Cochin Airport

Cochin International Airport: Creating History with Solar Power 

by with One Comment AviationSustainability

Taking a look at the World’s first Solar powered Airport

The sun and its energy have always been ordained as an absolute necessity for the functioning of life on Earth. It is this same necessity that an airport in the state of Kerala, Cochin International Airport Limited (CIAL), has used as a trump card in its journey towards sustainable development.

A report by the International Energy Agency (IEA) states that Global Solar Photovoltaics (PV) capacity is expected to nearly triple between 2022 and 2027, surpassing coal as the world’s largest source of power capacity. According to the analysis, there are signs of diversity in global PV supply chains, with new legislation in the United States and India anticipated to increase investment in solar manufacturing by up to USD 25 billion between 2022 and 2027 [3].

Solar energy has been prioritised in India’s National Action Plan on Climate Change, with the National Solar Mission being one of the primary missions. The Mission’s goal is to position India as a global leader in solar energy by fast developing regulatory conditions for solar technology dissemination across the country [11]. India’s Intended Nationally Determined Contributions (INDCs) objective is to attain around 40% of cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030 and to reduce the emission intensity of its GDP by 33 to 35% from 2005 levels. As of November 30th 2022, solar power installed capacity was around 61.97 GW [11]. By 2026, the Indian industry will be able to produce 100 gigatonnes (GW) of solar modules per year, allowing the country to become a net exporter of solar power. This will considerably help India’s goal of adding 500 GW of non-fossil energy capacity by 2030, according to Bhupinder Bhalla, Secretary, Ministry of New and Renewable Energy [5].

Solar Energy in India’s Aviation Sector

India has set itself an ambitious goal of being the third-largest economy by 2030 and a $5 trillion economy by 2024–25. To reach the targets, there needs to be an increased focus on sustainable growth, which must address climate change issues and accomplish the Sustainable Development Goals (SDGs). The government plans to install 500 GW of renewable energy by 2030, including 280 GW of solar power, with the goal of reducing the nation’s overall carbon impact [12]. The idea of adopting solar power as an option, even for the aviation industry, has been sparked by the desire to lessen reliance on fossil fuels. In order to meet the needs of a large number of passengers, modern airports use a lot of energy in their daily operations, leading to large amounts of carbon emissions [12].

The conversion of Cochin International Airport Limited (CIAL) into a fully solar-powered airport began in the year 2013. CIAL started with a 100kWp Pilot Plant and gradually increased its solar capacity until it became the ‘World’s first Airport to be totally powered by Solar Energy’ in 2015, with an installed capacity of 13.1MWp [6]. In the year 2018, CIAL was awarded the United Nations’ Champions of the Earth environmental award. S.Suhas IAS, the Managing Director at CIAL states that “CIAL’s development policy encompasses Total Sustainability Management (TSM). We try to explore every possible way to address climate change. CIAL which achieved power neutrality in 2015 now becomes a power surplus organisation, feeding approximately 4 crore units of excess power annually to the State grid. And with the help of the Government, we are sure that we can venture into more such projects in the near future” [6].

The following section of this article will look into the solar energy initiatives taken up by CIAL and other initiatives that support their sustainability agendas.

Innovative Initiatives by CIAL

1.    Solar Energy

Solar power has been CIAL’s main focal point in its sustainable journey. At present, CIAL has 50 MWp of installed solar capacity. The airport produces surplus power which is supplied back to the grid. In accordance with a power banking module developed with the Kerala State Electricity Board (KSEB), CIAL contributes as much electricity as it generates throughout the day to the KSEB grid and “buys back” the power from KSEB as needed, particularly at night [1]. CIAL is the second largest energy producer in the state of Kerala, after the Kerala State Electricity Board (KSEB). In addition to maximising available land to install solar panels, CIAL has installed these panels on top of their car parking structure which is called solar carports.

