Months after the Institute of Ethiopian Standards introduced benchmarks for electric vehicle (EV) battery lifespan and capacity, the absence of accompanying standards for charging stations has stalled multimillion-dollar projects and left the industry in limbo. While the safety and performance standards for EVs were hailed in September as a milestone for the sector, their impact has been limited without corresponding implementation measures for critical infrastructure.

A regulatory framework for charging stations remains absent, creating substantial bottlenecks. Ethiopian Electric Power (EEP), for instance, signed a 25 million dollar agreement with Cardinal Industrial Plc a couple of years ago to build 500 charging stations. Yet, the project remains delayed.

“We can’t start without directives or regulations,” said Moges Mekonnen, EEP’s Communication Director.

Those who have built a scaled-up investment have been caught in another developmental project. GreenTech Africa’s 4.5-million-Br charging station near the Sudan Embassy was demolished before it could become operational due to a corridor development.

Established in 2021, GreenTech leaders believe imported, manufactured, and assembled EVs must be suitable for the country’s infrastructural and environmental conditions while having adequate battery capacity of a minimum 200Km for a full charge range.

Fitsum Derresa, project manager at GreenTech, noted that most EV owners charge their vehicles at home, limiting the business potential of expansion. Unless public transportations are transformed to drive demand, he suggested integrating charging points into existing gas stations.

“The high cost of expansion on top of this makes investors hesitant,” he told Fortune.

However, investors like Libya Oil Ethiopia Ltd and TotalEnergies have taken a cautious approach, opting to wait and assess demand. Both companies have installed charging points at the African Union compound and Africa Avenue (Bole Road), respectively, but have refrained from scaling up efforts.

“We’re uncertain of the future,” said Solomon Tesfaye, finance manager of OilLibya.

The lack of a regulatory framework also extends to issues like electricity tariffs and the standardisation of charging equipment. Even though the standard is in the works at the Institute, authorities at the Petroleum & Energy Authority (PEA) have drafted a directive for Electric Vehicle Charging Systems (EVCS) to address these gaps, pending approval.

According to Bekelech Kuma, communication director, the draft directive is expected to establish licensing requirements, standardise imported equipment, and set market-based electricity tariffs. It also proposes strategically placing charging stations at intervals of 50Km to 120Km and requiring each station to have its transformer.

The federal government’s ban on petroleum-powered vehicles last year was intended to reduce foreign currency outflows and align with sustainability goals. While the Institute’s safety standards aspire to ensure EVs are suited to the country’s roadway and weather conditions, the lack of implementation guidelines threatens these economic and environmental objectives.

According to Yilma Mengistu, director of standards development at the Institute, the standard for charging stations is underway along with a 10-year development strategy for the EV sector to guide its growth.

He said the focus on safety and performance is essential as importing automobiles with marked foreign exchange requires careful consideration to avoid increased maintenance costs down the line.