Most EV owners charge their batteries overnight. If we could stimulate EV adoption, Eskom could sell more power at night and earn more revenue
Eskom has R400bn of debt, with every chance the taxpayer will have to foot that bill at some point. It is also short of capacity, as we see with the constant load-shedding.
However, with demand for electricity lowest between midnight and 5am, my radical idea for Eskom to dig itself out of its hole is to encourage purchases of battery-powered electric vehicles (EVs). Most EV owners charge their batteries overnight. If we could stimulate EV adoption Eskom could sell more power at night and earn more revenue.
A Tesla Model 3 consumes about 0.16kWh/km, while most people commute less than 50km a day. So for every 1MW Eskom is currently “dumping” at night it could recharge 125 Model 3s at a cost of less than R20 for the 8kWh it takes to drive 50km.
Furthermore, fast chargers sell electricity for more than you would pay at home, providing a further opportunity for Eskom to sell at a premium.
The government should eliminate all forms of taxes (all duties, VAT and licensing) on all EVs to stimulate their adoption. It can recover those lost taxes on internal combustion engine vehicles if they have to.