Zero Carbon channels $513 million into EV charging

November 14, 2024

From the newsletter

A South African charging infrastructure developer has signed a partnership with the government to provide off-grid charging solutions in the province of KwaZulu-Natal. The Zero Carbon Charge deal allocates $513 million for EV infrastructure development over the next 10 years. It will include at least 31 new charging sites across the province.

  • The network will include 17 sites for passenger and light commercial vehicles and 14 dedicated truck battery-swapping stations.

  • Each site will be equipped with solar panels, battery storage systems and rest stops, with the first site expected to be operational by April 2026.

More details

  • Zero Carbon has even bigger plans to develop 120 off-grid charging stations across South Africa. The charging sites will be located at 150 km intervals across the country.

  • Last month, it launched its first off-grid charging station at Wolmaransstad in the North West province. The deal in KwaZulu-Natal marks the start of its large-scale construction of EV charging stations.

  • The market for EVs in South Africa is growing, and the energy demand for EV charging is expected to reach 88.49 TWh if all vehicles in South Africa were electric.

  • However, South Africa's grid mainly relies on coal and has experienced load shedding in the past. Although there has been no load shedding since March 2024, concerns remain about the grid's capacity to handle increased demand from EVs.

  • Charging EVs on the coal-powered grid is more polluting. It is estimated to result in 5.8 tonnes of CO2 emissions annually per vehicle, compared to 4.4 tonnes from petrol cars.  

  • Zero Carbon Charge is betting on off-grid solar charging stations to reduce grid reliance and provide a cheaper alternative.

  • At the same time, grid prices continue to increase. For example, in the commercial sector, prices for commercial users have increased by over 150% in the last 10 years.

  • Eskom, South Africa's utility provider, keeps pushing for annual electricity price increases. It has applied for a 36.1% electricity price hike from April 2025, an 11.8% price increase in 2026 and a 9.1% increase in 2027.

  • This means off-grid charging companies stand to compete better. Solar panel prices keep declining, and this offers more hope for lower charge costs.

  • Even then, several competing companies still rely on the grid. Gridcars and Rubicon are examples. Rubicon grew its EV charging revenue 10 times in two years, showing there is still profitability.

  • But EV customers need a cheaper and more environmentally friendly alternative. Off-grid solar is a viable option, and South Africa has an abundance of solar energy. It receives more than 2,500 hours of sunshine annually, with the highest levels of solar radiation in the western part of the country.

  • Zero Carbon Charge's network of EV charging stations could potentially reduce carbon emissions by 25 million tons over the next 20 years, with each EV charged using their system saving an average of 5.8 tons of CO2 equivalent annually.

  • Also, the project is expected to create thousands of jobs and contribute to skills development in the green energy sector.

Our take

  • Most African utility providers lack the capacity to support mass EV charging. If the transition to EVs happens quickly, most won't be able to meet the demand in the short term.

  • Off-grid charging stations could help to protect grids by reducing demand. However, building solar plants and charging stations is a significant feat that few companies can undertake. It requires extensive land for solar panels and substantial capital investment. Tapping farmers to provide land for leasing to set up solar plants could help.

  • There is money to be made in EV charging, and Rubicon proved this by growing its revenue from EV charging by 10 times in two years. Zero Carbon Charge being the pioneer in off-grid charging will set the blueprint for other African players.