Hitachi ABB Power Grids sees big opportunity in Indian EV space

With over 70,000 buses above 6-tonne sold in 2017, the Indian bus market represents a larger share of the 430,000 buses above 6-tonne sold globally. If only a small percentage of these were to be electric, it could easily become the second largest market behind China.
Bruce Warner, Global Segment Manager Transportation Grid Integration, Hitachi ABB Power Grids

Buoyed by the government’s ambitious plan of reaching 30 percent EV penetration by 2030, Hitachi ABB Power Grids, the newly-formed joint venture between Hitachi and ABB, will focus on electric mobility. In an interview with Subhajit Roy, the company’s Global Segment Manager Transportation Grid Integration Bruce Warner talks about the acquisition, bottlenecks for EV adoption and the future of smart mobility. He expects that the EV industry demand will bounce back by the close of 2021.

Mr Bruce, congratulations on the successful completion of the joint venture and setting up Hitachi ABB Power Grids. How significant is this acquisition as far as the global energy business is concerned?
The joint venture has brought together two highly respected companies to create a new global power leader. Hitachi’s leading digital technologies merged with world-class power grids solutions to actively support the global transformation and decarbonisation of the energy system. We continue to serve the needs of customers – leveraging our global footprint, competence and the largest installed base in the T&D space where we are number 1, as well as present significant opportunities for them in terms of a broader portfolio and wider market coverage. Underpinned by a customer-focused mindset and a world-class R&D organisation, the entity will continue to anticipate future needs and co-create innovative products, systems and services.

The new entity will leverage Hitachi’s digital solutions portfolio, to expand its portfolio and extend its presence in sectors like mobility (e.g. electrification of railways and buses), industry (e.g. energy management and asset optimisation), smart life (e.g. smart cities, energy storage), and IT (e.g. software solutions and data centers) – all contributing to Social Innovation. Through Hitachi ABB Power Grids, Hitachi can further strengthen its Lumada business, incorporating energy solutions, and providing advanced digital solutions to the Hitachi Group’s customers for a sustainable society.

In summary, there are multiple opportunities for market development for the new JV such as:
• Combining Hitachi’s digital capability and portfolio with ABB’s world-class power technologies.
• Expansion and growth opportunities in sectors like Life, IT etc.
• Leveraging portfolio complementarity and front-end synergies e.g. rail, EV, renewables.
• Access to new markets and geographies (e.g. Japan).
• Financing opportunities for large infrastructure projects.
• Broadening service portfolio to generate growth.

How Hitachi ABB Power Grids plans to support public transport segment?
We already are playing an important role in railway and metro electrification all over the world with our pioneering power and digital technologies. In fact, in India, almost all metros run on our power grids technology today. We also offer world-class battery charging system to further advance zero-emission mass public transportation that charges bus battery in seconds as passengers get on and off the bus. Our TOSA e-bus charging solution reduces carbon emissions by 1,000 tonnes per year for 600,000 kms, cuts noise pollution generated by diesel buses and is a cost-effective solution for bus operators. We have just unveiled our game-changing Grid eMotion Fleet based on full grid-to-plug technology for public transport and commercial operators that will give them the unique capability to charge more vehicles while reducing their carbon footprint.

Battery powered electric buses are a leading solution to enable zero emissions and high energy efficiency. But they call for a new charging approach that fits into the existing depots for diesel buses that were not built with an EV charging strategy in mind. Our Grid-eMotion Fleet’s system charging infrastructure will make the electrification of bus fleets as easy as possible, so that operators can focus on fulfilling their primary mission of getting their passengers comfortably from A to B, while we care about the electrification journey. In the future, we could also look at lorries and heavy vehicles under our fleet charging solution.

It is a complete system – not just the individual charging products. It combines ground-breaking power electronics and digital technologies, with a sophisticated energy management system, harnessing Hitachi ABB Power Grid’s leadership to enable smart cities and sustainable mobility.

Globally, what is the current level of mass-market readiness for EV adoption?
The global eBus adoption is likely to triple by 2025. According to McKinsey, urban electric buses are surpassing the growth of every other electric-vehicle (EV) segment: they constitute the fastest-growing part of the EV market, with a compound annual growth rate of more than 100 percent since 2013, compared with 60 percent for fully electric passenger cars.

