The South African government plans to prioritise the procurement of 4,600MW of battery energy storage systems and 5,000MW of gas-to-power under its integrated resource plan. Electricity and Energy Minister Kgosientsho Ramokgopa announced this during a media briefing, stating that the combined allocation of 9,600MW aims to address the electricity system's immediate requirements for storage, flexibility, and dispatchable supply.
The procurement plans are a response to the increasing curtailment of electricity, which occurs when available generation cannot be accommodated due to network constraints or operating conditions. This results in electricity that could otherwise serve consumers being left unused, while infrastructure and contractual costs remain. The minister emphasised that the implementation of the Integrated Resource Plan 2025 must deliver electricity that the system can absorb and supply when consumers need it.
To support the changing electricity flows and connect new wind, solar, battery storage, and gas generation projects to the national grid, South Africa plans to build 14,000km of new high-voltage transmission lines over the next decade. This project is estimated to cost R440bn. The Integrated Resource Plan 2025 seeks to accelerate the diversification of the country's energy mix by expanding renewables, gas, and nuclear capacity while managing the gradual decommissioning of coal plants.
The new battery energy storage and gas-to-power procurement plans aim to minimise curtailment and avoid undermining the future purchasing of new generation capacity from the private sector. Minister Ramokgopa highlighted that battery energy storage systems are central to efforts to improve the use of available electricity. These systems will ensure that surplus output is not wasted but rather converted into electricity for later use.
The proposed 5,000MW gas-to-power allocation will complement storage by providing dispatchable electricity when renewable output falls or demand rises. The minister stated that gas is expected to receive significant attention in this determination, as it provides a flexible and dispatchable energy source. The Independent Power Producer office is currently evaluating bids for the country's first gas-to-power procurement process, which closed in May.
The gas industry is awaiting an announcement of preferred bidders, which market participants say is needed to provide demand certainty for planned liquefied natural gas import and gas supply projects. Minister Ramokgopa emphasised that the approach advances the seventh administration's priorities by improving the use of available electricity, supporting dependable supply for industrial production and employment, and addressing avoidable costs that place pressure on electricity affordability.
The minister concluded that the immediate priority is to procure storage and flexible generation, while expanding the grid, securing new electricity off-takers, and strengthening regional trade. The implementation of these plans is expected to improve the overall efficiency and reliability of South Africa's electricity system.
Key points
- The South African government plans to prioritise the procurement of 9,600MW in gas power and battery energy storage.
- The procurement plans aim to address the immediate requirements for storage, flexibility, and dispatchable supply.
- The plans are expected to minimise curtailment and support the diversification of the country's energy mix.