Through its various solar PV systems at the airport, CIAL has produced more than 25 crore units of green energy to date. CIAL Infra purchased 35 acres of property in Payyannur, Northern Kerala, as part of its effort to expand its solar projects outside of CIAL premises, and built an 11.6 MWp solar plant there. This is the first terrain-based installation in India. The Payyannur solar farm was initially intended to be a “captive power plant” to help CIAL satisfy its growing energy needs. However, the Covid-19 outbreak derailed CIAL’s commercial ambitions and caused its energy consumption to slow down. As a result, this facility turned into an “Independent Power Plant ” (IPP) and the KSEB grid receives all of the energy produced by this plant [7]. This plant has so far generated approximately One Crore units of green power.

Relying upon solar energy for the entire functioning of the airport has enabled CIAL in lowering its carbon footprint by 1,60,000 metric tonnes [6]. This green energy initiative will reduce the amount of carbon dioxide emissions from coal-fired power stations over the next 25 years by more than 300,000 tons, which is the same as planting 3 million trees or not driving 750 million miles in automobiles [1].

2.    Photovoltaic Agriculture

With the aid of solar panels, CIAL has initiated Photovoltaic Agriculture. In this procedure, vegetables are grown in vacant spaces between solar panels. The water that is used to wash these solar panels runs off to the vegetables in between, thereby reusing water. The crops are anticipated to alter the microclimates beneath PV modules by lowering the temperature, which boosts power generation efficiency. Additionally, the crop coverage between PV arrays will prevent soil erosion and lessen the amount of dust that collects on the PV module. Another benefit of the cultivation is that it slows weed development around the PV panel mounts [8]. These agro-photovoltaic operations have so far generated about 90 metric tonnes of pesticide-free vegetables [6].

Conclusion

In the current scenario of climate change and the associated challenges that the world faces today in association with climate change, renewable energy is a step in the right direction. Airports, especially international ones, are important to a country’s economic fabric but at the same time contribute to a country’s carbon footprint. CIAL taking up solar energy and venturing into renewable energy has provided both a greater opportunity and a boost to switch to green energy. Other airports would be able to install renewable energy with ample planning along with clearly laying out their sustainability agendas.

References

  1. P.S, J. ICAO ENVIRONMENTAL REPORT – Sustainable Alternative Fuels. https://www.icao.int/environmental-protection/Documents/EnvironmentalReports/2016/ENVReport2016_pg177-177.pdf. Accessed May 2, 2023
  2. How is the World’s first airport fully powered by Solar Energy faring over time. https://www.routesonline.com/airports/5427/cochin-international-airport/news/298663/how-is-the-worlds-first-airport-fully-powered-by-solar-energy-faring-over-time/. Accessed May 2, 2023
  3. International Energy Agency (IEA). Renewable Power’s growth is being turbocharged as countries seek to strengthen energy security – news. (2022). https://www.iea.org/news/renewable-power-s-growth-is-being-turbocharged-as-countries-seek-to-strengthen-energy-security. Accessed May 12, 2023
  4. Richardson, L. (2023, April 26). History of solar energy: Timeline & invention of solar panels: Energysage. https://news.energysage.com/the-history-and-invention-of-solar-panel-technology/. Accessed May 15th, 2023 
  5. Koshy, J. (2023, February 20). India plans to Export Solar Power: Official. The Hindu. https://www.thehindu.com/sci-tech/energy-and-environment/india-to-be-net-exporter-of-solar-modules-by-2026-says-ministry-for-new-and-renewable-energy-official/article66528527.ece. Accessed May 16th, 2023
  6. CIAL’s green energy generation touches 25 Cr. Units. Cochin International Airport. https://www.cial.aero/news-Updates/CIAL-s-green-energy#:~:text=CIAL%20now%20has%20a%20total%20installed%20solar%20capacity%20of%2050%20MWp.&text=Till%20date%2C%20CIAL%20has%20generated,by%201%2C60%2C000%20Metric%20tonnes. Accessed May 16th, 2023
  7. SOLAR POWER PROJECTS. CIAL infrastructure. https://www.cialinfra.in/projects/solar%20power%20projects. Accessed May 16th, 2023
  8. Cochin Airport Scales up agri-voltaic farming with joint production of food and Energy. (2021, December 13). The New Indian Express. https://www.newindianexpress.com/states/kerala/2021/dec/13/cochin-airport-scales-up-agri-voltaic-farming-with-joint-production-of-food-and-energy-2395094.html. Accessed May 16th, 2023
  9. Small Hydro Electric Project (SHEP). CIAL Infrastructure. https://www.cialinfra.in/Projects/SMALL%20HYDRO%20ELECTRIC%20PROJECTS%20(SHEP). Accessed May 16th, 2023
  10. CIAL to commission its 1st Hydropower Project. (2021, October 24). https://www.hindustantimes.com/india-news/cial-to-commission-its-1st-hydropower-project-101635101042584.html. Accessed May 16th, 2023
  11. Current status: Ministry of new and renewable energy, government of India. (n.d.). https://mnre.gov.in/solar/current-status/#:~:text=Solar%20power%20installed%20capacity%20has,and%20has%20achieved%20grid%20parity. Accessed May 12th, 2023
  12. Solar fueling green transformation of Indian Aviation. (2022, December 12). ET EnergyWorld. https://energy.economictimes.indiatimes.com/news/renewable/opinion-solar-fueling-green-transformation-of-indian-aviation/96162613. Accessed May 25th, 2023

