Are Li-ion batteries a viable source of back-up energy to the grid?
Li-ion batteries have been scaled-up to grid-scale size as a source of back-up energy to the grid in many advanced countries. South Africa has an emerging Li-ion battery industry, which if adequately supported, can become a key role player in supplying storage solutions to energy producers such as Eskom and other industrial embedded generators.
Do foreign-based companies dominate the supply of battery storage?
So far, foreign-based companies dominate the supply of battery storage for the projects that are in the pipeline. The country risks losing the opportunity produce energy storage batteries locally and to advance the industry. A number of challenges beset the local battery storage industry and active actions are required to unblock them.
Will battery storage be key to managing the electricity grid?
The IPP office states, “The expected rise in renewable energy production in the country means that battery storage will become key to managing the electricity grid. The large-scale battery storage capacity will be located at Eskom substations, with the utility buying the stored electricity from the successful bidders”
Will 513 MW of battery storage be needed?
In addition, the Independent Power Producer (IPP) office intends to request proposals to procure 513 MW of battery storage. The IPP office states, “The expected rise in renewable energy production in the country means that battery storage will become key to managing the electricity grid.
How will a new battery storage project impact the local industry?
The local industry is poised to benefit from economies of scale generated by the new projects that are in the pipeline and increased demand by industrial and household end-users. So far, foreign-based companies dominate the supply of battery storage for the projects that are in the pipeline.
Why does South Africa need a battery industry?
Firstly, the local industry depends on imported battery cells as South Africa has limited local technology and does not have large-scale manufacturing capabilities (these cells constitute 60% to 70% of production costs). Supporting the research and innovation activities in battery cells will yield long–term benefits for this industry.
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