South Africa is prioritising 9.6 gigawatts (GW) of battery energy storage and gas-to-power projects as part of a new long-term electricity procurement strategy aimed at strengthening grid stability and preventing a return to an energy crisis.
Electricity and Energy Minister Kgosientsho Ramokgopa announced on Wednesday that the initial procurement programme will include 4.6 GW of battery storage and 5 GW of gas-to-power capacity. The projects form part of a new Section 34 determination covering additional generation capacity over the 2026–2037 planning period.
Battery storage to address surplus electricity
The government is accelerating battery storage as South Africa increasingly experiences periods of excess electricity, particularly when renewable generation is high but the grid cannot absorb all available power.
Battery systems can store surplus electricity and release it during periods of peak demand, helping to reduce renewable-energy curtailment while providing flexibility and faster balancing for the national grid.
South Africa currently has five battery storage projects totalling 513 megawatts, while the first five projects in the country’s battery procurement programme have already reached construction after attracting significant private investment.
Gas seen as dispatchable power source
The planned 5 GW gas-to-power allocation is intended to provide dispatchable electricity when renewable output declines or electricity demand rises.
South Africa is already evaluating proposals from four shortlisted consortia for a separate 2 GW gas-to-power procurement process. The country’s Integrated Resource Plan provides for as much as 16 GW of gas capacity in the energy mix by 2039.
However, gas development also presents challenges, including fuel availability, import dependence and exposure to international prices and currency movements. Ensuring reliable and affordable fuel supplies will therefore be critical to the success of the programme.
Renewables remain part of long-term strategy
Although battery storage and gas have been prioritised in the initial procurement phase, wind and solar projects are expected to be addressed in subsequent procurement rounds.
South Africa’s broader energy planning continues to envisage a major expansion of renewable generation as the country gradually reduces its reliance on coal. Government has also announced plans for a multi-year procurement pipeline intended to provide greater certainty to investors and developers.
The latest determination represents a significant shift toward a more flexible electricity system, with storage and dispatchable generation being used to complement renewable power and improve the reliability of South Africa’s electricity supply.
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