Going Green: A Reality or a Facade?

by with No Comment Green WashingSustainability

Evaluating the relevance of greenwashing in a society where green has become a fad.

The Rise of Green Marketing

As the world continues to grapple with the urgent need for sustainable development, a disturbing trend has emerged – GREENWASHING. Companies and organisations are increasingly using deceptive marketing tactics to portray themselves as environmentally friendly, while their actual practices may be far from sustainable. 

At the COP27 climate summit in Egypt last year, UN Secretary-General António Guterres said, ‘We must have zero tolerance for net-zero greenwashing. [1]

Greenwashing implies “a discrepancy between words and deeds, which combines poor environmental performance and positive communication about the environmental performance.” [4] 

Consumers nowadays seek green products while investors want to invest in companies that care about the environment. [6] In the environmental era, firms are continuously looking for new ways to distinguish their products. Companies are eager to, on the green trend due to which greenwashing has become prevalent. [3] 

In the domain of environmental management, the term “greenwash” is used as a metaphor akin to the term “whitewash” to create an image among consumers that a firm implements sustainable business processes and practices. [8]

Typically, businesses use marketing and promotion to “greenwash” their products by making false claims that their product is recyclable, biodegradable, and eco-friendly.[1]

Before we explore greenwashing, it’s important to understand the difference between it and genuine green marketing. Let’s take a closer look.

Greenwashing and green marketing: two sides of the same coin

There’s a  thin line between green marketing and greenwashing.

Green marketing can be defined as “an ethical approach to sustainability of an organisation who adopts green practices as their major corporate social responsibility to meet the challenges put forward by consumers without having any ill-effect on the environment.”[8] Greenwashing is defined as the “act of misleading consumers regarding the environment-friendly practices of a company.” [5] Green marketing tends to increase the preference of consumers towards greener products whereas in the case of greenwashing a company deceives the consumer into believing their products are green by making exaggerated claims so that the consumer is convinced to buy the product. [10]

The seven sins of Greenwashing

An in-depth understanding of greenwashing requires us to know about the ‘seven sins of greenwashing’ [7]. The seven sins are as follows:

1. Sins of no proof – This happens when an environmental claim about a product is not supported by any relevant data or certification. 

For example, Facial tissues or toilet tissue products that claim various percentages of post-consumer recycled content without providing evidence

2. Sins of vagueness – This happens when a product makes claims that need to be better formed and can be easily misunderstood by the consumers.

