“South Africa is moving to procure 9.6GW of battery storage and gas-to-power capacity as the country’s electricity system undergoes a dramatic shift from shortages towards periods of surplus generation. The government says the programme is intended to absorb electricity that would otherwise be curtailed, provide flexible and dispatchable power when demand rises, strengthen grid reliability and support longer-term economic growth.”
South Africa’s Energy Strategy Enters a New Phase
South Africa’s electricity crisis is entering an unexpected new phase. After years in which households and businesses were repeatedly confronted with load-shedding and concerns about insufficient generation, the country is now dealing with a different challenge: electricity supply can exceed demand during parts of the day.
Electricity and Energy Minister Kgosientsho Ramokgopa has therefore announced that the government will prioritise 4,600MW of battery energy storage systems and 5,000MW of gas-to-power capacity under the first Section 34 determination associated with the Integrated Resource Plan 2025. Together, the two technologies represent 9,600MW of planned capacity.
The announcement is significant because it shows that South Africa’s immediate electricity challenge is no longer simply about adding as many megawatts as possible. Instead, policymakers are increasingly focused on when electricity is available, where it is available and how effectively it can be delivered to consumers.
According to government, the system is experiencing growing levels of curtailment. Curtailment occurs when electricity that could otherwise be generated cannot be accommodated by the network or absorbed by demand. The result is that potentially useful electricity is left unused even though generation assets and infrastructure remain costly to operate and maintain.
SABC News reported that Ramokgopa said available electricity capacity was exceeding demand, with more than 4,000MW of surplus access capacity during daytime periods. The minister described the situation as a risk because electricity that could be serving households, businesses and industry is effectively being wasted.
Why Battery Storage Has Become a Priority
Battery energy storage is at the centre of the government’s response because it can change the timing of electricity supply.
Solar generation, for example, tends to be strongest during daylight hours. However, household and commercial demand can increase later in the afternoon and evening. Without adequate storage, surplus daytime electricity can be curtailed rather than retained for later use.
Large-scale batteries can charge when electricity is abundant and discharge when the system requires additional power. This makes storage particularly valuable in an electricity system with growing amounts of variable renewable generation.
The Department of Electricity and Energy says batteries can absorb electricity that would otherwise be curtailed and then release it during evening peaks or other periods of need. They can also provide rapid balancing and other grid-support services.
South Africa already has a foundation on which to build. Government says five projects from the first battery-storage procurement window, totalling 513MW, had reached commercial close and entered construction by June 2025, attracting approximately R15.4 billion in investment. The proposed 4,600MW allocation would therefore represent a substantial expansion of the country’s storage market.
However, the announcement does not simply mean that 4,600MW of batteries will immediately appear on the grid. Procurement, financing, construction, grid connection and commissioning will take time. The location of storage will also matter because batteries need to be positioned where they can absorb surplus power and discharge it without creating or worsening network constraints.
Gas-to-Power Will Provide Flexibility
The second major component of the programme is 5,000MW of gas-to-power capacity.
Unlike batteries, gas-fired power stations generate electricity rather than storing electricity produced elsewhere. Their principal advantage is flexibility. Gas generation can be increased when electricity demand rises or when renewable generation declines.
The government says the planned gas capacity is intended to provide dispatchable electricity and complement battery storage. Gas plants could therefore help the electricity system manage periods when solar or wind output is insufficient to meet demand.
South Africa is already evaluating proposals from four shortlisted consortia for 2,000MW of gas-to-power projects, according to Reuters. The country’s Integrated Resource Plan also provides for a larger role for gas in the national energy mix over the longer term.
The gas strategy, however, comes with important questions. South Africa must ensure that gas supplies are available, infrastructure is developed and electricity generated from gas remains affordable.
Those concerns are particularly relevant because the country’s gas industry faces supply challenges later this decade. Industry representatives have previously warned about declining supplies from Mozambique’s Pande and Temane gas fields and the need to develop alternative sources and infrastructure.
Consequently, building gas-fired generation without securing a reliable and competitively priced fuel supply would create another potential bottleneck.
No New Wind and Solar in the First Determination
One of the most notable features of the announcement is what the first procurement round does not include.
The initial Section 34 determination will not provide for new wind or solar capacity. Instead, the government is concentrating first on storage and dispatchable generation. A subsequent determination is expected to address new wind and solar projects, including hybrid renewable-energy projects combined with storage and longer-term pumped-storage developments.
This does not mean South Africa is abandoning renewable energy.
Rather, the policy reflects the immediate constraints facing the electricity system. Adding more solar and wind generation without sufficient grid capacity or storage could increase the amount of renewable electricity that has to be curtailed.
