Electric vehicles (EVs) present economic and sustainability benefits for South Africa by offsetting fossil fuel imports and improving air quality, while providing potential storage and grid balancing benefits as the use of renewable energy grows, says EV and smart mobility company Generation.e CEO Ben Pullen.

The range of modern EVs is typically 250 km to 550 km, which is suitable for most commuters’ daily needs. Maintenance and operating costs are typically lower than those of internal combustion engine vehicles and, while the retail costs of EVs are typically higher than those using internal combustion engines, many are showing strong resale values.

Buying decisions are also strongly related to total cost of ownership, which tends to be lower for EVs over five years of use, he adds.

Various delivery fleets and urban supply chains can use light delivery EVs being developed by, among others, Iveco, Scania and Mercedes Benz. This is because such companies know the typical distances covered by their vehicles, and can often deploy centralised recharging infrastructure at depots and distribution centres.

Similar benefits can be achieved at ports and airports, where vehicles fulfil well-defined, routine roles and operate in confined areas and ranges.

“There are no barriers currently to deploying EVs in suitable and well-defined use cases, such as medium-range delivery and operational vehicles. The returns on investment for these use cases can be attractive and help to insulate these operations from fuel cost variations This will also immediately contribute to higher air quality in the areas where they operate.”

Recharging infrastructure is being deployed in commercial and retail parking spaces, as well as at fuel station forecourts, as the EV market grows.

New Grid

“There is an innovation that could revolutionise the way that we use vehicles, known as ‘Vehicle to Grid’ or ‘V2G’ technology. V2G refers to the car and the grid being connected and allows for a bidirectional flow of power.

“This means that power will flow to the car during charging, but, when the grid needs electricity, it can take some from the car. With sufficient EVs – all with battery sizes of 40 kW or larger – you have a large storage system that can help to balance grid supply and demand,” explains Pullen.

The innovations in EVs and power create both a challenge and an opportunity for the grid. By embracing renewable energy, EVs and the use of battery storage, South Africa can drive down its carbon emissions and air pollution, he says.

However, the current tax structure does not allow for these benefits to be realised.

South Africa is energy rich in renewable sources, but does not exploit this to improve mobility and economic growth. Energy supply and cost are strongly linked to economic growth and mobility is important to enable people to seize economic opportunities, he adds.

Pullen highlights that Chinese State-owned automotive manufacturer BAIC, which is also the largest EV manufacturer in China, has opened a facility in the Coega Industrial Development Zone, near Port Elizabeth. The facility manufactures only internal combustion engine vehicles, but the company could manufacture its range of EVs locally.

However, EVs are currently subjected to higher import taxes than internal combustion engine vehicles, and this increases the costs and restricts their adoption in the local market, he says.

“We want to see a reduction to a fair tax level. Further, the local automotive manufacturing industry is already monitoring growing EV use worldwide and knows that it must pivot in time to meet changing automotive demands.”

South Africa has many of the materials and structures in place to build EVs, but this will require new and different skills in the industry, as well as mandating that these skills be taught at tertiary education institutions.

Although South Africa is currently a heavy global polluter, its ready access to various energy sources, including renewable sources, means that it can be one of the most sustainable countries in the world, but it must prepare itself to tap into the opportunities presented by new and smart mobility, concludes Pullen.