For example, All natural claims. Arsenic, uranium, mercury, and formaldehyde are all naturally occurring, and poisonous. All natural isn’t necessarily green.

3.  Sins of hidden trade-offs – This happens when a claim about a product being green is made by looking at a limited set of characteristics while overlooking some significant environmental issues.

For example, Paper is not necessarily environmentally preferable because it comes from a sustainably harvested forest. Other environmental issues in the paper-making process, such as greenhouse gas emissions are equally important.

4.  Sins of irrelevance – This happens when truthful yet unhelpful and useless information is provided to the consumer in the name of a green claim.

For example, Companies make CFC-free claims despite the fact that CFCs (chlorofluorocarbons) are banned under the Montreal Protocol.

5. Sins of lesser of two evils – This is committed by making claims that are true in the product category but which may distract the consumers from other health or environmental risk. This happens when true claims about a certain product might divert consumers’  attention from the product’s other environmental effects.

For example, Organic cigarettes.

6. Sins of false labels – This is committed when a product through words or images tries to give an impression of a third-party endorsement when no such endorsement exists. 

7. Sins of fibbing – This is committed by making green claims that are untrue. 

For example, Products falsely claiming to be ENERGY STAR® certified or registered.

The dangers of unchecked greenwashing

The consumer is being led to feel that by adopting the practices advocated by particular companies, they are aiding the environment, even though this may not be the case. Consumers may lose faith in businesses that are doing well for society as a result of greenwashing. Consumer and investor confidence in green products and environmentally conscious businesses can be severely harmed by greenwashing, which makes these stakeholders reluctant to reward businesses for their environmental performance. Thus, the company can lose both consumers and investors while tarnishing its brand image as a result of greenwashing,[2]

Major Industries where greenwashing is rampant in India

Sensharma, Sinha and Sharma,2022 try to look at ESG reporting in India through a lens of greenwashing. They take the companies listed under NIFTY STOCK 50 index from the year 2019-20 using available ESG scores. They try to measure and compare the extent to which the companies are engaging in greenwashing activities. Data for the study is collected through secondary sources like Bloomberg and Thompson Reuters.[9]

The results of the study indicate that “54% of the 48 companies which are part of the sample are greenwashers”. The average greenwashing score turned out to be the most in the case of the energy sector and the least in the FMCG sector. [9]

Singhal and Agrawal, 2021 have tried to understand the concept of greenwashing from a consumer point of view in the state of Rajasthan, India. They have also tried to find out which sector in India greenwashes the most. A sample size of 100 individuals was chosen for the study and 88 people responded. The research was conducted through the medium of questionnaires which were mailed to the respondents. Some secondary data was also used in the analyses. The results of the study indicated that the beauty/cosmetic industry greenwashes the most, followed by Automobile Industry. [11]

So we can see that there is a difference in the consumer perception and the actual greenwashing score of the industries. While the consumer perceives that greenwashing is rampant in the beauty products/cosmetic industry, the greenwashing score comes out to be the most in the Energy Sector in India.

Way forward

In the current scenario, greenwashing is a significant issue that requires attention.

Consumers need to be aware of this practice and should read the labels carefully while buying green products. They should also do the necessary research before purchasing a product solely because it makes green claims.

Brands need to be aware that modern consumers value authenticity. While indulging in greenwashing may help them close deals quickly, there is a chance that consumers might lose faith in the company and stop buying their products altogether.

Businesses need to take their corporate social responsibility seriously and refrain from greenwashing activities as it can tarnish their image. They need to invite customers to join them in the effort to create a future that is both inclusive and truly green.

In the quest for a sustainable future, combating greenwashing emerges as a vital step towards real progress. With the awareness of this deceptive practice, consumers now hold the power to make informed choices. By diligently scrutinizing labels and conducting thorough research, one can differentiate between authentic green products and those that merely make false claims. Likewise, brands must recognize that the modern consumer values transparency and genuineness. 