The government is therefore attempting to sequence new procurement differently: first strengthen flexibility and the ability to absorb existing generation, and then continue adding variable renewable capacity.
Reuters reported that South Africa’s long-term planning document envisages more than 105GW of new generation capacity by 2039, with renewable energy expected to account for more than half of that expansion.
Eskom Could Participate in New Procurement
Another important development is the opening of the procurement process to a wider range of participants.
Engineering News reported that the Independent Power Producer Office will implement the procurement processes and that all market participants, including Eskom, will be eligible to participate. Eskom has historically been excluded from some public procurement rounds, although the utility is increasingly positioning itself to participate in renewable-energy and storage development through its Eskom Green initiative.
Eskom is also developing a renewable-energy pipeline and is seeking partners for projects that could ultimately reach several gigawatts.
This could create a more integrated relationship between the state utility and private power producers. Rather than treating Eskom and independent producers as entirely separate parts of the electricity system, the new approach could encourage cooperation on generation, storage, transmission and grid development.
For investors, the procurement programme could also provide greater visibility into the government’s long-term energy requirements.
What the Programme Means for South African Consumers
For households, the most immediate question is whether the new strategy will help keep the lights on while controlling electricity costs.
The end of load-shedding has already represented a major improvement in electricity security. Eskom recently reported more than 500 consecutive days without load-shedding, while its energy availability factor had improved to 68.11% by the beginning of October. The utility also reported an R4.79-billion reduction in diesel expenditure compared with the same period a year earlier.
The challenge now is to make the improved electricity supply financially and technically sustainable.
If batteries can reduce curtailment, more of the electricity already being generated can be put to productive use. If flexible gas generation can provide dependable capacity during periods of high demand, the system may become more resilient.
However, major infrastructure programmes also require investment. Costs associated with procurement, grid expansion, fuel infrastructure and financing ultimately have to be considered when determining electricity affordability.
The government’s stated objective is therefore not simply to build more infrastructure but to ensure that new investment delivers electricity when consumers need it and at the lowest reasonable system cost.
The Bigger Economic Impact
Reliable electricity is fundamental to South Africa’s economic ambitions.
Manufacturing plants, mines, retailers, data centres, farms, offices and small businesses all depend on predictable electricity. During the worst years of load-shedding, unreliable supply constrained production and forced businesses to spend heavily on generators, batteries and alternative energy systems.
A more flexible electricity system could reduce those pressures.
Battery storage could also create new industrial opportunities in engineering, construction, maintenance, software, energy management and equipment manufacturing. Gas infrastructure could similarly support investment in power generation and potentially other industrial uses of gas.
The government has indicated that the procurement programme will include commitments relating to local manufacturing, engineering, construction, skills development and broader ownership of energy infrastructure.
This means the programme could become more than an electricity initiative. If implemented effectively, it could form part of a broader industrial-development strategy.
Execution Will Be the Critical Test
The announcement is substantial, but the success of the strategy will ultimately depend on implementation.
South Africa has previously announced major energy programmes that experienced delays caused by financing difficulties, regulatory uncertainty, transmission constraints, construction problems and procurement challenges.
This time, the government faces a different urgency. It needs to move quickly enough to capture surplus electricity while simultaneously ensuring that new projects are economically viable.
Ramokgopa has warned that failure to address the country’s changing electricity requirements could eventually lead to another supply crisis.
That warning highlights an important lesson from South Africa’s recent energy history: electricity security cannot be treated as a once-off problem. The system must continuously adapt as demand, technology, generation capacity and consumer behaviour change.
Conclusion
South Africa’s decision to prioritise 4,600MW of battery storage and 5,000MW of gas-to-power represents a major change in the country’s electricity strategy. The immediate problem is no longer simply a shortage of generation; it is increasingly the challenge of matching generation with demand and ensuring that electricity is available at the right time and in the right place.
Battery storage could help South Africa capture surplus electricity and move it into higher-demand periods, while gas-to-power could provide flexible generation when renewable output falls or demand rises. At the same time, the government intends to continue expanding wind and solar through later procurement rounds.
The strategy therefore points towards a more flexible electricity system in which batteries, gas, renewable energy, transmission infrastructure and existing Eskom generation operate as complementary components.
The announcement is also an important signal to investors. By opening procurement to market participants, including Eskom, the government is seeking to create a larger pipeline of energy infrastructure projects.
For South African households and businesses, however, the ultimate measure of success will be practical: reliable electricity, fewer system constraints, productive use of available generation and electricity costs that remain manageable.
After years of managing scarcity, South Africa is now confronting the complexities of abundance. How effectively the country converts surplus electricity into dependable and affordable power could determine the next chapter of its energy transition.
