Eskom to install EV charging stations

From the newsletter

South Africa’s national power utility Eskom is aiming to install ten EV charging stations across the country. The company will use the stations, part of a pilot project, to charge its EVs but will also open them for public use. Eskom ordered 20 EVs in 2024 & has received three of them while the remaining 17 will arrive in a fortnight.  

• Eskom, like other power utilities across Africa, is targeting to increase revenue from EV charging-led electricity consumption. This, it hopes, will help offset the stinging loss of customers resorting to own-source electricity generation.  

• Power utilities also view EVs as an opportunity to better manage their grid load. Due to the rise of home charging, electricity demand will increase during the night, a major boost as generation during this period is often curtailed due to reduced power use activities.

More details

• Eskom is installing both super-fast DC chargers and slower dual AC chargers, optimally sized for charging fleet vehicles overnight and employee vehicles for workplace charging during the day. The chargers that have already been installed have recharged nearly 3,500 kWh since August 2024.

• The power utility hopes to fully electrify its fleet by 2035, with short-term goals of electrifying 10% of its vehicles in 2025/26 and 50% by 2030. The company worked with the University of Johannesburg to develop its electrification strategy, including vehicle type and recommended deployment areas.

• Eskom, the largest electricity producer in Africa, stands to benefit significantly should the adoption of EVs in South Africa and the region hit a critical mass. A number of utilities in Africa have also taken a similar approach. Kenya’s electricity utility, Kenya Power, has also installed charging stations at two locations in the capital Nairobi and plans further expansion across the country.

• This effort has however not been limited to just electricity utilities or government-owned companies. A growing number of private corporate entities such as banks and oil and gas companies are not only transitioning their fleet to EVs, but are also installing chargers.

• This public-private collaboration will prove critical in expanding the continent’s EV charging infrastructure. It fast-tracks the efforts being made by for-profit investors in EV charging stations. This is key, as many charging stations on the continent are loss-making. With their deep pockets, companies like Eskom and Kenya Power can afford to set up these stations faster.

• But a major challenge for Eskom – and other utilities across Africa – is tackling frequent power outages, both planned and unplanned. These outages, which can often last for hours or even days, threaten the reliability of their charging stations. In this sense, they could borrow a leaf from private firms that are incorporating solar PV in their stations. 

Our take

• A major reason why utility companies are well positioned to roll out EV charging stations is their vast network of properties across their jurisdictions. Companies like Eskom and Kenya Power own or lease thousands of pieces of land hosting power substations. These should be used to build new stations, especially in remote areas.

• Some utilities currently only pay lip service to EVs, failing to fully grasp the opportunity they offer to increase their electricity sales. In Kenya for instance, where the penetration of EVs is still negligible, they still constitute 0.01% of the annual power demand. Looking ahead, EVs are set to become a significant revenue driver for these companies.

• In the grand scheme of things, African governments or their owned entities have no capacity to sufficiently construct charging stations. Their priority, therefore, should be to create an enabling policy environment that would allow private enterprises to invest in charging stations and thrive.