Though greenwashing may yield short-term gains, the long-term consequences can be severe, eroding consumer trust and jeopardizing their market presence. Embracing corporate social responsibility becomes imperative for businesses, as they strive to build an unblemished reputation and foster a partnership with their customers. Together, by rejecting greenwashing and embracing a shared vision of inclusivity and true sustainability, we can pave the way towards a greener future for all.

If you need expert guidance on navigating the complexities of sustainability and avoiding greenwashing, reach out to our sustainability experts at Carbon Mandal and let’s work together towards a truly sustainable tomorrow.

List of references

[1] https://www.businessnewsdaily.com/10946-greenwashing.html

[2] https://www.lexology.com/library/detail.aspx?g=e2df54e3-5187-4a7f-b7fd-3db6d199e280

[3]Chen, Y.S. and Chang, C.H. 2012. “Enhance green purchase intentions: the roles of green perceived value, green perceived risk, and green trust. “Management Decision 50(3) :502-520.

https://www.researchgate.net/publication/235297505_Enhance_Green_Purchase_Intentions_The_Roles_of_Green_Perceived_Value_Green_Perceived_Risk_and_Green_Trust

[4] Gao, H., Knight, J. G., Zhang, H., Mather, D., & Tan, L. P. 2012“Consumer scapegoating during a systemic product-harm crisis. Journal of Marketing Management” 28(11–12):1270–1290.

https://researchers.mq.edu.au/en/publications/consumer-scapegoating-during-a-systemic-product-harm-crisis

[5] Parguel, B., Benoıˆt-Moreau, F., & Larceneux, F.2011. “How sustainability ratings might deter ‘greenwashing’: A closer look at ethical corporate communication.” Journal of Business Ethics 102(1):15–28.

https://www.researchgate.net/publication/49132365_How_Sustainability_Ratings_Might_Deter_Greenwashing_A_Closer_Look_at_Ethical_Corporate_Communication

[6]Pizzetti, Marta, Lucia Gatti, and Peter Seele. 2021.”Firms talk, suppliers walk: Analysing the locus of greenwashing in the blame game and introducing ‘vicarious greenwashing’.” Journal of Business Ethics 170 (1): 21-38.

https://econpapers.repec.org/RePEc:kap:jbuset:v:170:y:2021:i:1:d:10.1007_s10551-019-04406-2

[7]Lim, Weng Marc, Ding Hooi Ting, Victor Sudirman Bonaventure, Alan Putera Sendiawan, and Pengestu Patanmacia Tanusina. 2013. “What happens when consumers realise about green washing? A qualitative investigation.” International journal of global environmental issues 13 (1) :14-24.

https://www.researchgate.net/publication/264822766_What_happens_when_consumers_realise_about_green_washing_A_qualitative_investigation

[8]Mukherjee, R., and I. Ghosh. 2014. “Greenwashing in India: a darker side of green marketing.” The International Journal of Business & Management 2(1 ):6-10.

https://www.worldwidejournals.com/global-journal-for-research-analysis-GJRA/recent_issues_pdf/2016/December/December_2016_1481986067__101.pdf

[9] Sensharma, Sushobhan, Manish Sinha, and Dipasha Sharma.2022. “Do Indian Firms Engage in Greenwashing? Evidence from Indian Firms.” Australasian Accounting, Business and Finance Journal 16(5): 67-88.

https://ro.uow.edu.au/aabfj/vol16/iss5/5/

[10]Vijay, Praful. 2019. “The Impact of Greenwashing on Green Brand Trust from an Indian Perspective”. Asian Journal of Innovation and Policy 8(1) : 162-179.

https://koreascience.kr/article/JAKO201916936726055.page

[11] Singhal,Himanshu; and Ankita Agrawal.2021. “Greenwashing : A study on consumer behaviour and effectiveness in Rajasthan.” EPRA International Journal of Environmental Economics, Commerce and Educational Management 8(2) :1-5.

https://eprajournals.com/IJCM/article/4439/download

The Prime Minister, Dr. Manmohan Singh delivering Statement at the fourth Plenary Session of the UN Conference on Sustainable Development (Rio+20), at Rio de Janeiro, Brazil on June 21, 2012.

