Minister outlines plan to strengthen ‘reliable’ electricity

South Africa's electricity and energy minister, Dr Kgosientsho Ramokgopa, has outlined a plan to bolster the nation's energy security. The strategy centers on boosting battery energy storage systems (BESS) and gas-to-power technologies. These measures aim to bolster the country's commitment to integrating more renewable energy sources into the national grid, which has long faced pressure.

In the 2026-2037 period, the Department of Electricity and Energy has released a blueprint that addresses the electricity system's requirements for storage, flexibility, and a reliable supply of power. Ramokgopa emphasized that this plan responds to a pressing issue: the surplus electricity on the system, a result of the implementation of the Generation Recovery Plan by Eskom, poses a significant risk to the system.

Without intervention, this surplus could lead to market failure, making financing for private sector-generated projects prohibitively expensive due to curtailment arrangements.

To mitigate these risks, Ramokgopa's department asserts that increasing the risk of project failures is unacceptable, as it would undermine the South African economy's ability to benefit from excess generation capacity. BESS is seen as central to curbing curtailment. Batteries can capture electricity that would otherwise be lost and release it during peak evening hours or other periods of need, thereby converting surplus generation into usable electricity while offering rapid balancing and grid support.

The department highlighted that South Africa is well-positioned to expand this program. Since June of last year, all five projects in the first battery storage bid window have reached commercial closure, commencing construction, and attracting R15.4 billion in investment. Both storage and gas procurement will be integral to the government's transmission expansion, new industrial electricity demand, and regional electricity trade initiatives.