Energy Security in South Africa: the business case for energy storage

This 2020 industry brief by GreenCape examines the business case for energy storage in South Africa, focusing on the role of hybrid solar PV and battery systems in mitigating the impact of severe load shedding.

• South Africa experienced its worst year of load shedding on record in 2019, with 530 hours and 1352 GWh of lost energy, reaching up to Stage 6. This crisis is expected to persist for 3-5 years unless decisive actions are taken.
• Lithium-ion and Lead Acid batteries are the leading technologies in the South African back-up power market. Specifically, Lithium Iron Phosphate (LiFePO.4) is the dominant lithium-ion technology due to its operational stability, defined performance ratings, and low manufacturing costs.
• There is a significant market opportunity for energy storage as a replacement for diesel generation and as a component of solar PV hybrid systems. If 25% of new solar PV installations include storage, the potential market could reach approximately 200MWh per year, valued at roughly R2 billion annually.
• The financial viability of hybrid solar PV and Li-ion storage systems varies by scale. For a modelled 100kWp solar PV system, adding Li-ion storage doubles the capital cost and extends the payback period from 4-7 years to 8-12 years, though this period can be reduced if the cost of lost business operations is considered.
• Other storage technologies, such as Hydrogen and Vanadium Redox Flow batteries, have limited market penetration in South Africa because they require specific use case analysis for feasibility and are generally purpose-built for large capital utility-scale applications.

APA

Strydom, J. (2020). Energy Security in South Africa: the business case for energy storage. GreenCape. https://greencape.co.za/wp-content/uploads/2022/10/20200330_Industry-Brief_Energy-Storage-3.pdf

Chicago

Strydom, Johan. Energy Security in South Africa: the business case for energy storage. GreenCape, 2020. https://greencape.co.za/wp-content/uploads/2022/10/20200330_Industry-Brief_Energy-Storage-3.pdf.

Wikipedia

{{cite report |last1=Strydom |first1=Johan |title=Energy Security in South Africa: the business case for energy storage |publisher=GreenCape |date=2020 |url=https://greencape.co.za/wp-content/uploads/2022/10/20200330_Industry-Brief_Energy-Storage-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{strydom2020energy, author = {Strydom, Johan}, title = {{Energy Security in South Africa: the business case for energy storage}}, institution = {GreenCape}, year = {2020}, url = {https://greencape.co.za/wp-content/uploads/2022/10/20200330_Industry-Brief_Energy-Storage-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }