CURRENT SCENARIO, FUTURE OUTLOOK AND CHALLENGES IN AVAILABILITY OF GREEN ELECTRONS TO EMOBILITY SECTOR AND ROLE A POWER TRADER/MARKETS CAN PLAY TO FACILITATE

Today a battery costs nearly half the price of an electric vehicle. We should try to optimize range with lower cost by linking them with the capacity of the battery and performance as it is an important part of an “EV Conversation”.

India, being a price-sensitive market, we will have to ideate on cost-effective battery technologies to supplement this transition. An optimal balance between performance, storage capacity, size and durability with price and range should be our top priority . We should work on the cost reduction of Lithium-Ion batteries and development of a low-cost li-ion technology. Lithium-ion batteries are used extensively in other industries as well as the smart phone industry. We also need to explore the possibility of recycling batteries. Majority of EVs are powered by lithium-ion batteries.

The 2-wheeler and 3-wheeler market along with the public transport segment will adopt EVs quicker in the short term. India, being a price-sensitive market, we will have to ideate on cost-effective battery technologies to supplement this transition. An optimal balance between performance, storage capacity, size and durability versus price and range should be our top priority. These demands would make the slope of shell’s transition very steep.

The Shell Energy Transition Strategy publication aims to help investors and wider society gain a better understanding of how Shell is addressing the risk and opportunities of the energy transition . It shows how we intend to navigate the transition profitably and in line with our purpose to power progress together with more and cleaner energy solutions with the use of natural resources. Countries like Norway and China have put in place policies to support the use of electric vehicles with measurable success. The global passenger car fleet is projected to double by 2050, with the majority of growth taking place in developing markets, where an estimated three out of four cars will be found. Yet, while developing countries have the fastest growing fleets, most have no vehicle emissions standards, programmes and incentives in place to promote zero emission vehicles. After the chip crisis, from 2024, an increasing global battery cell bottleneck must be expected,” Dudenhoeffer said. Electric mobility will also contribute to balancing energy demand, energy storage and environmental sustainability. Electric vehicles could help diversify the energy needed to move people and goods thanks to their reliance on the wide mix of primary energy sources used in power generation, greatly improving energy security. Thanks to their storage capacity, they could help support the uptake of clean electricity, enabling greater use of variable renewable in electricity production. If coupled with the decarburization of the power sector, electric vehicles would also provide major contributions to keep the world on track to meet its shared climate goals. Electric mobility comes with zero or ultra-low tailpipe emissions of local air pollutants and much lower noise, and, by being one of the most innovative clusters for the automotive sector, can provide a major boost to the economic and industrial competitiveness, attracting investments, especially in countries. The Electric Vehicle industry in India is far behind, with less than 1% of the total vehicle sales. Currently, Indian roads are dominated by conventional vehicles and have approximately 0.4 million electric two wheelers and a few thousand electric cars only. The Indian EV industry has been on the back seat due to various challenges Availability of adequate Charging Infrastructure is one of the key requirements for accelerating the adoption of electric vehicles in India. In this regard, Ministry of Power has issued “Charging Infrastructure for Electric Vehicles — Guidelines and Standards” mentioning the roles and responsibilities of various stakeholders at Central & State level, for expediting the development of public EV charging infrastructure across the country. Ministry of Power has designated Bureau of Energy Efficiency (BEE) as the Central Nodal Agency (CAN) for the National-level rollout of charging infrastructure in the country Electric Vehicles (EVs) are run by electric motors which are powered by energy stored in batteries. EVs have an electric motor instead of an Internal Combustion Engine (ICE). As an EV runs on electricity, the vehicle emits no exhaust from a tailpipe i.e. it has zero tail pipe emission and does not contain components, such as a fuel pump, fuel line, or fuel tank. The falling cost of solar photovoltaic (near parity with coal) will ensure its competitiveness with fossil fuels India’s pumped hydro sector is emerging India is already the fourth largest generator globally of wind energy

Benefits of choosing an Electric Vehicle (EV) over Internal Combustion Engine (ICE) Vehicle Other Benefits: Economical: EVs have fewer moving parts as compared to ICE, thus EVs need less maintenance. Higher efficiency, lower fuel cost and lower operational cost makes EVs economical than ICE vehicles. Improved Air quality: EVs have no tailpipe emission as compared to ICE vehicles. Adopting EVs will help in reducing local air pollution. Shifting to EVs will reduce Greenhouse Gas (GHG) emissions that gets emitted from running an ICE vehicle. Convenience: EVs have no gears and are much easier to drive than ICE vehicles The lack of a combustion and mechanical drive train makes EVs much quieter Comfortably charge at home Upfront incentives from Government to EV owners Incentive for scrapping ICE vehicles EV owners can claim income tax deduction up to Rs 150,000 under Section 80EEB Reduced dependence of imported fossil fuel for the Country. Coal washing ,reducing methane emissions during the coal mining process Next generation coal combustion technology Carbon capture, usage and storage Including information sharing and collaboration on research and development. India seeks overseas assets to deliver energy resources in times of crisis and as a hedge against price volatility This is an extension of India building strong bilateral relationships with major energy supplier Controls on supply and the lack of transparent price signals reduce incentives to invest, improve efficiency or rationalise supply. Distribution is a bottleneck, impeding the effectiveness of reforms and innovation. Countering these problems

• poor transmission and distribution systems
• price sensitivity and its prioritisation over product life-cycle costs
• government overriding the commercial viability of power purchase agreements
• corruption o independent reports have identified power and utilities to be some of the most vulnerable sectors for corruption in India43
• complex processes to get certification and licences especially for renewables
• the continued dominance of state-owned enterprises in the resources sector creating inefficiencies and raising transaction costs
• severe water shortages o for example hydro and thermal power plants have gone idle for various periods due to water shortages improvement of transmission and distribution, including efficient management of renewable generation o installing and managing distributed solar systems o smart grid technologies (including advanced analytics) o energy curve balancing strategies , pumped hydro design and management , scalable concentrated solar thermal systems, delivering training on renewable energy skills, engineering, science, collaborating on policy frameworks, performance standards and regulatory environments , pursuing joint research, development and commercialisation of new renewable technologies o for example battery storage technologies, integrating variable and dispatchable generation, including remote electrification, market mechanisms including demand response initiatives, combining Australia’s expertise with India’s manufacturing capacity will help produce technologies and equipment at a lower cost , Coal India will need to expand capacity by raising environment/forest clearance limits, utilising excess available capacity and clear bottlenecks in rail infrastructure across main and connecting lines There is growth potential for Australian commodity exports, subject to a range of variables, notably price. Opportunities will emerge through diversifying into new products. There will be a growing market for services and technologies in areas where Australia is competitive, including to support the development of a resilient, low emissions energy sector in India. India is looking to invest offshore, including for energy security and price-hedging reasons.