RMI: Indian DISCOMs Must Step Up to Power EV Future

RMI: Indian DISCOMs Must Step Up to Power EV Future

India’s electric vehicle (EV) charging ecosystem is at a critical juncture, with power distribution companies (DISCOMs) expected to play a pivotal role in expanding infrastructure to support the country’s electrification goals, according to a new report by the energy think tank Rocky Mountain Institute (RMI).

Despite growing momentum—EVs accounted for 6.4% of new vehicle sales in 2023—they still comprise less than 1% of the total vehicle stock. India aims to achieve 30% EV penetration by 2030 and energy independence by 2047, but RMI warns that substantial infrastructure gaps remain.

To meet future demand, the report estimates India will need 1.9 million public chargers and 275,000 battery-swapping stations by 2040. Currently, over 25,000 public charging points and 2,600 battery-swapping stations have been deployed nationwide.

DISCOMs Positioned to Lead

RMI highlights the strategic role of India’s 70+ DISCOMs, which are uniquely positioned as power suppliers to EV infrastructure. With India’s electricity demand rising over 50% in the past decade, DISCOMs are seen as critical actors in ensuring the power grid evolves alongside rising EV adoption.

The report outlines four priority areas for DISCOM action:

• Forecasting EV demand through long-term grid planning to support infrastructure upgrades.
• Streamlining permitting and interconnection to reduce bottlenecks for charge point operators (CPOs).
• Piloting smart technologies like smart meters and chargers to manage load through demand-side responses.
• Exploring new business models, including public-private partnerships and concessional land allotment for charging hubs.

Some DISCOMs could also evolve into CPOs themselves, managing and operating charging networks—similar to trends seen in China and Norway, where utility involvement significantly accelerated EV infrastructure deployment.

Hurdles Remain

However, the report cautions that several barriers could impede DISCOM-led expansion. These include:

• Grid stress concerns, though EV charging is projected to form just 3% of total electricity demand by 2031–32.
• Opaque cost structures and interconnection delays, which discourage private investment.
• Low utilisation rates and land constraints, particularly in urban centres.
• Lack of affordable financing, which hampers project viability.

Coordinated Action Needed

While India has issued enabling policies such as the EV Charging Guidelines and PM E-DRIVE, the report stresses the need for greater inter-agency coordination. Planning remains fragmented, and DISCOMs must be more actively engaged in shaping policy frameworks and standardising operational processes.

“DISCOMs are at the centre of India’s EV transition,” the report states. By adopting innovative models, improving transparency, and collaborating with stakeholders, power distributors can catalyse EV infrastructure growth, reduce system-level costs, and strengthen the power grid in the long term.

The report concludes that with targeted action and cross-sector alignment, DISCOMs have the potential to become cornerstones of a resilient, inclusive, and scalable EV ecosystem, advancing both climate goals and energy system resilience.