Sustainable Development Goals : Nations roadmap to building a sustainable future

by with No Comment Sustainability

A background on how SDGs came into existence

The SDGs were drawn up at the United Nations Conference on Sustainable Development in Rio De Janeiro in 2012 with the sole purpose of combating the world’s urgent environmental, political, and economic challenges. It is well understood that eradicating poverty and other forms of deprivation must be combined with efforts to improve health and education, minimise inequality, and boost economic development all while combating climate change and aiming to preserve and defend our oceans and forests.


In order to do this, the Division for Sustainable Development Goals ( DSDG ) delivers significant support and capacity-building for the Sustainable Development Goals (SDGs) and relevant thematic issues. Furthermore, to make the 2030 Agenda a reality, broad ownership of the SDGs must be translated into a firm commitment to achieving the global goals by all stakeholders. The 2030 agenda for Sustainable Development is the framework for peace and prosperity for the people of the planet today and tomorrow. At its very core, there are 17 Sustainable Development Goals, also termed as SDGs, which are an immediate call for action by all nations, developed and emerging. These 17 SDGs mark a significant change in the vision and goals of the United Nations. What makes them especially different however is the comprehensiveness. Not only does the agenda include individual contribution, but it also makes collective communities and societies of all strata a stakeholder too.

The SDGs as a Global Movement

As a comprehensive agenda, it brings together all individuals and nations to the same table at the same time regardless of their developmental stage and with transparent agendas. All organizations are seen as equal partners in the long-term sustainability agenda. In simpler words, the paradigm shift stems from encouraging individuals from all corners of the globe to become involved, engaged, and invested in our world as a whole, each with their own duty, accountability, and hope for long-term success.

One of the characteristics of the Sustainable Development Goals that stands out is its scope. The element of obligation is the first feature that demonstrates this. As compared to the MDG’s, this agenda focuses on the responsibility of the world as a whole and not just a niche of people. The other really important characteristic is the interrelationship between the goals. For example, although goal number is the eradication of poverty and hunger, without employment and economic growth or even quality education, it cannot be entirely achieved.

17 SDGs include the following :

GOAL 1: No Poverty
GOAL 2: Zero Hunger
GOAL 3: Good Health and Well-being
GOAL 4: Quality Education
GOAL 5: Gender Equality
GOAL 6: Clean Water and Sanitation
GOAL 7: Affordable and Clean Energy
GOAL 8: Decent Work and Economic Growth
GOAL 9: Industry, Innovation and Infrastructure
GOAL 10: Reduced Inequality
GOAL 11: Sustainable Cities and Communities
GOAL 12: Responsible Consumption and Production
GOAL 13: Climate Action
GOAL 14: Life Below Water
GOAL 15: Life on Land
GOAL 16: Peace and Justice Strong Institutions
GOAL 17: Partnerships to Achieve the Goal

At the Sustainable Development Summit – 2015, 193 countries officially adopted the SDGs. As the SDGs make all the nations globally a stakeholder of this agenda, the Nationally Determined Contribution (NDCs) are a way of ensuring that all 193 nations play a part.

How Nations can do their part?

People-centered, universal, transformative, and interconnected is how the new agenda functions. It urges all countries to take action for all people in five vital areas over the next 15 years: citizens, environment, development, stability, and partnership. Since 2017, humans are thought to have contributed to a rise of 1.0°C above pre-industrial levels. In about 140 years, sea levels have risen around 20 cm and in another 80, it could rise by another 30-122 cm. It is vital for countries to take up responsibilities as the numbers look extremely dire.


