Average MW scale storage system price per 15MW in South Africa

Why is battery storage important in South Africa?

In South Africa, battery storage is increasingly seen as a key pillar to help provide grid stability and integrate variable renewables given its ageing coal-fired power fleet and grid.

Is back-up power a solution to South Africa's energy crisis?

The current energy crisis in South Africa, coupled with the decreasing cost for energy storage systems, will see the market for back-up power as a replacement for diesel generation and solar PV hybrid increase.

Does South Africa have a battery storage tender programme?

South Africa is aiming to procure utility-scale battery storage with two tender programmes: its Battery Storage IPP Procurement Programme as well as hybrid battery storage and variable renewables projects through its Risk Mitigation IPP Procurement Programme.

Are battery storage solutions sold as a service?

Very few projects have been installed using a power purchase agreement model where the battery storage solutions are sold as a service. An office block with a very high energy demand and roof space for a 100kWp solar PV system is investigating options for energy independence.

Why is the South African government using IPP to allocate battery storage?

In 2022, this led to unprecedented load shedding of more than 8 terawatt-hours (TWh), which was a fourfold increase in unmet demand compared with the previous year. As a result, the South African government is using its Independent Power Producer (IPP) Procurement Programmes to allocate firm capacity, including battery storage.

How big is a solar PV storage market?

If a quarter of new build solar PV systems installed have a storage component coupled to it there could be a potential storage market of roughly 200MWh per annum which can be translated to roughly R2 billion market size in a year. Case studies that demonstrate the business case.