Islamabad (TDI): The Power Division on Wednesday announced that for the first time in the country’s history, electricity prices for EVs have been reduced by 44% besides kicking off implementation process of the regulations for establishing EV charging stations and battery swapping points.
These regulations have been introduced under the Power Division’s National Energy Conservation Authority (NEECA), with an official gazette notification issued, the authority informed.
An official statement said that the electricity tariff for charging stations has been reduced from PKR 71 per unit to PKR 39.70 per unit.
The reduction in per-unit electricity rates from PKR 71 to PKR 39.70 for charging stations will allow up to threefold savings in travel costs compared to petrol and other fuels.
This will likely result in a significant reduction in fares. Additionally, reduced reliance on petrol and other fuels will save substantial foreign exchange.
Power Division and Estimates
It is estimated that there are currently 10 million motorcycles in the country, consuming $6 billion annually on fuel.
Converting these motorcycles to electric technology, which costs an average of PKR 50,000, will enable a return on investment within three to four months while saving billions of dollars in foreign exchange.
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Similarly, the use of electric technology in three-wheeled vehicles (rickshaws) is expected to significantly reduce urban travel costs, leading to lower fares and helping to curb harmful emissions, thereby addressing air pollution.
The reduction in travel costs will also positively affect urban goods transportation, potentially reducing the prices of essential commodities.
This revolutionary initiative by the Power Division is expected to bring positive changes to travel-related costs and operations.
The establishment of charging stations and battery swapping points across neighborhoods will also create new business opportunities.
Permits for setting up charging stations or battery swapping points can now be obtained within just 15 days.
The Power Division’s subsidiary NEECA has established a one-window system, and registration can now be completed online via their website.
To ensure a competitive market and facilitate both local and foreign direct investment, these regulations have been simplified, with the registration fee set at only PKR 50,000.
These regulations are estimated to help achieve a target of 30% EV adoption by the year 2030.
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The regulations support five levels of charging technology, providing equal opportunities for global and regional EV manufacturers.
Special attention has been given to the safety and maintenance of charging stations and battery swapping points, with regular monitoring and audits planned.
The introduction of discounted electricity tariffs and regulations related to EV charging stations will create new profitable business and investment opportunities, generate employment, and strengthen the country’s economy.
