DNV, an independent energy expert and assurance provider, played a pivotal role in Macquarie Capital’s decision to invest in ChargeZone, a rapidly expanding Indian company specializing in battery charging infrastructure for electric vehicles (EVs).
Utilizing their expertise in technical due diligence (TDD), DNV’s project engineering team based in Australia spearheaded the assessment, supported by experts and resources from India, Singapore, and globally. The comprehensive evaluation encompassed reviewing proposed and existing EV charging infrastructure, analyzing operational performance, scrutinizing project delivery aspects, and assessing financial assumptions related to capital and operational expenditure.
The resultant report meticulously identified risks necessitating clarification or action pre-transaction, as well as those pertinent to maintaining asset value post-investment. This thorough analysis provided critical insights for Macquarie Capital, facilitating their decision to invest in ChargeZone and aligning with India’s objectives to decarbonize its energy and transportation sectors.
ChargeZone’s objective is to cater to the escalating demand for EV charging infrastructure propelled by growing consumer interest and manufacturing expansion in India. With the Indian government targeting 30% penetration of EVs in private vehicle ownership by 2030, the rapid deployment of charging infrastructure becomes imperative in mitigating ‘range anxiety’ among potential EV owners. Notably, each commercial charging point in India supports significantly more EVs compared to counterparts in the US and China.
Felix Liebrich, Project Manager and Team Lead at DNV, highlighted the unique challenges encountered during the project, particularly within India’s nascent EV charging industry. Leveraging DNV’s collective knowledge and experience from various global locations including Australia, Singapore, India, and the UK proved instrumental in overcoming these challenges.
Brice le Gallo, Vice President and Regional Director APAC, Energy Systems at DNV, emphasized the significance of due diligence in EV investment deals. Given the complexities of the EV market and the rapid pace of innovation, thorough technical assessments are essential for accurately evaluating asset and deal valuations.
The Economic Survey 2023 projects a substantial 49% compound annual growth rate in India’s domestic EV market from 2022 to 2030, with anticipated annual sales reaching 10 million by 2030. This growth trajectory is anticipated to generate approximately 50 million direct and indirect jobs within the industry by 2030, underscoring the immense potential and significance of EV investments in India.
