South Africa battery storage and gas fired power will get first call on new electricity procurement, under a plan Electricity and Energy Minister Kgosientsho Ramokgopa unveiled Wednesday.
Speaking at a media briefing in Pretoria, Ramokgopa announced a new determination under Section 34 of the Electricity Regulation Act, which lets the minister declare that new generation capacity is needed. It covers the 2026 to 2037 planning period and is the first step in carrying out the Integrated Resource Plan 2025.
The determination sets aside 4,600 megawatts for battery energy storage and 5,000 megawatts for gas to power projects, about 9.6 gigawatts in all. It includes no new wind or solar capacity. Ramokgopa said a later determination will cover variable renewables, hybrid projects and pumped storage.
Why storage comes first
The minister said the priority is to make better use of clean power the country already produces. Wind and solar projects are held back by weak transmission lines, so some output goes to waste. The government also pays compensation to renewable producers when the grid cannot take their electricity, and Ramokgopa said storage is central to cutting those payments.
South Africa now has just five battery projects, with a combined capacity of 513 megawatts. All five projects in the first bidding round reached financial close and entered construction, attracting R15.4 billion in investment, according to the government. The new allocation would be many times larger.
What the gas plants are for
Gas is meant to complement the batteries. Unlike storage, gas plants do not absorb surplus power. They can, however, supply electricity on demand when wind and solar output drops or demand spikes.
The government has said it wants about 16 gigawatts of gas in the energy mix by 2039. Officials are also reviewing bids from four shortlisted consortia for an initial 2 gigawatts. Ramokgopa said both programs will be tied to wider efforts to expand transmission, serve new industrial demand and boost regional electricity trade.
The bigger plan
The announcement sits inside a larger blueprint. A planning document released last year calls for more than 105 gigawatts of new generation by 2039, with renewables making up over half as the country gradually reduces its reliance on coal. The department said storage and flexibility should be core parts of the future power system, not afterthoughts once generation has been planned.
The warning behind the plan
Ramokgopa framed the move as a matter of urgency. If the government does not act now, he said, South Africa is “likely going to revert to a situation of crisis.” Planning matters, he added, but execution matters most. South Africa lived through years of rolling blackouts, and Pretoria is trying hard to avoid a repeat.
Industry welcomed the announcement. Joanne Dean, chair of the South African Energy Storage Association, said she was pleased to see battery storage recognized in future procurement.
Developers now wait for the bidding rules and timelines, which will decide how quickly the plan turns into projects. Until then, the plan remains a promise on paper.
