Is Africa ready for vehicle-to-grid charging?

From the newsletter

South African electric vehicle charging company Zimi Charge has secured a grant of €280,000 ($317,200) from EEP Africa to launch Africa’s first commercial vehicle-to-grid (V2G) charging technology. Zimi says the pioneering project will showcase how EVs can help stabilise South Africa’s fragile grid, support energy resilience, and accelerate the clean energy transition. 

• Vehicle-to-grid charging is a technology that enables energy to be pushed back to the power grid from the battery of an EV, with the EV essentially serving as a battery to store energy. With V2G technology, an EV battery can be discharged based on different signals – such as energy production or consumption nearby.

• While V2G technology is taking root in the US and other developed economies, it is a new concept in Africa. Most African countries do not envision their power grids being fed by households or EVs. Even for those like Kenya that have net metering for individuals to feed back electricity to the grid, it does not offer monetary compensation, meaning V2G would not give direct economic benefits. 

More details

• Zimi Charge was established in 2021 and is headquartered in Stellenbosch, South Africa. The company provides Charging-as-a-Service (CaaS) solutions, catering to logistics, field services, and private fleets. It offers AC and DC charging stations and incorporates solar and battery storage solutions to deliver cheap energy to charging stations.

• “As South Africa faces persistent energy challenges, V2G presents a transformative opportunity to reimagine how we generate, store, and share power. We are grateful to EEP Africa for backing this innovation, and we look forward to demonstrating its impact,” said the firm in a statement following its grant receipt. 

• As V2G technology is new to Africa, not many people on the continent are aware of its potential. Similar to conventional charging, the EV is connected to a home charging station to draw power from the grid for charging its battery. This is typically done during off-peak hours when energy demand is low, and electricity is relatively cheaper.

• Advanced software systems, integrated with both the grid and the EV, constantly monitor the state of the national power grid. During periods when there is an excess supply of electricity, the software triggers the EV to charge its battery, effectively storing the surplus energy.

• During times of high energy demand or supply shortages, the software can instruct the EV to return the stored energy from its battery back into the grid. This helps balance the grid, preventing potential blackouts and maintaining grid stability.

• While Africa has dozens of charging stations companies such as Rubicon and GridCars (South Africa), ARC Ride and EVChaja (Kenya), Infinity EV and Ikarus Electric (Egypt), Max and Siltech (Nigeria) among others, these companies are yet to adopt the V2G technology. Further, the number of EVs that have this capability also remains minimal.

• The potential for V2G charging in Africa is significant, but it will likely take many years to gain traction. First, countries must develop and adopt policies that support consumers feeding electricity back to the grid. Second, the number of EVs that support the technology must increase in the market. Further, the technology must make economic sense for charging providers and EV owners. 

Our take

• The success of Zimi Charge’s V2G technology will depend heavily on policy reform. South Africa and other African nations will have to revisit their energy regulations to enable bidirectional energy flow and establish incentives for feeding power back to the grid. This could gradually open pathways for wider adoption of V2G across the continent.

• The uptake of V2G technology will rely on the availability of EVs equipped with the necessary hardware and software. We could see global manufacturers introducing more V2G-compatible models to the African market as interest in fleet electrification grows, especially for logistics and private fleets.

• Despite its potential, the technology’s economic case must be strengthened. Zimi Charge will need to demonstrate clear financial benefits for fleet operators and energy providers. Overcoming high costs and limited immediate returns will be critical for scaling the technology in Africa’s price-sensitive markets.