While the potential of stationary energy storage to address the existing power system challenges, are high in South Africa, the current uptake of the technology is limited to customer-sited, behind-the-meter applications (largely for back up services).
This enables storage to absorb excess capacity on the system when supply exceeds demand. In South Africa’s constrained power system, energy storage can provide backup capacity that can be called on to reduce the extent of loadshedding. As noted earlier, energy storage offers accurate and swift / responsive dispatchability to the system.
In the longer term, however, at higher levels of variable generation, flexibility requirements will significantly increase demanding interventions to ensure secure and cost-efficient operation of the South African power system. Energy storage was specifically noted to be highly suitable for this purpose.
South Africa’s energy storage development and manufacturing objectives and roadmap. Anticipated changes in the generation and consumption profiles of the country with consideration of the most recent IRP (Intervention 1.2 under Policy levers) and any subsequent techno-economic planning and modelling.
The report noted the main barriers in the region to be lack of regulation supporting the energy storage market, access to affordable financing, political and economic stability, and underdeveloped or aging grid infrastructure. Of particular interest in South Africa is the volume of residential energy storage systems being imported.
With regard to funding, there are no known low-cost financing or concessional terms offered specifically for energy storage by South African development finance institutions (IDC or DBSA) or any commercial banks. energy storage would be considered for financing as part of a RE investment or would be considered on a case-by-case basis.
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