Pretoria:The government has announced a strategic focus on gas-to-power and battery energy storage systems (BESS) to ensure a reliable electricity supply. This initiative was disclosed by Electricity and Energy Minister, Dr. Kgosientsho Ramokgopa, during a media briefing where he introduced the new Section 34 Determination for expanding generation capacity from 2026 to 2037.
According to South African Government News Agency, Dr. Ramokgopa stated that this determination is a key component of the seventh administration's agenda to drive inclusive growth, create jobs, and reduce living costs. He emphasized that the prioritization of gas and battery storage would address immediate needs for storage, flexibility, and dispatchable power supply within the electricity system.
The minister highlighted a current challenge of surplus electricity due to the effective implementation of the Generation Recovery Plan by Eskom, which poses a risk to the system. The intervention aims to prevent market failure, which could hinder future procurement of new generation capacity from the private sector due to high financing costs associated with curtailment.
In a statement, the department emphasized the importance of BESS in mitigating curtailment by storing excess electricity for use during peak demand times, thus converting surplus power into usable electricity and supporting grid stability. The procurement process will align with the System Operator's requirements, ensuring storage is strategically located to maximize its effectiveness.
The department also noted progress in battery storage projects, with five projects reaching commercial close and starting construction by June last year, attracting significant investment. The proposed allocation of 4,600 MW aims to expand storage service procurement significantly.
On the gas-to-power front, a proposed 5,000 MW allocation will complement BESS by providing electricity when renewable energy output is low or demand increases. The procurement strategy will consider various factors, including start-up times, ramping capabilities, and fuel availability, to ensure cost-effectiveness and operational efficiency.
Both storage and gas initiatives are integral to the government's broader transmission expansion program, which includes new industrial electricity demand and regional trade. Additionally, the procurement program will support local industries through commitments to manufacturing, engineering, construction, skills development, and infrastructure ownership.