In similar pattern, TCO comparison in fig. 8 suggest E3W with swapping station more than 60% saving from ICE and 25% from EV fixed battery. This has been dominating by Indian market and huge potential to replace ICE/CNG rickshaws by E- rickshaws for logistics, fleet operation and last mile delivery companies (e.g. Euler, Bajaj, Piaggio, Mahindra etc).
Note:
Assumptions reported from Invest India report & discussion with Battery Swapping Operators:
Comparison between a 100 CC petrol Scooter v/s equivalents E2W (48V,45Ah) with swappable battery:
- Daily running – 40 km
- Running cost of ICE Scooter- INR 2.5/km (Avg. fuel cost INR 100/L, Avg. drive of 40km/L)
- Running cost of EV Scooter – INR 0.70/Km (Per swapping charge cost INR 48, Avg. drive of 70km/charge)
- 20% residue value of on road cost considered for ICE and 10% considered for EV scooter after 5 years of life cycle period.
- Maintenance costs for ICE scooters – INR 3000/year
- Maintenance cost for EV scooters – INR 2000/year
Comparison between a 250 CC e-rickshaw v/s equivalents E3W with swappable battery
- Daily running – 90 km
- Running Cost of ICE Scooter- INR 4/km (Avg. fuel cost INR 100/L, Avg. drive of 25km/L)
- Running cost of swapping scooter – INR 0.95/Km (Per swapping charge cost INR 80, Avg. drive of 85km/charge)
- 20% residue value of on road cost considered for ICE and 10% considered for EV rickshaw after 5 years of life cycle period.
- Maintenance costs for ICE rickshaw – INR 24000/year
- Maintenance cost for EV rickshaw – INR 4000/year
The five-year TCO of E2W and E3W predicts a number of trends, with battery swapping is economical than point charging with fixed infra and ICE vehicle. However, this cost only reveals the picture of B2B business transactions. TCO cost defined over the 5 years of battery and vehicle life cycle period. Assumptions for the calculations are tentatively considered from running B2B businesses with market swapping operators. Enhanced public charging infrastructure at lower levels and improved home charging facilities provide reliable benefits for B2C customers in India.
Investigating the Potential Opportunity for Battery Swapping Business
Exploring the opportunity for battery swapping with existing EV ecosystem involves leveraging existing strengths and resources to integrate battery swapping solutions effectively at DISCOMs, OEM, Charge Point Operator (CPO) and Aggregators end. This can create a comprehensive EV infrastructure network that complements the evolving Electric Vehicle (EV) landscape and aligned to central & state EV policies in India. Here’s a detailed exploration highlights of the suitability:
Market Position & Trust, Synergies and Network Presence:
- CPO companies like JioBP, TATA Power, Adani Total Gas, Charge Zone, Terra and Shell can capitalize on their strong market reputation and brand to attract a larger customer base and ensure high-quality infrastructure delivery for the adoption of battery swapping technology.
- OEM companies such as Exicom, Delta, Okaya, ABB, and Siemens can leverage their extensive market experience to develop robust interchange infrastructure, thereby alleviating consumer concerns regarding grid interconnections.
- State and private distribution companies (DISCOMs) can implement their energy transition strategies to reduce reliance on traditional power sources, transitioning instead to integrated green energy sources.
- State and central agencies should ensure timely approvals and clearances to facilitate the smooth deployment of swapping stations.
Business Model Proposition for E2W & E3W Battery Swapping:
- Infrastructure as a Service (IaaS): Discoms, municipal bodies, retail outlets, commercial or industrial idle or free spaces etc., can rent out on lease to swapping operator at price of per sq ft or revenue sharing mode with respect to units consumed or used. E.g., Sun Mobility and Battery Smart tied up with Tata Power Delhi.
- Battery as a Service (BaaS): Swapping operators to offer swappable batteries as an option to customers in collaboration with vehicle OEM to reduce burden of the heavy vehicle cost. Vehicle OEM & supportive interchanging station operator only eligible for the process. E.g., Sun Mobility tied up with Hero.
- Mobility as a Service (MaaS): Vehicle OEM provides end to end solution to customers with more reliable interoperability solution on opex mode. This will reduce the overall operational cost and improve the productivity by increasing wait over time. E.g., Gogoro tied up with Swiggy.
- Comprehensive Service (IaaS & BaaS): Charge point operators using idle land or free office spaces to utilizing for setting up swapping stations for internal as well as external customers. They also offer swappable battery solution in collaboration with vehicle OEM to encourage customer for e- vehicle purchase at lower cost and reliable solution. E.g. JioBP tied up with Exicom/Magenta.
- Energy as a Service (EaaS): DISCOMs or IPP can offer intrastate or intra city network swapping operator with round the clock renewable energy power at lower tariff. This will help to reduce the dependency on higher tariff dedicated power supply without hampering present load demand. e.g., Tata Power and Adani Power.
- Software as a service (SaaS): Third party aggregators can offer platform or CMS system that can integrate larger EV ecosystem and provide access with minimal subscription model or pay per use model that can be monthly or yearly basis, which can be incentivize on their larger usage. e.g. Numocity.
Key Value Proposition of Swapping Business
Based on EV ecosystem in India some key value propositions of a battery swapping business; these primarily include:
- Increasing compatibility across lower electric vehicles segments and swapping stations
- Improving network of swapping stations in the city
- Efficient battery utilization for higher throughput
- Ensuring battery health management for higher ROI per battery unit
- R&D focused approach for new trends & technology
- Seamless customer experience to ensure higher retention rate
- Govt. initiatives and support for swapping operators
Conclusions
BSO are joining forces with Discoms, OEMs, and aggregators to establish a robust business model for the battery swapping industry through Infrastructure as a Service (IaaS), Battery as a Service (BaaS), and Software as a Service (SaaS). This collaborative effort encompasses diverse stakeholders and outlines the business model’s adaptability concerning profitability, scalability, and market opportunities.
The opportunity for battery swapping in India is promising, particularly for the lower EV segment. The suggested flexible business model introduces adaptable payment plans, extended commitments with dependable subscriptions, round-the-clock availability, and uninterrupted service. This approach aims to redefine the battery swapping business, ensuring a versatile and sustainable framework.
Concluded
Eshwar Pisalkar is a Team Lead at Reliance BP mobility Limited for EV/BSS infrastructure development in India. He has 10+ years of industrial and research experience in the field of renewable energy solar, EV, BSS and Energy efficiency. He has a Master’s degree in Power Distribution with Smart Grids and Bachelor’s in Electrical Engineering. He is a certified Energy Manager and Solar Engineer in India.
