by: TN Media News:
Investors in Pakistan are reluctant to establish electric vehicle (EV) charging infrastructure due to the high cost of electricity, hindering the growth of such facilities in the country.
Despite government initiatives and an increase in EV presence, only eight charging stations exist, and none have achieved profitability. The pricing disparity, where urban stations purchase electricity at higher rates (Rs90 to Rs105 per unit) than the selling prices (Rs75 to Rs100 per unit), has prevented any of the stations from breaking even.
Dr. Naveed Arshad of LUMS Energy Institute expressed concern over regulatory constraints imposed by the National Electric Power Regulatory Authority (NEPRA), mandating specific pricing for charging stations.
NEPRA officials argue that the pricing model ensures profitability, but critics warn it may discourage potential investors. Additionally, EV owners’ preference for charging at home, where tariffs are lower, and the small size of the EV market hinder charging stations from achieving economies of scale.
This, coupled with the significant initial investment required, raises concerns about the government’s commitment to promoting electric vehicles.
