Government will prioritise gas-to-power and battery energy storage systems (BESS) to strengthen reliable electricity supply.
This is according to Electricity and Energy Minister, Dr Kgosientsho Ramokgopa, who announced the new Section 34 Determination for additional generation capacity over the 2026-2037 planning horizon at a media briefing on Wednesday.
“This determination advances the seventh administration’s inclusive growth and employment and reduction of the cost-of-living impact on our people.
“This intervention must be read together with the three apex priorities of the seventh administration. The first one is about growing the South African economy and creating jobs. The second is to address the cost of living and also address poverty.
“I’m confident that this presents a new way, a blueprint of how we are addressing an immediate problem…technology gives us an opportunity to resolve that,” Ramokgopa explained.
He added that the prioritisation will respond to the electricity system’s “immediate requirements for storage, flexibility and dispatchable supply”.
“We are sitting with a new problem that…on the back of the clinical implementation of the Generation Recovery Plan by Eskom, we are sitting with surplus electricity on the system. That itself presents a major risk to the system.
“This intervention is to ensure that we avert the possibility of market failure…undermining our future ambition to procure new generation capacity from the private sector because financing will be very expensive as a result of this curtailment arrangement.
“We are going to increase the risk of these projects failing, so it’s important that we are able to make an intervention in relation to how we deal with curtailment. It also undermines the South African economy to benefit from this excess generation capacity, so we want to provide for storage,” the Minister said.
In a statement, the department said BESS is central to mitigating curtailment.
“Batteries can charge from electricity that would otherwise be curtailed and discharge during evening peaks or other periods of need. This will help convert surplus generation into usable electricity, while providing rapid balancing and grid support.
“Storage must be located and operated where it can access surplus electricity and discharge without reproducing the network constraint. Procurement will therefore be aligned with the charging and discharge requirements of the System Operator, supported by enforceable availability and performance obligations,” the statement explained.
The department noted that the country “already has a foundation for expanding this programme”.
By June last year, all five projects in the first battery storage bid window had “reached commercial close and entered construction, attracting R15.4 billion in investment”.
“The proposed 4,600 MW allocation will substantially expand the procurement of storage services,” the statement read.
Regarding gas-to-power, the proposed 5000MW allocation will complement storage by “providing dispatchable electricity when renewable output falls, or demand rises”.
“Gas generation does not absorb surplus electricity. Its contribution depends on flexible operation that allows renewable generation to serve demand during high-output periods and supplies the remaining requirement when that output declines.
“Procurement design will address start-up times, ramping capability and minimum operating levels. Fuel availability, delivered gas prices, supporting port and pipeline infrastructure, grid connections and commissioning schedules will be assessed together. Affordability must be evaluated against the expected operating profile of the plants.
Both storage and gas procurement will form part of government’s programme of transmission expansion, new industrial electricity demand and regional electricity trade.
“BESS can mitigate curtailment, but sustained progress also requires delivery of the grid infrastructure needed to move electricity to consumers.
“The procurement programme will support local manufacturing, engineering, construction, skills development and broader ownership of energy infrastructure through measurable commitments,” the statement read. – SAnews.gov.za
