The current state of loadshedding in South Africa makes the prospects for the implementation of electric vehicles in South Africa bleak, said Petri Redelinghuys, founder at Herenya Capital Advisors.
“I think that we have too many other macro problems at this stage. For example, a big problem is the steady supply of electricity in South Africa currently,” he added.
Jaguar is one of the forerunners in implementing electric charging stations in South Africa, according to Motsamai Mollo, the vehicle development engineer at Ford motor company South Africa. Jaguar’s I-Pace series is the newest model on the market. This charging station is one of many in Cape Town CBD, South Africa. PHOTO: Heléne Leonard
Current electric vehicles in South Africa
“A hybrid or electric vehicle is cheaper when you compare the price with Internal Combustion Engines (ICE). With my car, which is a hybrid, when you brake the battery charges so I don’t have to worry about driving long distances that much. And it uses less petrol,” stated Arnold Prinsloo, owner of a Mercedes GLE 450.
BMW had founded their ‘i’ sub-brand of BMW in 2011 to design and manufacture plug-in electric vehicles. The company initially released two vehicles: the i3 all-electric car and the i8 plug-in hybrid. The i8 has been discontinued. However, the i3 is still on sale, stated Eon van Zyl, vehicle sales executive at BMW Stellenbosch.
“When you compare an electric vehicle to an ordinary car that uses seven litres of fuel per 100 kilometers, the electric vehicle runs R0,78 cheaper,” stated Van Zyl.
Problems facing electric charging stations in South Africa
There are 10 million electric vehicles globally, according to a Business Tech article. The only registrations in Africa were exclusively in South Africa and totalled 1,509 cars through 2020.
Redelinghuys believes that loadshedding is one of the main problems facing the shift to electric vehicles in South Africa.
“No one is going to build charging points unless there are electric cars and no one is going to buy electric cars unless there are charging points,” said Redelinghuys.
Companies like Royal Dutch Shell have done a tremendous amount of work so far on implementing electric charging stations globally, he said.
“They [Royal Dutch Shell] own 13 000 electric charging points all throughout Europe and another 10 000 stations in the United States of America,” stated Redelinghuys.
If a big company like Royal Dutch Shell can buy into the infrastructure that is needed in South Africa to enhance the prospects of electric vehicles, then it would enhance the growth of electric vehicles in South Africa, according to Redelinghuys.
“One of the big problems we’re going to have is that type of infrastructure. There are petrol stations everywhere,” stated Petri Redelinghuys, founder of Herenya Capital Advisors. AUDIO: Heléne Leonard
According to Redelinghuys, “not every charging station needs to be fitted with a charging point”. So it will be easier to convert petrol pumps into electric charging points, he said.
“But that is going to be a massive investment and unless you have companies like the traditional oil companies to join, it might not necessarily be able to share location,” said Redelinghuys.
A vast amount of infrastructure and investment needs to take place, like a company such as Royal Dutch Shell changing their petrol stations into electric stations, otherwise, it is not viable to have an electric vehicle if there is no place to charge it, said Redelinghuys.
Alternative energy is the only solution to South Africa’s growing problem regarding a constant energy supply, according to Chris Yelland, independent energy analyst, and managing director at EE Business Intelligence.
“I don’t think Eskom’s current grid will be able to sustain electric charging stations in the near future. Eskom is going to need a new generation capacity. Including public-private partnerships and other energy producers. And literally thousands of embedded generators,” stated Yelland.
“Petrol is a dying game”
“The difference between hybrid cars and electric vehicles is that an electric car runs exclusively on electric energy stored in a battery, while a hybrid car runs on a combination of electricity and conventional fuel,” stated Van Zyl.
All the new energy needs to come from renewable energy sources. There is no point in charging from the grid from using coal power. “We need new generation power for electric vehicles in the coming years,” said Yelland.
The European Union’s (EU) new mandate — published on 15 July 2021, stated that for all new vehicle sales for 2030 onwards, no one is allowed to buy petrol cars in the EU anymore. And nine years goes by fast, confirmed Redelinghuys.
Redelinghuys said that the only way for a developing country like South Africa to move to alternative energy is if the same approach Royal Dutch Shell uses is implemented in South Africa, he stated.
“The only way, like Shell is doing in Europe, is slowly converting into a power utility. They’re investing in power generation,” he added.
Due to loadshedding making a turn for the worst, Redelinghuys does not see a local shift to more electric vehicles and charging stations happening in the next five years.
“The rest of the world is moving in that direction. But when SA cannot keep its grid on constantly, how do you want to connect charging stations to the already flawed grid,” said Redelinghuys.
South Africa could be left behind
“Theoretically we have a market for it [electric vehicles], but the energy supply needs to change,” said Redelinghuys.
Since the beginning of 2021 one-in-four new car sales in Europe are plug-in electric vehicles, stated Motsamai Mollo, a vehicle development engineer at Ford motor company South Africa.
“Smaller car manufacturers are starting to produce electric vehicles. All passenger vehicle manufacturing companies are currently working on electric vehicle models,” stated Mollo.
A potential market for electric vehicles
So far there are 80 electric charging stations across South Africa, according to electromaps. Some electric charging stations can be found in Caledon, Sandton, and Cape Town CBD.
South Africa has the resources to produce alternative energy, according to Chris Yelland, independent energy analyst, and managing director at EE Business Intelligence. AUDIO: Heléne Leonard
“Oil producers will become alternative energy producers,” says Redelinghuys. “And prices will be adjusted.”
South Africa is also endowed with wind and solar photovoltaic technology and there is abundant and available land in South Africa for this purpose, stated Yelland.
“There is every opportunity for South Africa to generate the necessary green energy and the charging of electric vehicles from renewable energy sources,” he added.