EVs Are Coming. Is India’s Power Infrastructure Ready?

Everyone talks about EVs: new launches, battery tech, price drops. But what gets missed is what makes EVs actually work: power. Not just the electricity, but the entire infrastructure behind it: the grid, the storage systems, and the quiet players keeping it all running. Because the truth is, India’s EV ambitions hinge less on how many cars we make, and more on how reliably we can charge them. Without strong transmission lines, smarter grids, and large-scale batteries, even the best EV rollout hits a wall.

In the sections below, we look at the real story powering this transition, from the publicly listed utilities and startups shaping the grid to the policy moves and storage innovations that rarely make headlines but matter just as much.

EV Growth vs Grid Readiness

Electricity demand is soaring. Is the grid ready to keep up?

India’s power grid is expanding rapidly, but demand is surging even faster. Analysts project national electricity demand to hit ~273 GW by mid-2025, with peak load already near 250 GW in 2024. At the same time, India targets 500 GW of renewable capacity by 2030, which strains a grid designed for slower growth.

Electric vehicles will add tens of terawatt-hours of new load; one report forecasts about 38 TWh of EV charging demand by 2031–32 (with peak demand around 366 GW). This implies new daily and seasonal peaks, especially overnight charging, and challenges in balancing wind/solar variability.

India needs more power plants and a smarter, reinforced grid. Past blackouts have shown that transmission bottlenecks or lack of storage can cripple power delivery.

Battery Storage: Bridging the Peak

Smart batteries are emerging as a new layer of infrastructure.

A new breed of grid-scale batteries is emerging to shave peaks and absorb renewables. For example, Mumbai startup PUREnergy unveiled a 5 MWh containerised battery called “PuREPower Grid” in early 2025. The system includes integrated solar panels and AI-based controls to stabilise local networks. It’s designed to support EV fast-charging without costly transformer upgrades.

Nationwide, similar projects are gaining traction. NTPC’s trading arm, NVVN, doubled a tender to 500 MW/1,000 MWh of grid-connected Battery Energy Storage Systems (BESS). These batteries will store cheap off-peak power and discharge during demand spikes, reducing stress on grids and costs for distribution companies.

State regulator MERC has approved 100 MW of BESS across 10 sites in Mumbai for Tata Power. These systems will back up metro rail, airports, hospitals, and data centres. By storing night-time power and releasing it during high-demand hours, BESS helps manage peak load and reduce the cost of power purchases.

That said, the gap remains stark: India currently has about 4.7 GW of pumped-hydro and just 0.2 GWh of BESS – far short of the 60+ GW needed by 2030.

Long-Duration Innovations

From CO₂ batteries to pumped hydro–storage is evolving.

India is exploring advanced storage technologies for 8–10 hour duration needs. NTPC recently contracted a 20 MW/160 MWh CO₂-based battery project using Energy Dome’s design. This “CO₂ Battery” offers 100% depth of discharge, avoids lithium/cobalt, and functions like a pumped-hydro alternative – enabling round-the-clock dispatch of solar/wind energy.

In parallel, India is ramping up traditional pumped hydro capacity – analyses suggest 26 GW will be needed by 2032 to support the EV-driven grid.

In short, both short-duration lithium-ion systems and long-duration alternatives are being deployed to create a renewables-ready, EV-enabled power backbone.

Utilities Stepping Up

From legacy powerhouses to EV enablers:  here’s who’s leading.

• CESC Ltd (Kolkata): Running pilot EV charging projects and planning public chargers across the city. Also exploring battery storage for green power.
  
• Tata Power: Approved for 100 MW of BESS in Mumbai to protect critical infrastructure. Its renewable arm (TPREL) signed an MoU with ONGC to co-develop storage, grid services, and EV charging.
  
• NTPC (PSU): Through NVVN and NTPC Green Energy, the firm is developing solar + storage projects, trading-ready BESS, and innovative tech like the CO₂ battery.
  
• Power Grid Corporation: Upgrading to ultra-high voltage lines and installing EV chargers at substations. Focused on digital substations to handle renewable flows.
  
• State Discoms: Rolling out urban chargers, supporting V2G pilots, and partnering with startups. Plus, to serve less-dense areas, they’re trialling solar-powered kiosks co-located with telecom towers, battery-swap outposts for quick pack changes, and community-run charging hubs, models that sidestep grid-capacity limits and create new rural revenue streams.

The public conversation may focus on EVs. But it’s the power sector, from generation to distribution in cities and villages, that’s quietly making the transition possible.

Policy Push and Incentives

The EV shift is backed by serious government muscle.

• FAME-II Scheme – ₹10,000+ Cr towards EV adoption and chargers. Planned ~2,622 public stations across 62 cities by 2022.
  
• Battery PLI Scheme – ₹18,100 Cr for advanced battery manufacturing. As of early 2025, ~40 GWh of capacity is under contract, led by players like Reliance New Energy.
  
• Battery Recycling Rules – Producers must recycle up to 90% of EV batteries by 2026–27, ensuring a circular loop and reducing raw material demand.
  
• State Policies – States like Maharashtra mandate DC chargers every 25 km, EV-ready building codes, V2G pilots, and viability-gap funding. Central standards (BIS) and a proposed EV communication protocol will harmonise efforts.

The Hidden Costs of “Green”

Cleaner mobility doesn’t mean clean supply chains.

EVs cut tailpipe emissions, but battery production has ethical and environmental costs. India currently imports nearly all lithium and cobalt minerals that are water-intensive to mine and sometimes extracted under exploitative conditions, particularly in Congo.

India is surveying lithium deposits (e.g. in Rajasthan, J&K) and promoting sodium-ion alternatives to reduce dependency. Battery Waste Management Rules require >70% recycling by 2026–27, with domestic content targets of 20% by 2030.

These rules aim to keep batteries in a circular loop, minimising waste and import dependency.

The Road Ahead, Literally 

Where the real EV opportunity lies for investors.

India’s EV transition is also an energy transition. By 2032, the country is expected to have around 900 GW of total power capacity, nearly double what we have today, and about half of it from renewables. EVs may account for just 3% of electricity use by then, but the impact on the grid will be far greater, as charging patterns reshape when and where power is needed.

With 28 million EVs projected to be on Indian roads and a $36 billion battery storage market emerging, the bigger opportunity isn’t just in the cars; it’s in the ecosystem that supports them. Here’s where the action is likely to unfold:

So, India’s EV journey isn’t just about getting more vehicles on the road; it’s about whether the road itself is ready. The real work is happening behind the scenes: in grid upgrades, battery storage pilots, and regulatory frameworks that often sound dull on paper but are critical in practice. For investors, the opportunity may not lie in chasing the next EV brand, but in the ecosystem quietly powering them: utilities, transmission companies, storage providers. Because as this transition plays out, it’s the silent enablers who’ll end up driving the story forward.

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