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SA shaky on supporting electric vehicle rollout

Lack of infrastructure development chasing manufacturers away.

The smooth and silent experience that comes with driving an electric vehicle (EV) is quite contrary to the progress South Africa has made in effectively implementing appropriate infrastructure to support vehicle sales.

Two of the country’s competing EV manufacturers, BMW and Nissan, signed a memorandum of agreement in 2014, which saw them join forces to build a national grid of EV and Plug-in Hybrid Electric Vehicle (PHEV) charging stations for use by both Nissan and BMW vehicles. The deal, however, never came to the fore. 

According to BMWi product manager Alan Boyd, there are just over 100 BMWi charge points, the majority of which can be found in mega city locations. This has resulted in positive sales of the BMWi since the arrival of the i3 and i8 in 2015. Collectively, around 420 BMWi vehicles are being driven on South African roads, with the BMW i8 leading sales.

 

Nissan, with only seven charging points available at selected dealerships in Gauteng, has suffered. To date 90 Nissan Leafs, which were brought to SA in 2013, have been sold. 

According to the managing director for Nissan Africa, Mike Whitfield, the Leaf, since its launch, has reached the end of its lifecycle resulting in a sales decline phase, in line with industry expectations. At present only one Leaf is left for purchase at the Hatfield dealership in Pretoria.

Whitfield said EVs require both charging infrastructure and support from the government to be truly successful.

“In markets where EVs have experienced rapid adoption, it was incentivised by the local and or national government until buying patterns and a charging infrastructure were established. In South Africa, discussions are continuing between the industry players and government to agree on the EV incentive environment,” said Whitfield in an emailed response to questions.

Whitfield said he expects slow and steady growth of Nissan EVs as technologies become more accessible.

South Africa’s central power supplier, Eskom, told Moneyweb in an emailed response to questions that it is currently investigating its role in developing the eMobility market for the EV.

Eskom said it is exploring a multitude of business models and entering into partnerships with eMobility stakeholders and government to work on cost-efficient and beneficial models for EVs in South Africa. 

Eskom’s investigations include infrastructure readiness for uptake of the EV, charging infrastructure designs and deployment, ways to improve on optimal charging periods and reduce the increased peak demand periods, and the macro-economic impact studies, and just the overall readiness and upgrading of the EV.  

“Timelines for full scale entry into the eMobility market will be dependent on the approval of the finalised business case, government support and subsequent governance and funding approvals,” Eskom’s media desk said.

One of the barriers Eskom lists in its response is that the import tax of about 40% renders EVs a luxury mode of transportation and unaffordable to the average middle or lower income earner.

The current cost of electric vehicles in South Africa range between R400 000 and R600 000.

The BMWi PHEV sits at R606 800, and the Nissan Leaf retails for around R474 900. While this may seem expensive, manufacturers say that maintenance of the car is far more affordable compared to that of a diesel or petrol vehicle.

 

Despite challenges, Eskom anticipates the rollout of some charging infrastructure within the next 18 months on a demonstration basis. 

Charging points for both cars differ, but options remain the same. The BMWi can be charged from an AC, public charger at no cost, which would take about three hours to charge from 0-80% and a DC fast charger that takes about 30 minutes.

For personal convenience, a BMW wallbox can be installed in the home for about R25 000 or an AC occasional cable can be plugged into a domestic socket, which takes 8 hours until fully charged.

According to Boyd, an EV user would be spending less than R40 per charge, and service for the car takes place after 24 months.

For Leaf drivers, two charging systems are available, a quick charging system, at a charging point at selected dealerships, which works off 340 volts and fully charges a battery in 30 minutes or the recommended 220 volt portable or slow charger, which takes seven hours. Installation cost of the home charger is R45 000 and the portable charger is R12 000. A Leaf driver would be spending around R16.80 per charge and a payable car service of R1 500 after 15 000km.

While the electric car is cost efficient (in the long term), boasts smart features and emulates the future, it appears as if South Africa is not quite ready.

 

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1. In Europe there are lots of public charging points which are free at the moment, but I do not see it lasting too long if the number of electric cars are increasing. Why would a taxpayer subsidise rich people?
2. The other problem is the tax on petrol and diesel. Currently the fuel tax brings in billions in every country, which, in theory, is used for road building and maintenance. What happens when the percentage of electric cars reach 10-20% or higher? Where will the governments get the money to replace the missing fuel tax?
3. The electricity infrastructure is not built for large number of electric cars getting a fast charge. Who will pay for the upgrade and where will the extra electricity required coming from? Coal fired power stations?

To add to this SA and Africa should consider going the fuel cell route, reason for this is:
1. The fuel distribution system already exists. Changing the cargo on a fuel truck from diesel/petrol to hydrogen will be a no brainer. All that is required is a special cargo hold. The truck remains the same.
2. Fuel taxes can remain as is. Unlike batteries one can easily control and tax the purchase of hydrogen at a garage. No way one can tax someone charging his car at home.
3. Our electricity grid will be severely strained trying to charge hundreds of thousands of cars daily. What happens when there is load shedding? Your car will be stranded at the garage. At least with hydrogen the pumps can still be driven with generators.
4. Fuel cell cars can me refuelled under 5 min unlike batteries (about 30min up to a few hours at home).

What the average consumer needs to look at is the total cost of ownership and not just the purchase price of the car.

If you look at the petrol savings you may well end up spending less on your total car ownership costs than a standard petrol car.

I own an electric car and my savings on not using petrol covers the cost of the car on a monthly basis.

What you forgot to mention is that in 5-6 years you will need to replace your battery. A new battery costs 25% the value of a new car.

BMW has a 8 year warranty on batteries so this is not a concern.

This has not been shown to be an issue in studies and although the technology has not been commercially available for that long the testing would have mirrored this type of usage and time span.

how can anyone in their right mind think that this can work in a de-evolving third world country???

Lets not forget that Lithium mining is very bad for the environment as it produces toxic waste and requires a lot of water.

for electric cars to succeed a well run state and electrical grid is
vital. all these 1st world ideas are humbug when those in govt are brain dead- it is to risky

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