With more than 500,000 eBuses already in service today, and the number climbing daily, operators now need solutions that go beyond the charger to help them connect seamlessly from the grid to power their expanding EV fleets.

What’s your comment on the future of smart mobility in India?
India is on an ambitious journey to electrify 30 percent of its vehicle fleets by 2030 as proposed by the government think-tank Niti Aayog. Testing of operational feasibility of electric buses, cars, two-wheelers, rickshaws, taxis and goods vehicles, are already making in-roads. As compared to other countries, India is few years behind in terms of adoption, infrastructure, and regulations. However, the government has taken various measures to boost the domestic manufacturing segment. Schemes such as FAME and 100 percent FDI to electric bus manufacturers provide great incentives to lower the costs of electric buses to make it more affordable and facilitate their adoption in the country.

A significant portion of the EV industry is India is represented by SMEs and start-ups. With the country forecast to become the fourth largest EV market over the next 20 years, Indian start-ups have started taking on the opportunity. We are partnering with various stakeholders to advance smart mobility in the country from current levels.

With over 70,000 buses above 6-tonne sold in 2017, the Indian bus market represents a larger share of the 430,000 buses above 6-tonne sold globally. If only a small percentage of these were to be electric, it could easily become the second largest market behind China.

The increased interest in the sector has been further fuelled by Union Road and Transport Minister reaffirming India’s potential to become a major manufacturing hub for electric vehicles in the next five years. Altogether, it will open up more prospects for the Indian industry to pick up the shift in business.

What are the major bottlenecks for the EV adoption in India?
Major challenges for electric vehicle adoption in the country would be the unavailability of charging infrastructure, affordability – larger upfront cost compared with traditional vehicles – and range anxiety. However, we see them being overcome as globally countries realise the long-term benefits of e-mobility – clean energy and energy security, being few to name. Yet, the adoption doesn’t only mean front-end changes. It also means grid modernisation happening in tandem to support changing consumption patterns.

How are going to address these issues on the technology front?
While charging infrastructure must be augmented, the grid also has to be modernised to support evolving consumption patterns and rising demand. We know of cases when a spike in demand – many people plugging in their e-vehicles for charging at the same time – led to grid collapse in some countries. So, while we make progress in increasing charging stations, we also have to prime the grid for demand evolution, digitalise it with smart solutions that offer insights into asset performance and health. That becomes critical when we increasingly start drawing power from alternate energy sources like renewables and battery energy storage.

At Hitachi ABB Power Grids, we aim to co-create innovative energy solutions with grid owners and operators, leveraging combined capabilities in energy (like power grid equipment and asset management systems) and digital platforms like Lumada and with a focus on intelligent grids that support sustainable energy transition.

Tell us more about the Hitachi-ABB Power Grids’ new EV fleet charging systems for e-mobility.
Grid eMotion Fleet delivers unprecedented scalability, space savings and operational efficiency for anyone managing public transport and commercial EV fleets. It will not only accelerate the global uptake of safe, sustainable and smart transport, but will lead to cleaner air and an enhanced quality of life for all, enabling a stronger, smarter and greener future for generations to come.

It has the unique ability to charge more vehicles simultaneously while reducing the space needed for EV chargers by up to 60 percent. It also requires up to 40 percent less depot cabling.

What are the trends you foresee for EV industry post-COVID-19?
The COVID pandemic has caused a temporary dip in the market but we expect demand to bounce back by the close of 2021. However, long-term trends stay intact. Awareness of the need for cleaner, safer, and more efficient systems will drive demand for EVs in public transportation. We also hope to see a shift from product-based charging to system-based charging where our Grid eMotion fleet will play an important role. Besides, we could see wireless connectivity being used as ‘bonus’ working time on public transport; smart bus stops; internet-connected safety and security sensors (incl. ticketless systems); public autonomous transport, among others.

Strongest points about Grid eMotion Fleet are:
 It leverages the 120+ years’ grid integration expertise of a global leader in the sector, Hitachi ABB Power Grids, and therefore has been designed to connect directly with the DC grid and remove the complexities of grid integration for operators.

 It is a complete system – not just the individual charging products – combining ground-breaking power electronics and digital technologies, with a sophisticated energy management system.

 It harnesses Hitachi’s leadership to enable smart cities and sustainable mobility.