South African power utilities embrace e-mobility

From the newsletter 

City Power, a Johannesburg-based electricity utility, has launched an electric vehicle programme focused on deploying an EV fleet and establishing charging infrastructure. In June, City Power received its first batch of EV chargers. The initiative includes plans to install charging stations in public areas and introduce battery-swapping stations. 

• Eskom’s slow EV rollout, just three of the planned 20 vehicles since 2024, reflects a broader pattern of public sector hesitation. Perhaps, City Power can change the narrative for public institution ambitions in South Africa. 

• With EV sales in South Africa up 35% in 2024, the country’s demand for charging stations is clearly accelerating. It’s a signal that infrastructure must keep pace with rising consumer adoption.

More details

• City Power announced the acquisition of electric vehicle charging stations as part of its broader ambition to position Johannesburg as a leader in the green economy, with an official launch expected in the coming weeks, although further details remain undisclosed.

• To improve energy resilience, City Power is equipping its facilities with solar systems to maintain service delivery during load-shedding and unplanned power disruptions.

• The utility is also investing in EV skills development, partnering with universities and technical institutions to train professionals in safety, battery management, and maintenance, while planning the launch of an e-fleet innovation lab and rolling out city-wide EV charging infrastructure at key public and operational sites.

• Despite commanding huge revenues as monopolies, state-owned power utilities across Africa are lagging in EV charging infrastructure deployment. For example, Kenya Power has only planned 45 chargers nationwide. This slow pace opens space for private players to dominate a market that should ideally be public-led for scale and access.

• South Africa’s demand for electric vehicles is accelerating rapidly, yet charging infrastructure is not keeping pace. Still, with just over 500 public chargers, mostly installed by private firms like GridCars and Rubicon, access remains uneven and insufficient.

• Johannesburg is emerging as a leader in urban sustainability, backed by new financial muscle. The African Development Bank’s $139 million loan marks the first direct subnational funding deal in Africa, creating momentum for the city to invest in green infrastructure. This shows that the city can outsource funding to drive its e-mobility agenda.

Our take

• Out of the more than 400 public charging stations in South Africa, GridCars operates around 211 and Rubicon has 105–110, accounting for the bulk of the national network. This highlights the dominant role of private firms in building critical EV infrastructure while public utilities remain largely inactive.

• The limited presence of public charging infrastructure reveals a significant market gap that remains underserved by government entities. This creates a clear investment opportunity for private sector players and international funders eager to tap into South Africa’s accelerating EV adoption.

• Johannesburg demonstrates the potential of local governments to drive e-mobility progress independently of national directives. However, success depends on strict project timelines and execution discipline to avoid common delays that undermine credibility and impact.