As South Africa continues to embrace renewable energy, finding efficient ways to store energy has become crucial. One of the most promising solutions to this challenge is the Battery Energy Storage System (BESS). But what exactly is BESS, and why is it important for the country''s energy future? This guide breaks down the basics and explains how SOLA Group, as an Independent Power Producer (IPP), is leading the way in utilising this innovative technology.
A Battery Energy Storage System (BESS) is a technology that stores energy generated from various sources, such as solar or wind power, in large-scale battery systems. The stored energy can then be released when needed, ensuring a steady supply of electricity, even when renewable sources like the sun or wind are not available.
Think of BESS like a giant rechargeable battery. During the day, when solar energy production is at its peak, any excess energy generated that isn''t used immediately can be stored. Later, when the sun sets or during periods of high electricity demand, that stored energy is released, making it available for homes, businesses, and industries.
South Africa is heavily reliant on an ageing energy infrastructure, with much of the power coming from coal-fired plants. These plants are not only environmentally harmful but also inefficient in meeting the growing electricity demand. Frequent power outages (load shedding) have made the need for alternative energy solutions even more urgent.
At SOLA Group, we understand the vital role that BESS plays in the energy landscape. As an IPP with expertise in battery storage systems, we are committed to ensuring that South Africa’s transition to renewable energy is both seamless and effective. Here''s how we can help:
Battery energy storage is no longer just a future concept; it is rapidly becoming an integral part of South Africa''s energy landscape. As the country seeks to overcome its energy challenges, BESS will play a critical role in ensuring a reliable, sustainable, and cost-effective power supply for all.
At SOLA Group, we are proud to be leading the charge in this transition. Our cutting-edge BESS solutions are designed to make renewable energy more reliable and accessible for everyone. Whether you’re a business, municipality, or industry leader, we are here to help you harness the power of BESS and unlock the potential of clean energy.
If you''re interested in learning more about how SOLA Group can help your business or community implement battery storage solutions, click here to register your interest in purchasing a BESS solution. Together, we can build a sustainable, energy-secure future for South Africa.
In November 2023, SouthAfrica announced preferred bidders for the first Battery Energy Storage IPP Procurement Programme tender, which – if all implemented in full – would add 360MW of dispatchable battery storage capacity to the national grid, and are now expected to enter into power purchase agreements (PPAs) negotiations with Eskom. Building on the success of this first tender, SouthAfrica announced its plan to release a second tender in June 2024 with more than 1200MW capacity.
Within its Risk Mitigation IPP Procurement Programme, SouthAfrica also signed project agreements with six hybrid solar PV, wind and battery storage projects that could see more than 400MW of capacity added. Out of those, three projects with a capacity of 150MW have already begun commercial operation under a 15‑year PPA with Eskom, and the others have or were expected to commence construction in late 2023.
The international community is also contributing to the development of battery storage systems in SouthAfrica. For example, the World Bank and the African Development Bank recently approved funding for the battery storage element – worth around USD500million – of a hybrid project within the Eskom Just Energy Transition Partnership (JETP). This project aims to decommission one of SouthAfrica''s oldest coal-fired power plants and replace it with 220MW solar PV and wind power, as well as 150MW battery storage. The funding comprises significant amounts of highly concessional financing.
Nevertheless, significant obstacles still remain that require action: battery storage as well as hybrid projects often still face delays due to lengthy negotiation processes and bureaucracy and, given Eskom''s financial state, off-taker risk is still prevalent. Moreover, available grid capacity remains a significant constraint faced in particular by hybrid projects that combine battery storage with variable renewables, leading to project delays or cancellations.
The Hex site is specifically designed to store 100MWh of energy, enough to power a town such as Mossel Bay or Howick for about five hours. It forms part of Phase 1 of Eskom''s BESS project which includes the installation of approximately 833MWh additional storage capacity at eight Eskom Distribution substation sites in KwaZulu-Natal, Eastern Cape, Western Cape and Northern Cape. This phase also includes about 2MW of solar photovoltaic (PV) capacity.
"We are grateful to the various funders of the Eskom BESS project, and to our construction partner Hyosung Heavy Industries. This is proof of what we can achieve when we work as a team and in collaboration with industry and local communities," remarked Eskom''s Group Executive for Distribution, Monde Bala.
The BESS technology offers a versatile solution for improving overall grid performance and is in line with South Africa''s commitment to the just energy transition to a more resilient and sustainable energy future. The initiative demonstrates Eskom''s commitment in finding innovative solutions and embracing new technologies in preparation for the new era in the energy distribution landscape.
"We are pioneering the implementation of the BESS technology, serving as a large-scale commercial project to validate the technology’s feasibility and benefits. The successful implementation will pave the way for wider adoption and possible export of the technology to other regions beyond the borders of South Africa," said Eskom''s General Manager: Distribution, Operations Enablement, Velaphi Ntuli.
"The Hex project is a demonstration of what Eskom teams can do in finding alternative, innovative and lasting solutions in addressing the country''s electricity challenges," said Eskom''s Group Executive for Generation, Bheki Nxumalo.
The Hex project benefited the local community of Worcester by employing about 250 local community members, supporting twelve early childhood centres with playground and educational material, donation of computers, donation of five hundred full school uniforms. Furthermore, other corporate social investment projects are to be executed before the end of March 2024.
Upon completion of the first Phase, Eskom will implement Phase 2 of the project which includes the installation of a further 144MW of storage capacity, equivalent to 616MWh at four Eskom Distribution sites and one Transmission site. The solar PV capacity in this phase will be 58MW.
The rollout of these technologies together with a disciplined execution of our Generation Recovery Plan which started in March 2023, and aimed at achieving energy availability factor of 70% by end March 2025, will give the country the most needed megawatts to address capacity constraints.
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