South Africa is preparing a new phase of energy infrastructure procurement with 4,600 MW of battery energy storage systems (BESS) and 5,000 MW of gas-fired power generation , while postponing the addition of new solar and wind capacity to a later stage.
The decision was communicated on October 7 by the Minister of Electricity and Energy, Kgosientsho Ramokgopa , who confirmed the planned approach for the first ministerial determination under the Integrated Resource Plan 2025 (IRP 2025) .
The program envisions a joint allocation of 9,600 MW , with the aim of responding to the immediate needs for flexibility, storage and manageable generation of the South African electricity system.
Unlike other energy expansion processes, this first stage will not include new wind or solar photovoltaic capacity. Both technologies will be considered in a later decision, which could also incorporate hybrid projects with storage and new pumped-storage hydroelectric facilities.
The change in priorities responds to a growing problem: South Africa has electricity that it cannot always use due to transmission restrictions, operating conditions, or periods when supply exceeds demand .
According to the Ministry, these generation cuts, known as curtailment , generate additional costs for the system, since part of the available electricity is not consumed, while contractual commitments and infrastructure costs are maintained.
For this reason, the Government is seeking to improve the use of existing energy before moving forward with new contracts for variable renewable generation.
Storage takes center stage with 4.6 GW
BESS systems will play a central role in this strategy, allowing electricity that might otherwise go to waste to be stored and delivered later during peak consumption or when renewable production decreases.
In addition to transferring energy between different times, the batteries will be able to provide rapid response, regulation and support services to the electrical grid.
However, the Ministry warned that the location and operation of the projects will be crucial to achieving these objectives.
The facilities must be located in places where they can access surplus electricity and subsequently discharge it without reproducing the network restrictions they seek to solve.
Consequently, future contracts must meet the system operator's loading and unloading requirements and incorporate verifiable availability and performance obligations.
The objective will be to evaluate the contribution of the batteries not only by their installed capacity, but also by the amount of electricity they can transfer to periods of greater need and by the reliability services they provide.
The new allocation represents a leap in scale compared to the country's first storage contracts.
According to official information, the five projects awarded in the first round of BESS, totaling 513 MW, had reached financial closure and started construction by June 2025 .
These initiatives mobilized investments of approximately 15.4 billion South African rand , establishing an initial foundation for the development of large-scale storage.
Given that precedent, the 4,600 MW now prioritized would considerably expand the volume of capacity that South Africa seeks to contract.
However, the announced decision constitutes a planning and enabling stage for future contracts, so it does not yet imply that this power has been tendered or awarded.
Another 5,000 MW of gas-fired power to support renewable generation
The Government will complement the expansion of storage with an allocation of 5,000 MW of gas-fired power plants , intended to provide manageable capacity when renewable production decreases or demand increases.
Unlike batteries, these installations will not be able to absorb excess generation. Their function will be to provide additional electricity when the system requires it.
Therefore, the design of the contracts must consider aspects such as the start-up times of the power plants, the speed of response to variations in demand, and the minimum levels of operation.
The availability and price of fuel, the necessary port and pipeline infrastructure, electrical connections, and commissioning timelines will also be jointly assessed.
The Ministry indicated that the economic viability of these projects should be analyzed according to their planned operational profile, rather than considering only their nominal capacity.
Transmission and investments, the other conditions for reducing discharges
Although storage appears to be one of the main responses to generation cuts, the Government acknowledges that batteries alone will not solve the structural limitations of the electricity grid .
For this reason, the contracts for BESS and gas-fired generation will be integrated into a broader strategy that includes the expansion of transmission, the development of new industrial electricity demand, and the regional exchange of electricity.
Expanding the transport infrastructure will be necessary to ensure that available energy can effectively reach consumption centers.
The program will also seek to boost local equipment manufacturing, engineering, construction and worker training, along with commitments aimed at expanding ownership participation in energy infrastructure.
With this first determination of the IRP 2025, South Africa modifies the sequence of its upcoming electricity contracts : before incorporating new volumes of solar and wind generation, it intends to expand storage capacity and operational flexibility to make better use of the electricity it already produces.
The next stage will be the definition of the competitive processes that will allow the transformation of the 4.6 GW of BESS and 5 GW of gas generation into concrete projects.