South Africa’s Charge pushes back off-grid chargers plan

From the newsletter

South African off-grid EV charging stations company Charge has pushed back the timeline to build 120 stations by one year due to regulatory challenges. The company had planned to build the stations by September 2025 but has so far done only one, taking roughly a year to build. It has now extended the completion target to 2026. 

• Charge has run into problems getting the necessary approvals from the South African national government and local authorities to set up the off-grid stations. The stations use renewable energy sources, primarily solar, to charge exhausted EV batteries.

• This case highlights the challenges that investors in Africa’s electric mobility – as well as renewable energy – have to surmount. In this particular case, Charge says there are conflicting regulations surrounding the project, making it costly and time-consuming.

More details

• Charge is building South Africa’s first network of off-grid stations relying primarily on solar and battery power. The company has explained the delays were because of local government requirements and tender rules.

• Despite the delay, Charge plans to roll out the next phase of stations across the country, following agreements with provincial governments in Limpopo, KwaZulu-Natal, Free State, Northern Cape, and the Eastern Cape.

• South Africa’s biggest grid-tied charging station providers — GridCars and Rubicon — have primarily installed their chargers on developed private properties, including malls, shopping centres, fuel stations, and accommodation.

• The country has an electrification rate of 87%, which means some regions have no access to electricity. Charge is targeting to supply such areas with charging stations that utilize solar to enable them to switch to EVs. As a pioneer in this space, the company’s success or failure will play a big role in determining the future of such stations in South Africa. 

• Yet, Charge’s dilemma highlights the challenge of navigating the complex regulatory environment in Africa, where the two-tier system of governance is prevalent. While national governments are usually in harmony with devolved units, there is often conflict in policies and enforcement. 

• This notwithstanding, there is a major gap for off-grid stations in Africa, where most countries are struggling to connect their huge populations to the grid. Luckily, the decline in global prices of solar panels and electric batteries is making it cheaper to set up these stations. Further, as demand for EVs continues to rise, investors in these stations will recoup their investments faster. 

Our take

• Having taken a year to build just one off-grid charging station, it is almost impossible for Charge to complete the remaining 119 stations by 2026. However, the company should take lessons from its experience on the first station to enable it to build the other stations faster.

• There will always be demand for off-grid charging stations in Africa even in countries that have achieved universal electricity access such as Algeria and Egypt. This is due to blackouts, which are frequent on the continent. This is especially the case for South Africa, which is struggling to meet its electricity demand.

• The future however belongs to hybrid charging stations, which combine electricity supply from the grid with their own generated power, mainly made from solar. Such stations will lower their electricity bills by using their own power and only reverting to the grid when the batteries are exhausted.