Watts in Store Part 2

Table of Contents

• 1.0 Introduction 13
• 1.1 International Experience 13
• 1.2 South African Context 16
• 2.0 Maximizing the Local Benefits of Grid Batteries 18
• 2.1 An Optimal National Rollout Strategy for Grid Batteries 18
• 2.2 Technology Choice and Value Chain Development 21
• 3.0 Minimizing Human Rights Violations and Environmental and Safety Risks Associated With Grid Batteries 26
• 3.1 Harmful Raw Material Extraction and Processing 26
• 3.2 Overheating and Fire 29
• 4.0 Solving the Challenges of Grid Battery Deployment 30
• 4.1 Insufficient Understanding of Grid Batteries 30
• 4.2 Technical Challenges 30
• 4.3 Economic Challenges 32
• 4.4 Electricity Sector Framework Challenges 42
• 5.0 Priority Actions to Support Strategic Objectives to Enable Grid Battery Storage 52
• Objective 1: Improve the basis for planning and decision making 52
• Objective 2: Facilitate access to multiple revenue streams 54
• Objective 3: Support immediate local value chain opportunities 54
• References 56
• Appendix A. Battery Storage Type Based on Location Within System 67
• Appendix B. South Africa-Specific Energy Storage Studies 68
• Appendix C. Grid Battery Capacity Additions in Power System Models 70
• Appendix D. Battery Technology Choices for South Africa 73
• Appendix E. National Government Plans 75
• Appendix F. Laws and Regulations 76
• Figure 1. Spatial allocation of generation and storage in 2032 as per TDP 2022 20
• Figure 2. Basic value assessment of a grid battery 34
• Figure 3. Example of the installed capital cost breakdown for a 60 MW LIB of 4-hour duration 35
• Figure 4. Factors influencing charging and discharging tariffs for a grid battery 37
• Figure 5. Eskom average tariff increases from financial years 2015 to 2024 38
• Figure 6. Battery capacity in IRP 2019, IRP 2023, and TDP 2022 43
• Figure 7. Actions to improve the basis for grid battery planning and decision making 53
• Figure 8. Actions to enable revenue stacking 54
• Figure 9. Actions to support immediate local value chain opportunities 55
• Figure A1. Energy storage described by location within the electricity system 67
• Table ES1. Selected suggestions to address challenges of grid battery deployment 7
• Table 1. A comparison of grid battery deployment features in different regions 14
• Table 2. Summary of opportunities for South African value chain development 23
• Table 3. Estimated job creation in South Africa to 2030 for battery value chain scenarios 25
• Table 4. Technical challenges and possible solutions for grid battery deployment in South Africa 31
• Table B1. Studies on energy storage in South Africa 68
• Table C1. New battery storage capacity to 2030 in published power system modelling outputs 71
• Table E1. Varying grid battery capacity allocations in national government plans 75
• Table F1. A selection of relevant laws and regulations for energy storage 76
• Box 1. Support for rapid grid battery deployment in South Australia 15
• Box 2. Steps toward battery reuse and recycling in South Africa 28
• Box 3. Risk: Increases in raw material prices 36