South Africa’s electricity authorities are moving to convert surplus generation on the grid into usable supply, with gas-to-power and battery energy storage systems (BESS) named as the delivery priorities for the next decade of procurement.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa announced the new Section 34 Determination for additional generation capacity at a media briefing on Wednesday, covering the 2026-2037 planning horizon. The determination, he said, advances the seventh administration’s inclusive growth and employment goals and reduces the cost-of-living impact on citizens.
The operational problem the intervention addresses is, in the Minister’s words, a new one. Following the clinical implementation of the Generation Recovery Plan by Eskom, the system now carries surplus electricity, which he described as a major risk in itself. Without action, curtailment arrangements could raise financing costs for future private sector generation projects, increase the risk of those projects failing, and undermine the economy’s ability to benefit from excess capacity. Storage, he argued, provides the answer: “technology gives us an opportunity to resolve that.”
The department set out in a statement how the storage leg is expected to work in practice. BESS is central to mitigating curtailment because batteries can charge from electricity that would otherwise be curtailed and discharge during evening peaks or other periods of need, converting surplus generation into usable electricity while providing rapid balancing and grid support. Placement matters as much as technology. Storage must be located and operated where it can access surplus electricity and discharge without reproducing the network constraint. Procurement will therefore be aligned with the charging and discharge requirements of the System Operator, supported by enforceable availability and performance obligations.
Delivery of this programme does not start from zero. By June last year, all five projects in the first battery storage bid window had reached commercial close and entered construction, attracting R15.4 billion in investment. The department noted that the country already has a foundation for expanding the programme, and the proposed 4,600 MW allocation will substantially expand the procurement of storage services.
Gas-to-power forms the second pillar of delivery. The proposed 5000MW allocation is designed to complement storage by providing dispatchable electricity when renewable output falls or demand rises. The department was clear that gas generation does not absorb surplus electricity; its contribution depends on flexible operation that allows renewables to serve demand during high-output periods and covers the remaining requirement when that output declines. Procurement design will address start-up times, ramping capability and minimum operating levels, while fuel availability, delivered gas prices, supporting port and pipeline infrastructure, grid connections and commissioning schedules will be assessed together. Affordability, the statement said, must be evaluated against the expected operating profile of the plants.
Meanwhile, both procurement streams sit within a wider delivery programme spanning transmission expansion, new industrial electricity demand and regional electricity trade. The department cautioned that BESS can mitigate curtailment, but sustained progress also requires delivery of the grid infrastructure needed to move electricity to consumers.
Ramokgopa framed the determination as a blueprint for tackling an immediate problem, tying it to the three apex priorities of the seventh administration: growing the economy and creating jobs, addressing the cost of living, and addressing poverty. “I’m confident that this presents a new way,” he said.
The procurement programme is also expected to carry local delivery commitments, supporting local manufacturing, engineering, construction, skills development and broader ownership of energy infrastructure through measurable obligations. The announcement was reported by the South African Government News Agency at https://www.sanews.gov.za/south-africa/south-africa-prioritises-gas-and-battery-storage.
Whether the plan succeeds will rest on execution: siting batteries where the surplus actually is, contracting gas plants that can ramp when renewables fall away, and building the transmission lines to carry the electricity to consumers.