PURC incentivises EV charging expansion with new cheaper tariff

Operators of licensed electric vehicle (EV) charging stations across the country can now offer cheaper charging services than residential options starting today.

This follows the gazetting of the second-quarter tariff adjustment by the Public Utilities Regulatory Commission (PURC), which, among other measures, introduced a commercial electric vehicle charging tariff.

Under the new regime, EV users are expected to pay lower rates at designated charging points, where dedicated transformers and higher-voltage systems enable faster, more efficient charging than at home.

The new tariff, which imposes a charge per kilowatt-hour (kWh) of GH¢2.016 (about $0.18) before margins, is aimed at promoting the green energy transition while discouraging home charging due to safety risks associated with low voltage and inadequate infrastructure.

In contrast, many licensed public charging facilities can now fully charge vehicles in about 15 minutes, with costs ranging between GH¢4 and GH¢5 per kilowatt-hour, depending on the provider.

Before the tariffs, the PURC worked closely with the Energy Commission to develop regulations for the EV sub-sector.

The policy is expected to attract private investments into the space and encourage the establishment of more charging stations at malls, fuel outlets and public spaces nationwide.

The Executive Secretary of the PURC, Dr Shafic Suleman, in an exclusive interview with the Daily Graphic in Accra, stated that people who wished to invest in charging outlets must apply with both the Energy Commission and the utilities.

“Those who wish to invest must contact the Electricity Company of Ghana (ECG) to secure access to dedicated charging transformers and also apply to the Energy Commission to obtain the necessary licence to operate under the new commercial tariff regime.

“The commission will continue to review the tariff structure based on feedback from consumers and investors to ensure it remains fair, competitive and supportive of the country’s transition to electric mobility,” he said.

Context

Ghana’s EV industry is emerging rapidly, driven by a robust electricity grid with over 60 per cent hydro and solar power, making it ideal for low-emission vehicles, particularly two- and three-wheelers used in last-mile delivery.

Heightened tensions in the Middle East and rising global oil prices are further driving demand for electric vehicles, as Ghana’s national EV policy targets 70 per cent EV adoption on the roads by 2045.

However, limited charging infrastructure — with only about 50 public charging and battery swap stations, mostly located in Accra — poses significant challenges, forcing many EV users to rely on home charging, which can take up to seven hours.

The EV industry is regulated by the PURC and the Energy Commission, which oversee tariff setting, licensing, infrastructure standards, and overall compliance to ensure safe and sustainable sector growth.

Charging dynamics

Dr Suleman stated that the new tariff was designed to deliberately shift consumer behaviour from home charging to regulated public charging stations, where infrastructure was safer and more efficient.

The PURC Executive Secretary said most residential areas lacked the specialised transformers required for EV charging, and that continued home charging could strain community power systems and reduce voltage supply to neighbouring households.

He explained that the introduction of the commercial tariff also served as a strong market signal to attract private sector participation and accelerate the development of charging infrastructure nationwide.

Dr Suleman said the public charging stations offered significant efficiency advantages over home charging.

While residential charging could take between four and seven hours due to low voltage supply, commercial charging stations could fully charge vehicles in as little as 15 minutes.

Regional comparison

The Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), Benjamin Nsiah, commended the PURC for introducing the commercial EV charging tariff, describing it as “a well-justified measure that provides fairness in pricing and protects the national grid from residential overloading.”

Before the introduction of the tariff, he said, many EV users relied on home charging, often using low-voltage residential transformers not designed for high-demand EVs, which strained community electricity networks and slowed charging times.

However, Mr Nsiah stated that the new rate of GH¢2.016 (about $0.18) per kilowatt-hour remained relatively high compared to what pertained in neighbouring countries.

He said that countries such as Kenya offered off-peak EV charging at $0.06 per kilowatt-hour, while Namibia’s rates ranged from $0.08 to $0.12 per kilowatt-hour, and South Africa charged between $0.14 and $0.22 per kilowatt-hour.

“While PURCs must be commended for setting a structured and dedicated tariff system, the rate is still higher than what is available in other African countries, and this may limit wider adoption in the short term,” Mr Nsiah said.

Infrastructure expansion

Mr Nsiah called for a deliberate attempt to increase the number of public charging stations beyond the current 50, particularly in the middle and northern belts of the country, to ensure equitable access for users outside Accra.

He explained that integrating renewable energy sources, such as standalone solar systems or net-metered solar power, into charging infrastructure would reduce costs and enhance efficiency.

The Manager of Utim8 EV Charge (EV charging station) at East Legon, Saed Raman, stated that it was more efficient to use EVs compared to internal combustion engine (ICE) vehicles.

That, he said, was because EVs converted a higher proportion of energy into actual movement, with minimal losses as heat.

Mr Raman, whose outlet serves between 35 and 40 EVs a day, explained that the problem of slow charging had largely been resolved, as many of the new charging stations now employed faster, more efficient charging solutions.

He added that the cost of charging EVs remained relatively low compared to fuelling ICE vehicles, especially amid rising global oil prices.

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