India’s passenger EV production is experiencing significant growth, with a 22.5 per cent year-over-year increase in 2024, reaching approximately 125,500 units, according to S&P Global Mobility estimates. An IBEF study suggests that with rising investments over the next 8-10 years, India is on track to become the largest EV market by 2030. Additionally, the Indian EV battery market is projected to grow from USD 16.77 billion in 2023 to USD 27.70 billion by 2028, highlighting the sector’s potential and the shift toward greener mobility.

However, the question remains—how green is this transition? While EVs are often seen as a renewable solution, the reality depends on their energy source. If the electricity used for charging comes from fossil fuels, the environmental benefits diminish. The true sustainability of EVs lies in ensuring that their power supply comes from clean and renewable sources, making energy infrastructure a critical factor in India’s green mobility ambitions.

Currently, India fulfils 46.3 per cent of its electricity needs by renewable sources, proportionately showing the real clean energy image of EVs that are using a charger having greener sources. Experts believe that only one-third of EVs are currently clean energy sources based as coal-based power still contributes 47.29 per cent to India’s electricity basket, as of 31 January 2025.

Additionally, challenges like double-digit transmission and distribution losses and grid instability persist. This raises a serious concern among stakeholders and offers a break on India’s clean mobility vision. Though, in the long term India may convert into a 100 per cent renewables powered country but in the current scenario experts weigh in for prompt action.

Smart Grid System
As per the ‘Smart Grid Mission,’ a smart grid is an electrical grid with automation, communication and IT systems that can monitor power flows from points of generation to points of consumption (even down to the appliances level) and control the power flow or curtail the load to match generation in real-time or near real-time. With increasing fluctuations, it is essential to ensure seamless integration of India’s expanding renewable energy capacity with EV charging infrastructure.

Devansh Jain, Chair – Wind Energy Committee, PHDCCI, said that it includes deploying energy storage solutions like battery storage and vehicle-to-grid (V2G) technology to balance supply and demand fluctuations. He added that Time-of-use pricing and AI-driven demand forecasting can optimize charging during peak renewable generation hours. Additionally, decentralised solar-powered charging stations and grid modernisation with digital controls will enhance efficiency.

Rakesh Jha, Partner, Energy Sector Solutions, BDO India, emphasised over policy support. He said, “Crucially, energy storage costs have been steadily decreasing, making large-scale deployment increasingly feasible. With robust government support for ESS and lower capital costs, integrating storage with smart grids will create a cost-efficient, self-sustaining EV ecosystem, ensuring a reliable and clean energy supply.”

Decentralised Renewable Energy
Decentralised renewable energy (DRE) refers to systems that generate, store, and distribute power locally using renewable sources like solar, wind, and biomass, offering energy independence, efficiency, sustainability and reduced transmission losses compared to centralised grids.

It can transform EV charging accessibility in rural and semi-urban areas by enabling independent, localized power generation without requiring expensive grid infrastructure expansion. Small-scale solar arrays, wind turbines, or micro-hydro systems paired with battery storage can create self-sufficient charging stations in remote locations.
Jain said, “These systems reduce dependency on centralized utilities, lower operational costs after initial investment, create local employment, and enhance community energy resilience.”

Green Energy Open Access
Devansh Jain believes that green energy open access will democratise clean power for EV charging by allowing charging operators to procure renewable electricity from generators at competitive rates directly, bypassing traditional utility monopolies. This market-based approach enables EV charging networks to secure dedicated green energy supplies through power purchase agreements, reducing costs and ensuring sustainability credentials.

By breaking down regulatory barriers between renewable generators and end-users, open access accelerates the transition to a distributed energy ecosystem where charging operators can choose their power sources based on price, reliability, and environmental impact rather than being limited to the default grid mix.

Peak Demand Challenge
Ensuring the reliability of green energy-powered charging stations during peak demand and adverse weather conditions requires a strategic approach. Rakesh Jha said that in India, most states experience peak electricity demand during the evening, while solar power, which is set to reach 175 GW by 2030, is abundant during non-peak hours. By integrating solar with other renewable technologies, it becomes possible to efficiently supply energy to EV charging stations during high-demand periods, he added.

To ensure continuous power during adverse weather events, hybrid energy systems that combine solar, wind, and energy storage can provide the necessary resilience. Technologies like BESS, Pumped Storage Plants (PSP), and concentrated solar power can be crucial in maintaining energy supply. Devansh Jain, stated, “Advanced energy management systems with predictive algorithms can optimize charging schedules based on weather forecasts and usage patterns. Finally, strategic placement of charging infrastructure in locations with complementary energy production profiles enhances overall system resilience.”

Policy Support
Strong policy support, including incentives for renewable-powered EV chargers, will accelerate adoption, creating a truly sustainable and self-sufficient energy-transport ecosystem. Jha said, “During periods of high renewable energy generation, EVs can store excess energy, and during periods of low generation, they can supply energy back to the grid (vehicle-to-grid or V2G technology). This bi-directional energy flow can enhance grid stability and optimise the use of renewable energy.