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Thursday / 13 February 2025
HomeNewsEskom signs first-of-its-kind agreement with South African bus operator

Eskom signs first-of-its-kind agreement with South African bus operator

Golden Arrow Bus Services (GABS) has signed a Memorandum of Co-operation (MOC) with power utility Eskom, setting out the terms for ongoing constructive engagement relating broadly to the introduction of electric vehicles into the South African market.

More specifically, it focuses on GABS’s planned launch of electric buses into the public transport sector.

As per Francois Meyer, GABS CEO, the successful rollout of electric buses will require a number of partnerships across the value chain.

“Introducing electric buses at scale requires partnerships between large electricity generators, distributors, and users – this MOC will enable us to work together to provide a public bus service which is safe, reliable, and cost effective,” he said.

In addition to electricity generated directly by Eskom, GABS will be looking to procure renewable electricity from independent power producers. In this regard, Eskom will play a critical role as the distributor for potential future wheeling agreements.

The MOC also covers the development of electric-vehicle infrastructure.

“Golden Arrow has taken the bold step to replace 10% of its fleet with electric vehicles by the end of 2025, and the data which we are generating is the first of its kind in South Africa,” said Meyer.

“Sharing this data will empower others to make informed decisions and help determine the future of electric mobility within the public transport space. Ultimately the MOC will not only be beneficial to Eskom and Golden Arrow but to the South African public.”

Public transport is going green

Following a successful trial period that started in 2021, GABS recently ordered 120 electric buses from Chinese manufacturer BYD as part of its goal of establishing the first electric public transport fleet in South Africa.

The new 12.5m-long electric buses are equipped with lithium-iron-phosphate batteries and feature BYD’s proprietary six-in-one controller, which integrates six critical components into one single compact module for enhanced efficiency and reliability.

The company notes that on top of contributing to a greener environment, the eco-friendly people haulers will provide passengers with a quieter and more comfortable travel experience.

Additionally, GABS has determined that it could save north of R657,000 per year on diesel by switching to electric, as well as achieve a 50% savings in spare parts and 80% savings in oils and lubricants.

“As a company with such a rich history, we are proud to be the first to bring electric buses to South Africa’s public transport space,” said Meyer.

“This partnership with BYD underscores our commitment to innovation and sustainability.”

The delivery of the electric buses is scheduled to commence in December 2024, with plans for full delivery by the end of 2025.

Golden Arrow previously said it intends to introduce 60 electric buses to its fleet every year starting in 2024 until its entire portfolio of 1,100 diesel-powered buses is converted.

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