Electric Vehicle Operations and Lending for a Vibrant Ecosystem

dropped

Failure

The development objective of the Electric Vehicle Operations and Lending for a Vibrant Ecosystem (EVOLVE) is to foster the transition to sustainable electric vehicles in the two and three-wheeler segments. The Project will take a three-pronged approach to address current challenges. First, it will address the key market failure underlying the lack of access to affordable commercial financing for e-2/3Ws and associated charging infrastructure through a risk-sharing program (RSP), which will offer credit-enhancement and on-lending products to a diverse range of participating financial institutions (PFIs). End borrowers are expected to include, inter alia, micro, small and medium enterprises, leasing companies, fleet operators, aggregators, and charging-as-a-service (“CaaS”) and battery-as-a-service (“BaaS”) businesses. Micro enterprises include individual, driver cum owners with mandatory Udyam Aadhar registration, a unique registration mechanism for MSMEs. PFIs will offer reduced interest cost and lend more actively to women borrowers. EVOLVE will systematically embed and test de-risking measures to improve the ability of the PFIs to appraise and price risks, and build a track record in e-2/3W lending, thereby moving towards a self-sustaining EV financing ecosystem. Second, EVOLVE will contribute to addressing barriers and fostering key enablers by leveraging the large-scale data generated from the EVs financed under EVOLVE RSP to help policy makers in framing the EV transition, help consumers make informed decisions about switching to EVs, and mitigate lenders’ concerns over lending to EVs, and by building the capacity of the Program Manager and PFIs. EVOLVE will also contribute to the knowledge base in key areas of sustainability such as RE integration, effective lifecycle management of batteries, and facilitation of women’s access to financing to promote vehicle ownership, and women’s labor force participation associated with e-2/3Ws. Lastly, EVOLVE will provide the scale necessary to make the aggregation of carbon credits viable, which could monetize GHG emissions reductions, a key positive externality of EVs. EVOLVE would be designed with an open architecture, to allow other financing agencies and donors with specific interests to benefit from its structure. SIDBI, a pan-India financial institution, will perform the role of ‘Program Manager’ at the national level, and establish and implement the EVOLVE RSP.

FY17 - Energy and Extractives,FY17 - Information and Communications Technologies,FY17 - Transportation

World Bank Group

Project

Energy Storage, Automotive, Electric Vehicles (EVs), Commercial, Government