GreenCape, in partnership with the City of Cape Town (CCT), has published a new case study which demonstrates the business case for the procurement and roll out of electric passenger vehicles for municipal fleets.
The case study It reflects on cost saving insights from an electric vehicle (EV) pilot project in the CCT that has also shown greenhouse gas (GHG) emission savings. It also highlights the importance of selecting a replacement EV that is aligned with the purpose of the fleet vehicle.
The following key insights are distilled form the case study:
- Reduction in GHG emissions: EVs used in municipal fleets can reduce greenhouse gas (GHG) emissions, improve air quality in cities and save on fuel costs.
- Charging network: It is important that EVs procured by municipalities are fit for purpose and that a suitable charging network is developed to support operational requirements.
- Decarbonisation lever: There is a business case for procuring electric passenger vehicles for municipal fleets, which can be used as a decarbonisation lever in municipalities, if charged with renewable energy.
- Operational costs: The CCT EV pilot project showed that the purchase price plus operational costs of electric passenger vehicles are more affordable than its internal combustion engine (ICE) vehicle equivalent.
The findings of the CCT EV pilot project show that there is a business case for the use of EVs by municipal fleets, if the EV alternative is fit for purpose and within price parity of existing ICE vehicles. Recent market shifts by OEMs in South Africa suggest that further affordable EV models will be introduced into the South African market between 2023 and 2026 (when EVs are expected to officially reach price parity with ICE vehicles globally). An example of this is the GWM Ora electric hatchback which is set to be released in Q3 of 2023 in the South African market at a price of R716 900.00. This will be the cheapest EV in South Africa with an advertised battery range of 400 km and when charged using an 80kW DC plug, fills up from 10% to 80% in 41 minutes.