South Africa should look to successful strategies from regions like South Australia and California to accelerate the adoption of grid batteries. According to a new report by the International Institute for Sustainable Development (IISD), integrating these strategies could enhance grid stability and provide the flexibility needed to support variable renewable energy generation.
The report emphasizes that while solutions must be tailored to specific locations, some universally applicable strategies include allowing battery operators to access multiple revenue streams and offering specific financing mechanisms for initial projects. Based on interviews with over 70 experts, the report highlights a general lack of awareness about the benefits of grid batteries, along with fragmented planning processes and financial hurdles, as major barriers to their implementation.
“South Africans are increasingly installing consumer batteries at their premises, but grid batteries—storage systems installed directly on the grid—are a largely overlooked solution to the country’s electricity supply challenges,” state the authors of the paper, titled ‘Watts in Store Part 2’. Lead author Richard Halsey argues that grid batteries can usher in a new era of flexibility, functioning both as standalone power storage units and as complements to renewable energy sources like solar PV.
Moreover, the rising demand for batteries presents an opportunity to stimulate the South African economy and create jobs. This is particularly relevant given South Africa’s rich deposits of critical minerals needed for leading battery technologies, such as lithium-ion and vanadium redox flow batteries. The latter, known for their longer-duration storage capabilities, are expected to play an increasingly significant role in the sector.
“With South Africa moving towards a more open electricity market with competitive trading, the prospects for grid batteries are set to grow,” Halsey adds, noting the global trend where grid battery capacity increased by 75% in 2022 compared to the previous year.
