State-controlled company Convergence Energy Services Ltd. plans to launch a $10 billion tender for 50,000 electric buses, which will help advance India’s plans to decarbonize public transport and help achieve its zero-emissions targets.
CESL Managing Director Mahua Acharya said such tenders are starting to look like infrastructure projects and local production of electric buses is expected to grow along with demand.
“This country is moving forward very, very quickly with its electric vehicle ambitions,” Acharya told Bloomberg Television. “Therefore, funding remains a challenge because it provides opportunities.”
CESL was established in 2020 to manage the solar and electric vehicle leasing business of its parent company, Energy Efficiency Services Ltd., which is an enterprise of four state-owned energy companies. These are the key firms playing a major role in India’s plan to reduce its total projected carbon emissions by 1 billion tonnes by 2030 as part of its goal of reaching zero emissions by 2070.
India, the world’s third-largest emitter, needs to build charging stations, improve network capacity, and redesign depots to accommodate electric vehicle adoption, Acharya said. She also cited the constant shortage of batteries as a problem.
According to Acharya, India can electrify all two-wheelers currently on the roads and complete the electrification of public buses in five to seven years. Earlier this year, CESL was awarded a contract to supply 5,450 electric buses on behalf of five state governments.
CESL is still seeking investors for its distributed solar business, which is currently funded internally, Acharya said. (Economic Times)