Starting a buisness electric vehicle charging station
1. GOVERNMENT ENGINEERING COLLEGE
BHARUCH
160140119046 Mukul chandak
160140119048 Neupane Manoj
160140119050 Panchani Deep
160140119052 Pandya Deep
160140119055 Patel Abhi
Presented By:
Subject : Entrepreneurship (2182923)
Topic : Starting a Electric Car Charging Station
Providing Business
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2. Contents
Introduction to the business
Risk Associated with the business
Market Reasearch and Areas of implementation
Making relation with appropriate manufacturers
Getting certification from authorities
Investements
Revenue generation
Customer attraction
Conclusion
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3. Introduction to the business
An electric vehicle charging station is equipment that connects an electric
vehicle (EV) to a source of electricity to recharge electric cars.
Traditional cars have a negative impact on the environment as a result of fuel
consumption and consequent emissions of CO2, leading to air pollution.As
EV cars enable a 40% cut in CO2 emissions, there’s no doubt that they will
be the future of public transport.
One of the major hurdles which is keeping the use of EV's is the lack of
public charging infrastructure. Hence in order to utilize the future's
entreprenuial oppurtunity, this business can be fruitful.
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4. Till date, most EV owners have been charging from their homes or offices.
However, as the adoption goes up, there will be a requirement of public
charging infrastructure.
While earlier, the charging stations were majorly dominated by the
government-run companies such as EESL or major industry players such as
TATA Power, but now the tables have turned.
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5. Risk Associated with the business
This business depends upon the sales of Electric vehicles.
The EV charged vehicles have short range and charging takes time.
Car charging is often a small side business for some companies.
Technology change - Newer faster charging technology is disrupting some
slower charging technology.
Management and currency risks.
The usual stock market risks (liquidity, sentiment etc.).
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6. Market research and area of implementation
Market Research - First of all before the implementation of the
business it is necessary to carry out the market research. So, through the
market research it is found that the Indian governmet stated that by the year
2030 all the vehicles in the road will transform from internal combustion
engine to the electric vehicles. Hence, it is a perfect oppurtunity for an
entreprenuer to takeover this business.
Also it was found that the number of vehicles sold in India doubled in year
2017 as of 2016, So, we can consider a tremendous increase in the sale of
electric vehicles in the coming years in India.
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7. The graph showing number of Electric Vehicles sold in the
respective years in India :
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8. Area of Implementation
For the implementation of electric charging stations we need to identify the
areas with maximum number of Electric vehicles.
As of now in India, UP leads the race with Delhi on the second spot of
maximum no. of EV's sold. Various automobie companies like TATA Motors,
Mahindra, Hyundai, etc have came with the agenda to make electric Inroads
in the cities like Noida, Lucknow, South Delhi, etc.
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9. Relations with the Manufacturers
It is essential to make up relations with some core EV charger producers of
the region of implementation. Some of the manufacturers of India are listed
below:
1. ECOYAN.
2. Tata Motors.
3. Ather Grid.
4. Exicom.
5. Delta Electronics.
6. ABB.
7. Fortum India.
8. Magenta Power.
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10. Certification from authorities
Apart from hardware and technological needs we also need to get some local
certifications and clearences coming from government. Also, setting up the
EV charging business does not require any license but evrey state have
different power compliances.
EVCS Certification Program ensures that charge station hardware complies
with the Open Charge Point Protocol (OCPP), an internationally established,
open-standards-based protocol for communication between electric vehicle
EV charge station hardware and charge station networks.
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11. Minimum Requirements for setting up EV station
According to the government of India every Public Charging Station (PCS) shall
have the following Infrastructure :
i. An Exclusive transformer with all related substation equipment including
safety appliance.
ii. 33/11 KV line/cables with associated equipment including as needed for
line terminating/metering etc.
iii. Appropriate civil works
iv. Adequate space for Charging and entry/exit of vehicles.
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12. Investment
Typically a minimum investment of about 30 Lakhs is needed to start a EV
station. Now Breaking up this cost there would be 5 heads under which these
cost would come.
1. Installation of the charger
2. Maintenence of the charger
3. Local Certifications
4. Electricity cost
5. Manpower cost
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13. EV Charging Station
INR 30 Lakh
Installation
Maintenance
Local Certifications
Investments Distribution
Electricity
Manpower
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14. Revenue Generation
• Revenue projection from the PCS business is calculated in the next table
based on the following assumptions:
• 20 hours of charging operations for 30 days/month
• Capacity Utilization Factor (CUF) of PCS setup considered at 15% for Year-1,
25% for Year-2, 40% for Year-3, 65% for Year-4 and 85% for Year-5
(optimistic scenario)
• Electricity tariff to the DISCOM is considered as pass through to consumer
• A margin of Rs 2.5 on electricity tariff is considered in Scenario-A
• A margin of Rs 3 in first & second year, Rs 2.5 in third & fourth year and Rs 2
from fifth year on wards is considered in Scenario-B
• EVSE Management Software fee considered @10% of net margin on
electricity tariff
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15. Description Year-1
15% CUF
Year-2
25% CUF
Year-3
40% CUF
Year-4
65% CUF
Year-5
85% CUF
Total in
5 Years
Electricity sold to
EV's per year (KWh):
Per days maximum: 3240
x days per year: 360
consider as 100% CUF
174960 291600 466560 758160 991440 2682720
Estimated Revenue (Inr)
Scenario - A
Margin on
Elecricity Tarrif - rs 2.5
437400 729000 1166400 1895400 2478600 6706800
Scenario - B
Margin on electricity tarrif in
1st and 2nd year - rs 3
3rd and 4th year - rs 2.5
5th year onwards - rs 2.0
524880 874800 1166400 1895400 1982880 6444360
OPEX from table 1 - 972000 822000 822000 822000 822000 4260000
EVSE Management
Software fee 10% on margin
670680
Total OPEX Scenario - A 4930680
EVSE Management
Software fee 10% on margin
644436
Total OPEX Scenario - B 4904436
Net Revenue Scenario - A 1776120
Net Revenue Scenario - B 1539924
16. Customer Attraction
Even for small businesses that put up only one or two charging stations,
business owners can expect an increase in customer traffic from EV drivers.
Hybrid and all-electric car owners are more than likely to look for a specific
store or even restaurant where they can easily plug in and charge their car
during regular visits.
As the EV market keeps growing, businesses can take advantage of the
opportunities that EV charging stations offer to attract even more customers
and increase their average value.
With increased customer traffic, business owners can even:
Increase the number of charging stations;
Introduce incentives for EV drivers;
Make their business place the ultimate meeting spot for EV enthusiasts.
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17. Conclusion
Traditional cars have a negative impact on the environment as a result of fuel
consumption and consequent emissions of CO2, leading to air pollution.
These emissions are widely accepted as a trigger for global warming and
legislation such as the Climate Change Act 2008 has been introduced to bring
this under control. Hybrid vehicles generate significantly reduced emissions
and EV cars produce none at all.
As India is a Country with vast rodal network, It wants to boost the popularity
of EV's. India's government came up with the agenda of making the whole
country use EV's by the end of 2030.
Hence, this is the oppurtunity to take over the market with providing EV
charging facilities all over the nation.
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