Zero Carbon Charge calls on President Ramaphosa to announce in his Opening of Parliament Address on Thursday that the new Government of National Unity (GNU) will prioritise the transition to electric vehicles (EVs), and set out measures to do this.

The Minister of Electricity and Energy’s recent announcement that he plans to be “ultra-aggressive” on the rollout of renewable energy to ensure it becomes an exponential share of the energy mix is encouraging. It is perplexing, however, that the government has introduced a  10% import duty on imported solar panels which undermines rather than supports the rollout of carbon-free energy solutions in South Africa.

“We are looking for a clear and unequivocal statement from the President that his government is prioritising the transition to EVs in South Africa, backed up by powerful incentives to make that happen,” said Andries Malherbe, co-founder of Zero Carbon Charge.

“This should include a reversal of the import duty on solar panels. Everybody in the industry knows that we don’t yet have sufficient capacity to manufacture these panels locally. Until we do, the government needs to make it easier and more cost effective to import these materials,” added Malherbe.

A recent report released by the International Energy Agency’s on the Global EV Outlook for 2024, has highlighted how many countries are embracing the transition to EVs. Critically, while China, the United States and Europe continue to lead on new EV sales and registrations, the  IEA report highlights that a number of developing economies are making positive strides when it comes to the increased uptake of EVs. This includes Thailand where, despite overall car sales decreasing from 2022 to 2023, EV registrations quadrupled to 90 000 last year, making up 10% of all car sales. In India, EV sales were up 70% year-on-year and, in Vietnam, 30 000 EVs were registered in 2023 versus 100 in 2021. In Latin America, EV sales hit 90 000 last year with Brazil leading the region registering 50 000 new EVs in 2023 – triple the registrations achieved in 2022.

“If the government wants to realise its goal of achieving net-zero transport by 2050 and avoid being left behind by other developing countries, it needs to announce concrete measures to speed up the country’s transition to EVs”, said Joubert Roux, co-founder of Zero Carbon Charge.

“These measures should include incentives to promote the purchasing of EVs and opening the market to cheaper imported models. All that is required to kick off a migration to a just transition is a six-year tax holiday on the import of electric vehicles. This will make electric vehicles affordable and facilitate an exponential growth in sales. Once we achieve a critical mass in sales, vehicle companies will establish local manufacturing facilities and localise battery manufacturing.” Roux added.

In order to support the development of an EV charging national network that is powered by renewable energy, national government must introduce a policy framework that includes less stringent land use and environmental application processes to establish solar-powered charging stations. Rebates for drivers who charge their vehicles with electricity sourced from renewable energy charging facilities should also be considered.

Zero Carbon Charge is building a network of 120 electric vehicle Solar PV powered charging stations and has started the land use application process for the construction of 120 electric truck off-grid charging stations on major routes across South Africa, which aligns closely with national government’s goal of promoting renewable energy in order to reduce reliance on the national coal-powered grid. Furthermore, the project supports the objectives of the EV White Paper released by the Department of Trade, Industry and Competition in November last year, which noted: “the use of renewable energy-based systems to power charging stations is important for allaying prospective consumers’ concerns related to grid power supply and availing a truly low carbon transition.”

This Zero Carbon Charge network will not only reduce carbon emissions but will also offer major economic opportunities for mostly poor rural areas. This includes creating just over 12 000 job opportunities during the construction phase and 2860 job opportunities once the charging stations are operational. Additionally, Zero Carbon Charge will be compensating landowners through a lease agreement, by providing them with 5% of the annual sales from electricity generated by the EV charging stations built on their land.

Zero Carbon Charge has written to the key Cabinet Ministers in the new GNU including the Ministers of Transport; Trade, Industry and Competition and Energy and Electricity requesting to meet with them to discuss its ground-breaking project and how it can help the creation of efficient charging solutions and localised energy production that will benefit rural communities. It looks forward to continuing working with government to build a net-zero transport network that contributes towards South Africa’s just energy transition.

For more on Zero Carbon Charge, visit www.charge.co.za