South Africa Fast-Tracks 9.6GW Battery Storage and Gas-to-Power Plan to Strengthen Electricity Grid

 

South Africa is moving ahead with a major expansion of battery storage and gas-fired electricity generation as the government seeks to make the national power system more flexible and reliable.

Electricity and Energy Minister Kgosientsho Ramokgopa announced on Wednesday that 9.6GW of new capacity will be prioritised under a new ministerial determination, comprising 4.6GW of battery energy storage systems and 5GW of gas-to-power capacity. 

The programme forms part of the country's long-term electricity planning and comes as South Africa faces an unusual challenge: periods in which the power system has more available electricity than the grid can efficiently absorb.

Why South Africa wants massive batteries

Battery storage could play an increasingly important role in managing this surplus electricity.

When electricity supply exceeds demand, batteries can store some of the excess power instead of allowing it to go unused. The stored electricity can then be released later, particularly during evening peak periods when demand increases.

Ramokgopa said curtailment — when generators are instructed to reduce output because the system cannot accommodate all available electricity — has become a growing concern.

South Africa's electricity system has recently experienced an average surplus exceeding 4GW, largely during daytime periods, according to information presented alongside the announcement. 

The new 4.6GW battery allocation represents a major expansion of South Africa's energy-storage programme.

Previous battery procurement has already resulted in 1,744MW of capacity being procured. Five projects from the first battery-storage bidding round, representing 513MW, have moved into construction and attracted more than R15 billion in combined investment. 

Gas-to-power also part of the strategy

Government is also prioritising another 5GW of gas-to-power capacity.

Unlike solar and wind generation, gas-fired plants can provide electricity when required, giving system operators another source of dispatchable power when renewable generation falls or electricity demand rises.

However, Ramokgopa acknowledged risks associated with gas, including international fuel prices, currency movements and the infrastructure needed to transport and supply the fuel. 

The procurement programme is expected to consider fuel availability, gas prices, port and pipeline infrastructure, grid connections and project commissioning schedules.

Billions in potential investment

The battery programme alone could generate substantial investment.

Ramokgopa indicated that the 4.6GW allocation could attract investment of more than R90 billion, while government also intends to introduce stronger localisation requirements than those applied in earlier procurement rounds. 

This could create opportunities for South African manufacturing, construction and skills development as the country expands its electricity infrastructure.

The procurement processes will be facilitated by the Independent Power Producer Office and will be open to market participants, including Eskom. 

More renewable projects are coming

The latest determination focuses on battery storage and gas-to-power, but it does not mean South Africa is abandoning renewable energy.

Ramokgopa said another determination is expected to cover additional wind and solar capacity, renewable-storage hybrid projects and pumped-storage projects. Government is also developing a State-led Power Parks Programme aimed at reducing barriers for new energy developers. 

The latest move signals a shift in South Africa's electricity challenge: after years dominated by concerns over insufficient generation and load shedding, policymakers are increasingly focusing on how to store, move and manage electricity more efficiently across the grid.