South Africa bets on battery storage and gas power to boost electricity

South Africa is prioritizing battery storage and gas-fired power as it reshapes its electricity system, with plans to procure 9.6 gigawatts of capacity in an initial phase. 

The move is designed to strengthen grid reliability while the country adds renewable generation and gradually reduces its heavy dependence on coal.

Power plan shifts focus

South Africa plans to add more than 105 gigawatts of new generation capacity by 2039, according to its Integrated Resource Plan. Renewable energy is expected to account for more than half of the additions as the government seeks to diversify the power mix and improve long-term electricity security.

The initial procurement will include 4.6 gigawatts of battery storage and 5 gigawatts of gas-to-power capacity, Electricity and Energy Minister Kgosientsho Ramokgopa said in a statement. Wind and solar projects will be allocated at a later stage, adding more variable renewable capacity to the country’s evolving power system.

Gas takes a larger role

South Africa is also evaluating proposals from four shortlisted consortia competing to supply 2 gigawatts of gas-to-power capacity. The projects form part of a broader strategy to introduce more flexible generation that can support the grid when renewable output fluctuates or demand rises.

The Integrated Resource Plan published last year provides for 16 gigawatts of gas capacity in South Africa’s energy mix by 2039. The government’s latest procurement plans therefore represent an early step toward a substantially larger gas role, even as renewable energy takes an increasing share of future generation.

Private power gains ground

Coal remains South Africa’s dominant source of electricity, but the structure of the power market is changing. The Electricity Regulation Amendment Act allows private companies to compete with Eskom in electricity generation, opening greater scope for independent producers to invest in new capacity.

A state-owned, independent Transmission System Operator is responsible for managing grid access for public and private generators. The arrangement is intended to create a more competitive electricity market while helping accommodate new renewable, gas and battery projects as South Africa expands and modernizes its power network.