Market update · Africa
South Africa Advances Battery Storage Procurement to Enhance Grid Reliability
South Africa is undertaking significant procurement of battery storage and gas-fired power plants as part of its Integrated Resource Plan (IRP) 2025 to improve electricity reliability and manage renewable energy curtailment. The country aims to add 4.6 GW of battery storage and 5 GW of gas-fired capacity initially, supporting a broader target of over 105 GW new generation capacity by 2039, including 25 GW of solar.
SolTraCo market update · · 3 min readBattery Storage and Gas-Fired Power Procurement
South Africa plans to procure 4.6 GW of battery storage alongside 5 GW of gas-fired power plants as the first allocations under the IRP 2025. This procurement addresses immediate system needs for storage, flexibility, and dispatchable supply to strengthen reliable electricity delivery.
Battery storage is critical to mitigating increasing curtailment of renewable energy, while gas-fired plants provide dispatchable power when renewable output is low or demand spikes. Storage systems must be sited to access surplus electricity and discharge without causing network constraints.
Integrated Resource Plan 2025 and Long-Term Goals
The IRP 2025 sets a framework to add more than 105 GW of new generation capacity by 2039, including 25 GW of solar, aiming to reduce coal dependency. The initial determination focuses on storage and gas capacity, with future determinations to include new solar, wind, hybrid projects, and pumped storage.
The plan emphasizes delivering electricity that the system can accommodate reliably and cost-effectively, supporting industrial production, employment, and electricity affordability.
Progress in Battery Storage Project Development
South Africa's first battery storage bid procured five projects totaling 513 MW, all reaching commercial close and entering construction by June 2025. Subsequent bid windows added 615 MW and 616 MW respectively.
Beyond public procurement, large-scale storage projects are advancing through private initiatives, including hybrid projects with significant battery energy storage systems commissioned by TotalEnergies and Scatec, as well as other projects near Johannesburg reaching financial close.
Sources
This update is an original SolTraCo synthesis of the linked industry sources. Reported facts and commercial interpretation are kept separate. It does not contain confidential deal information and is not investment, legal or technical advice.