South Africa is being urged to take cues 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).
The report emphasizes the need for location-specific solutions to support grid stability and enhance flexibility for renewable energy generation. One key strategy highlighted in the report is enabling battery operators to tap into multiple revenue streams and providing specific financing options for initial projects.
Interviews with industry experts reveal that access to revenue streams and upfront capital are major concerns for potential grid-battery developers. The report stresses the importance of focusing on revenue stacking to improve access to capital and ultimately drive deployment.
In addition to supportive policies and regulations, the report calls for financial compensation frameworks, market development, and tariff structure revisions to strengthen the business case for grid batteries. It also points out the lack of awareness and financial barriers as key obstacles to the widespread adoption of grid batteries.
Lead author Richard Halsey believes that grid batteries can revolutionize the energy landscape in South Africa by complementing renewable sources like solar power. Furthermore, the growing demand for batteries presents economic opportunities, especially given the country’s abundant reserves of critical minerals like vanadium.
By investing in local production and beneficiation of these minerals, South Africa can potentially shield itself from battery cost fluctuations and create new jobs in the process. With a shift towards a more competitive electricity market, the prospects for grid batteries in South Africa are bright, with global capacity expanding rapidly year on year.
The report, titled ‘Watts in Store Part 2’, underscores the transformative potential of grid batteries for South Africa’s energy sector and highlights the need for strategic planning and investment to realize these benefits.