To battle this, 196 parties came together under the umbrella of the Paris Agreement in 2015 aiming to limit warming to 1.5 to 2 degrees above pre-industrial levels. The NDCs are at the core of the solution to this problem. They are in a nutshell, climate plans that highlight climate activities that national governments intend to enact in response to climate change. India for example pledged to produce an additional carbon sink of 2.5-3.0

1 billion tonnes of CO2 equivalent by 2030 as part of the 2015 Paris Agreement’s Nationally Determined Contribution (NDC) goal. To attain this, India is going to have to produce an additional 25 – 30 million hectares of forest cover by 2030. This is equivalent to a whopping 46.7 – 56 million football fields.
As a remedy for this, Green India Mission (GIM) is one of the 8 missions under the National Action Plan on Climate Change (NAPCC) launched in 2015 with objectives in line with meeting the Paris agreement. GIM aims to raise forest cover by 5 million hectares, which again is equivalent to almost about 9.3 million football fields over a period of ten years. Although there is a lack of data in this case, according to a NAPCC results survey, GIM missed its targets by 34% in 2015, 2016, and 2017. Just 44,749 hectares of land received green cover. GIM continues to fall short of its annual goals due to a lack of financial support at both the federal and state levels, moving the NDC goal farther away.


To wrap it up, despite the fact that the SDGs are not legally binding, governments are motivated to establish national structures in order to achieve them. The SDGs are interconnected and undivided, integrating the fiscal, societal, and environmental aspects of sustainable change, while the Paris Agreement is in line with the 2030 Agenda and calls for immediate climate action. SDGs provide a solid framework for nations to plan and design their NDCs to meet the 2030 agenda while monitoring progress. SDGs play as an important roadmap for countries and act as a cornerstone helping them align to progress and sustainable global development.

Electric Vehicle market in India

Electric Dreams: How India is Charging Ahead with Sustainable Transport

by with No Comment Electric VehicleSustainability

Powering Up: Exploring the Driving Forces Behind India’s Thriving Electric Vehicle Market

Nitin Gadkari, Minister of Road Transport and Highways, has stated that ‘‘Between 2019 and 2021, two-wheeler electric vehicles increased by 422%, three-wheelers by 75%, and four-wheelers by 230%’’[4]. Globally, electric vehicles are gaining popularity and this trend definitely imparts its influence on the Indian market, where significant growth is seen, with close to 3.2 lakh vehicles sold in 2021 [7]. The  Electric Vehicle Market in the country, in the year 2020 had a market size of $USD 5 billion. This is projected to grow at an astronomical 44% compound annual growth rate and reach $USD 47 billion by the year 2026 [8].

The automobile industry has always been an essential part of the Indian economy and market. However, in the current climate crisis, with increasing vehicle demand due to population growth, fossil fuel-powered or conventional energy sources are no longer a sustainable option. This is more relevant in India where approximately 80% of its crude oil requirements are imported. It is in this context that the emergence of Electric Vehicles (EVs) is extremely important. India’s EV market was valued at USD 220.1 million in 2020 and is projected to grow at 94.4% from 2021 to 2030 [1].

The popularity of EVs in India can easily be noted by assessing the market sale of these vehicles, where above 300,000 electric vehicles were registered in Uttar Pradesh, Maharashtra and Karnataka [6]. As of March 15ᵗʰ 2023, 256,980 EVs were registered in the country [12]. In addition to the environmental benefits that are present in using an EV, there are several other drivers that exist in India, driving the sales of electric vehicles. Four such key drivers are discussed in detail below.

