SA gets its first off-grid EV charging station

From the newsletter

Charge (formerly Zero Carbon Charge), an EV infrastructure provider, launched South Africa's first fully off-grid electric vehicle charging station yesterday. The station is powered by solar energy and has a battery system for backup. This is the first of 120 planned off-grid stations. But how cost-competitive are they compared to grid charging?

• The charging station will have six fast DC charging points and two slower AC chargers. Four of the DC chargers are liquid-cooled and can charge up to 480 kW each—double the fastest charging speed available in South Africa.

• Mid this month, the company allocated $513 million for EV infrastructure development in KwaZulu-Natal province, aiming to build at least 31 new charging sites across the province.

More details

• The charging stations also have a backup system that runs on hydrotreated vegetable oil, which boasts 90% lower emissions than diesel, ensuring continuous operation even if the batteries are depleted. As a bonus, drivers can enjoy WiFi connectivity while they wait.

• Beyond range, EV consumers are most concerned about charging costs and speed. And those who are environmentally conscious are particularly interested in charging their EVs with renewable energy. However, South Africa's grid is heavily reliant on coal. Research suggests that charging an EV using grid power can be more polluting than driving a petrol car. At the same time, the grid is already strained and has limited capacity to handle increased demand from EVs. Charge aims to address these concerns by providing affordable and clean charging solutions, particularly for those who prioritise sustainability.

• The EV charging space in South Africa is expanding rapidly. There are currently over 400 charging stations across the country, and the goal is to have a station every 150 km along major highways. However, most of these stations rely on the national grid. Rubicon and GridCars are the dominant players, with GridCars operating 171 stations and Rubicon over 83 as of September 2024.

• Increased EV adoption is expected to intensify competition in the charging market, especially on pricing. Generally, public charging costs more for faster DC charging compared to slower AC charging. Each company sets its own tariffs. For AC charging, Rubicon, Chargify, and GridCars all charge $0.33/kWh. DC charging costs $0.39/kWh at Rubicon and $0.41/kWh at GridCars. However, all these providers rely on Eskom's grid.

• Charge's off-grid approach offers a compelling alternative. Their stations will charge a low rate of $0.28 per session, irrespective of kWh, until January 2025, when their per-kWh pricing will be announced. Consumers expect lower costs compared to grid-tied options, but this remains to be seen.

• The future of grid-tied charging appears less promising due to escalating electricity prices. Commercial electricity costs have already increased by over 150% in the last ten years. Eskom continues to seek annual price increases, with a proposed 36.1% hike in April 2025, followed by 11.8% in 2026 and 9.1% in 2027.

• This trend gives off-grid charging companies like Charge a significant advantage. Combined with the decreasing cost of solar panels, off-grid charging has the potential to offer significantly lower prices and a more sustainable future for EV charging in South Africa.

Our take

• EV adoption is growing in South Africa. The sector is expected to grow even faster as the country moves quickly to establish itself as an EV manufacturer. The next problem would be to provide clean, sustainable, and affordable electricity for EV charging.

• Charge’s entrance pioneering off-grid charging in South Africa is futuristic. Eskom's grid is expensive and unreliable. Consumers would seek cheaper and reliable alternatives, and they are well set to capture this market. Interestingly enough, solar can be set up anywhere along the highways, farms, malls, and petrol stations and would give the grid a run for its money.

• South Africa aims to expand its industries in the future. This will require more electricity. EV charging demand might slow down this expansion. However, shifting EV charging off-grid would redirect the demand and allow other sectors to grow.