Oct 29, 2024 Zero Carbon Charge (CHARGE), Minister Godongwana, Joubert Roux,
MTBPS - Minister Godonwanga must announce incentives for EVs to be powered by green energy
Zero Carbon Charge (CHARGE) calls on Minister Godongwana to announce in his Medium-Term Budget Policy Statement (MTBPS) measures to ensure that a transition to Electric Vehicles (EVs) will result in the reduction of carbon emissions in the country.
This follows President Ramaphosa’s recent announcement that government is considering the introduction of incentives to encourage South Africans to switch to EVs.
“We hope that Minister Godongwana provides more detail on these incentives in his MTBPS, and that these include tax rebates or a tax holiday on EVs so that these vehicles become more affordable. This is the only way we will be able to achieve an exponential growth in EV sales in the country,” said Joubert Roux, Executive Chairman of CHARGE.
“In addition, it is critical that government prioritises the development of an off-grid, renewably charged EV network and introduces incentives that encourage consumers to charge their EVs with green power from these charging stations,” he added.
CHARGE’s own research has revealed that an EV charged from Eskom’s predominantly coal-powered grid indirectly emits 5.8 tonnes of CO2 per year. This is more than a petrol car, which emits 4.4 tonnes per year.
The EV White Paper released by the Department of Trade, Industry and Competition in November 2023 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.”
Zero Carbon Charge is building a network of 120 ultra-fast electric vehicle charging stations that are powered entirely through PV solar energy and battery. It has also started the land use and environmental application process for the first off-grid electric truck charging stations that will be located on the N3 highway. The further rollout of renewably powered electric truck charging stations will happen on a route-by-route basis. This large-scale, national carbon emission reduction project aligns closely with national government’s goal of promoting renewable energy in order to reduce reliance on the coal-powered national grid for EV charging.
The CHARGE network will offer major economic opportunities for rural areas. This includes creating just over 7000 job opportunities during the process of developing these charging stations. Additionally, CHARGE will provide landowners with additional revenue 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.
“However, if government is serious about achieving the rollout of carbon-free charging infrastructure, Minister Godongwana should also announce in Parliament tomorrow that government has decided to scrap the 10% import duty on imported solar panels introduced earlier this year. This import duty is currently undermining the mass development of renewable power projects, including EV charging facilities, due to insufficient local capacity currently to manufacture these products,” Roux added.
“Finally, national government must also introduce a policy framework that includes less stringent land use and environmental application processes to establish solar-powered charging facilities across the country,” Roux concluded.
Minister Godongwana has an opportunity in his MTBPS tomorrow to show that national government is truly serious about speeding up South Africa’s transition to EVs by announcing concrete measures that will help government realise its goal of achieving net-zero transport by 2050. CHARGE remains committed to playing its part in supporting South Africa in meeting its global emissions reduction commitments.
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