The costs and capabilities of grid-located batteries have improved dramatically in recent years and could play an import role in South Africa's electricity system. This report examines the challenges facing grid batteries in South Africa and how these can be overcome.
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- IISD, 2024
Table of Contents
- 1.0 Introduction 13
- 1.1 International Experience 13
- 1.2 South African Context 16
- 2.0 Maximizing the Local Benefits of Grid Batteries 18
- 2.1 An Optimal National Rollout Strategy for Grid Batteries 18
- 2.2 Technology Choice and Value Chain Development 21
- 3.0 Minimizing Human Rights Violations and Environmental and Safety Risks Associated With Grid Batteries 26
- 3.1 Harmful Raw Material Extraction and Processing 26
- 3.2 Overheating and Fire 29
- 4.0 Solving the Challenges of Grid Battery Deployment 30
- 4.1 Insufficient Understanding of Grid Batteries 30
- 4.2 Technical Challenges 30
- 4.3 Economic Challenges 32
- 4.4 Electricity Sector Framework Challenges 42
- 5.0 Priority Actions to Support Strategic Objectives to Enable Grid Battery Storage 52
- Objective 1: Improve the basis for planning and decision making 52
- Objective 2: Facilitate access to multiple revenue streams 54
- Objective 3: Support immediate local value chain opportunities 54
- References 56
- Appendix A. Battery Storage Type Based on Location Within System 67
- Appendix B. South Africa-Specific Energy Storage Studies 68
- Appendix C. Grid Battery Capacity Additions in Power System Models 70
- Appendix D. Battery Technology Choices for South Africa 73
- Appendix E. National Government Plans 75
- Appendix F. Laws and Regulations 76
- Figure 1. Spatial allocation of generation and storage in 2032 as per TDP 2022 20
- Figure 2. Basic value assessment of a grid battery 34
- Figure 3. Example of the installed capital cost breakdown for a 60 MW LIB of 4-hour duration 35
- Figure 4. Factors influencing charging and discharging tariffs for a grid battery 37
- Figure 5. Eskom average tariff increases from financial years 2015 to 2024 38
- Figure 6. Battery capacity in IRP 2019, IRP 2023, and TDP 2022 43
- Figure 7. Actions to improve the basis for grid battery planning and decision making 53
- Figure 8. Actions to enable revenue stacking 54
- Figure 9. Actions to support immediate local value chain opportunities 55
- Figure A1. Energy storage described by location within the electricity system 67
- Table ES1. Selected suggestions to address challenges of grid battery deployment 7
- Table 1. A comparison of grid battery deployment features in different regions 14
- Table 2. Summary of opportunities for South African value chain development 23
- Table 3. Estimated job creation in South Africa to 2030 for battery value chain scenarios 25
- Table 4. Technical challenges and possible solutions for grid battery deployment in South Africa 31
- Table B1. Studies on energy storage in South Africa 68
- Table C1. New battery storage capacity to 2030 in published power system modelling outputs 71
- Table E1. Varying grid battery capacity allocations in national government plans 75
- Table F1. A selection of relevant laws and regulations for energy storage 76
- Box 1. Support for rapid grid battery deployment in South Australia 15
- Box 2. Steps toward battery reuse and recycling in South Africa 28
- Box 3. Risk: Increases in raw material prices 36