Key factors driving the electric vehicle market in India

1. Government Policies and Incentives

As part of efforts to drive the growth of the market, the government has drafted stringent emission norms, such as the Bharat Stage (BS) VI emission standards implemented by India’s Ministry of Road Transport and Highways (MoRTH) [1]. Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) is India’s flagship program to promote electric mobility, launched in 2015 by the Department of Heavy Industry. 2,877 charging stations have been approved in 68 cities across 25 States/UTs under FAME-II [12]. The states of Andhra Pradesh, Karnataka, and Delhi are leading the way in terms of the number of charging stations sanctioned in India, with 266, 172, and 72 stations respectively [3]. To develop a competitive domestic manufacturing ecosystem for electric mobility, the National Mission on Transformative Mobility and Storage mission will lay out the strategy and roadmap necessary for India to leverage its size and scale. Additionally, it aims to improve air quality in cities, reduce India’s dependence on oil imports, and boost the use of renewable energy and storage systems [3].

2. Rising Fuel Costs

Fuel prices rising exponentially in India, acts as a driver in increasing the sale of electric vehicles. The increase in sales of electric vehicles during 2019-2021 shows a relationship between the increasing fuel prices and the growing market of EVs. India’s fuel prices are high due to heavy taxes, which might increase further, along with which the cost of oil imports heavily affects India’s import bill [5].  Petrol prices in February of 2021 alone were Rs 100. At this rate, a typical petrol vehicle’s running cost would be around Rs 8-9 km per litre, whereas for an EV it would only be around Rs 1 per km. This difference will amount to huge savings in the large run [11]. In states like Andhra Pradesh, Bihar and Jharkhand the most recent petrol rates were 110.4₹/L, 107.2₹/L and 99.80₹/L respectively [9]. The per capita income in the above-mentioned states is ₹1,76,707 (Andhra Pradesh), ₹43,605 (Bihar) and ₹71,071 (Jharkhand) [10]. These numbers show how the majority of one’s income would go into petrol vehicles and in turn, highlights the cost-effectiveness of EVs.

3. Growth of Indian Companies Leading The EV Race – Make in India

The Indian government encourages the manufacturing of EVs by Indian-based companies and thus acts as a major driver in the Indian EV market. One of the major advantages that this would have is affordability and it’s being custom-made for Indian roads and travel requirements. Some of the top Indian companies for EVs are TATA, Mahindra, Okinawa and Ather Energy, and they manufacture not only passenger cars but also 2W and 3W-like autorickshaws. Production Linked Incentive (PLI) scheme, with a budget of INR 25,938 crore, has the backing of automobile manufacturers, who have committed to invest an amount of INR 74,850 crore as against the Government’s estimate of INR 42,500 crore spread over a five-year period starting from FY23 [13]. Initiatives such as these, followed by a response from the industry, are a much-needed stimulus towards achieving the five trillion dollar economy, Make in India, and Atma Nirbhar Bharat Abhiyan.

4. Charging Infrastructure and Battery Technology

Being able to conveniently charge EVs is crucial in its sale and market. To enable these charging stations have been installed in cities and along expressways and highways, by the government [6]. As mentioned earlier, a large number of charging stations have been approved in most states and UTs and this number is expected to surge further. For example, EV charging points have been installed in some commercial buildings in Gurugram, allowing office staff to charge their vehicles during work hours [6]. Shuchi Anant Virya, a joint venture company, has also established 18 charging points along the Manali-Leh highway. Battery charging points are also installed at the homes of EV buyers by companies that sell EVs [6]. PLI-ACC is a government incentive program for advanced chemistry cell battery storage, intended to boost India’s battery infrastructure. The allocated fund for the same is US$ 2.45 billion (Rs 18,100 crore), to be given to beneficiaries over five years once the manufacturing facility is set up [7].

A promising future for electric vehicles in India

The future of EVs in India is quite promising. With the above-mentioned drivers’ exponential growth is predicted in the Indian EV market. At the same time, there are barriers that exist in implementing a growing EV market in the country. Some of these barriers are the high initial investment in buying an EV and even though the charging infrastructure is developing, it is not widespread enough. There is also a need to educate more citizens, especially those not belonging to the elite and upper-class income bracket, on the advantages of owning an EV. Considering that these barriers will be dealt with in the near future, EVs will be a very prominent part of the Indian market, thus helping the country in achieving its sustainability goals.

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List of References

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