EV infrastructure isn’t just about installing charging stations with heavy loads. The biggest obstacle in Pakistan is the cost of electricity, which has now reached nearly PKR 70 per unit. And that’s the cost of electricity delivered by distribution companies.
EV infrastructure providers would need to cover additional costs and earn some profits too, thereby further elevating the cost of electricity for EV charging purposes (assuming no government intervention). However, if the government intervenes to keep pricing low, we are talking about another source of circular debt, discouraging private investors unless returns are guaranteed, like IPPs.
The already high cost of electricity doesn’t leave much savings on the table for 4-wheeler EV buyers. Let’s take the Deepal L07 as an example. It has a battery capacity of 67 kWh and a range of 540 km. Bear in mind that the EV range numbers are quoted under ideal conditions; the number usually drops when the AC is turned on or other factors come into play.
One full charge of the battery should cost 67 x 70 = PKR 4,700.
Assuming 50 km of running in a day, the cost of electricity per day should be PKR 435.
Assuming a mileage of 7 km/liter, a gasoline car should cost PKR 1,800 per day.
Daily savings = PKR 1,365
Monthly savings = PKR 34,125
Annual savings = PKR 409,500
On the other hand, the upfront price of EVs is higher compared to their gasoline counterparts. The Deepal L07 costs PKR 15.5 million. We can comfortably assume that this is a premium of PKR 4 million.
We can calculate the payback period as 4,000,000 / 409,500 ≈ 10 years.
I feel that this payback period is absurd, and these calculations assume PKR 70 per unit of electricity. EV adoption is high in countries where;
1) government incentives are in place,
2) income levels are high, and
3) environmental conservation pushes exist.
I believe Pakistan doesn’t tick any of these boxes.