South Africa is putting battery storage and gas-fired generation at the front of its next electricity procurement drive, signalling that the country’s immediate power challenge is no longer simply about adding generation capacity.
Electricity and Energy Minister Kgosientsho Ramokgopa has confirmed that the proposed first Section 34 determination under the Integrated Resource Plan 2025 will prioritise 4,600 MW of battery energy storage systems and 5,000 MW of gas-to-power capacity.
Together, the planned allocation amounts to 9,600 MW. New standalone wind and solar capacity will not form part of this first determination, although the government says subsequent procurement will address those technologies, including hybrid projects paired with storage.
From generation shortages to system flexibility
The sequencing highlights a changing problem in South Africa’s electricity system. Years of supply shortages made additional generation the dominant policy priority. But as renewable capacity expands, transmission constraints and the ability to move electricity to where and when it is needed have become increasingly important.
Government says increasing curtailment — when available generation cannot be accommodated because of network or operating constraints — is creating avoidable costs. Battery systems can absorb electricity that might otherwise be curtailed and discharge it during evening peaks or other periods of high demand.
That makes storage more than an accessory to renewable power. It is increasingly becoming part of the core infrastructure needed to operate a system with larger volumes of variable wind and solar generation.
Why gas remains part of the plan
The 5,000 MW gas-to-power allocation reflects a parallel requirement for dispatchable generation — electricity that can be called on when the system requires it. The government says procurement design will have to consider fuel availability, gas prices, port and pipeline infrastructure, grid connections, start-up times and commissioning schedules.
Gas nevertheless remains one of the more contested components of South Africa’s energy transition. Supporters see flexible gas generation as a potential complement to renewables and storage. Critics point to cost, infrastructure requirements and the risk of locking in additional fossil-fuel dependence.
The economic case will therefore depend heavily on how frequently plants operate, how fuel is sourced and whether the resulting electricity remains affordable.
An infrastructure investment programme
The government describes the IRP 2025 not only as an electricity planning framework but also as an infrastructure investment blueprint. Procurement is expected to be coordinated with transmission expansion, new industrial electricity demand and regional electricity trade.
It also intends to attach commitments around local manufacturing, engineering, construction, skills and broader ownership to the programme.
The next test is implementation. The 9.6 GW represents a procurement priority, not capacity already built or contracts already awarded. Translating the determination into bankable projects, competitive procurement and functioning infrastructure will determine whether the plan materially improves reliability.
What is already clear is that South Africa’s electricity debate is entering a different phase: generating more power remains essential, but storing, balancing and transporting that power is becoming just as important.
Sources
- South African Government: Minister Ramokgopa on battery storage and gas-to-power
- Reuters: South Africa to prioritise battery storage and gas-to-power projects
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