), EESL has helped suppliers achieve large economies of scale, bringing down the cost of LEDs to nearly one-seventh.
• In a significant push to bring down lighting costs, EESL has been focusing on public lighting infrastructure, replacing ~5.5m street lights by FY18. 

Smart meters - a step toward better billing efficiency

• Conventional electric meters do not provide any intelligence with respect to dynamic consumption pattern. In contrast, smart meters provide two-way communication between the consumer and the supplier, enabling better management of demand/supply and lowering aggregate technical and commercial (AT&C) losses.
• However, smart meters are costly. EESL's Smart Meter National Programme (SMNP) is aimed to replace 250m conventional meters with smart meters across India by 2027.
• Through mass adoption of smart meters, it aims to reduce AT&C losses to below 12% by 2022 and below 10% by 2027.