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A discussion at the recently held Solar Power Africa conference highlighted the critical role of this technology in ensuring solar energy’s reliability and efficiency As solar power adoption accelerates, the demand for reliable energy storage solutions has become increasingly urgent. Experts gathered at a recent panel discussion on battery energy storage at a conference in Cape Town to examine the latest advancements in the sector and its potential to transform the energy landscape in South Africa and beyond. Moderated by Jo Dean, spokesperson for the South African Energy Storage Association (SAESA_, the discussion at Solar Power Africa 2025 highlighted the critical role of battery storage in ensuring solar energy’s reliability and efficiency. Dean said that, while solar and other renewable energy sources have gained significant traction, energy storage has often been sidelined. However, with South Africa’s ongoing energy crisis, the need for scalable and effective storage solutions has never been more pressing. Frank Spencer, Regional Director at Cainmani, cited a recent academic study published in Nature, which suggests that by 2030, solar paired with battery storage will be the cheapest form of electricity generation globally. Battery energy storage uptake to surge over the next few years According to the report, this shift could happen even earlier in some regions, including South Africa. Spencer noted that the cost of moving stored solar energy to later times of the day has plummeted, making it a more viable option for power security and grid stability. “… academic study basically arguing that by 2030 in every country in the world, solar plus battery will be the cheapest main source of generation. And that by 2027 that will be true for most countries, with some exceptions, and that’s just around the corner and it’s arguable that that’s already arriving in South Africa… “As I used to argue, that solar was the ugly duckling in the room, and has completely become the swan in terms of producing the lowest cost electricity. But it does that when the sun is shining. So you’re constrained by the variability of the sun. “The other ugly duckling has been batteries, arguably, that now has also matured… we’ve seen prices dropping exponentially in these technologies.” Improvements in the tech drive greater levels of trust Spencer further emphasised the dramatic evolution of battery technology, stating that, unlike solar photovoltaics (PV), which took over a decade to gain mainstream acceptance, batteries have seen rapid improvements in just a few years. He recounted early scepticism towards solar PV and likened it to the current phase of battery storage adoption, asserting that the technology is now on the brink of widespread deployment. One of the key advantages of battery storage, Spencer explained, is its ability to provide dispatchable power – electricity that can be delivered precisely when needed. Battery technology is also proving to be essential for off-grid communities, especially in remote areas across Africa. Spencer, who has worked on solar and storage projects across the continent since the early 2000s, highlighted that while initial costs were once prohibitive, falling battery prices have made off-grid solar solutions more competitive than traditional diesel generators. This shift is not only reducing carbon emissions but also improving energy access for underserved communities. The discussion also touched on the increasing role of local battery manufacturing in South Africa. Spencer noted that the country already has several successful lithium battery manufacturers, with some expanding operations internationally. He highlighted the importance of moving beyond simple battery assembly to fully integrated local production, which could drive economic growth and job creation in the renewable energy sector. Africa’s solar revolution and the rise of battery storage John van Zuylen, CEO of the Africa Solar Industry Association (Afsia), told the audience that he has witnessed a dramatic increase in the adoption of storage solutions. “In the past, solar was the main driver and storage was only included when necessary and affordable. Now, storage is what truly enables solar projects.” The data supports this shift. Afsia’s database, which tracks solar projects across Africa, recorded an average of just 50 megawatt-hours (MWh) of storage annually until two years ago. In 2022, that figure tripled to 150MWh. Last year, it skyrocketed to an estimated 1,700 MWh – more than a tenfold increase. Looking ahead, announced projects indicate that 18 gigawatt-hours (GWh) of storage will be deployed in the coming years. This exponential growth is fuelled by the decreasing cost of lithium-ion batteries, which have proven to be more reliable than older lead-acid alternatives. Business case for battery storage Also, the financial case for battery storage is becoming increasingly compelling. Daniel Goldstuck, Managing Chief Commercial Officer at SustainPower, points out that the cost of solar panels has dropped by over 90% in the past decade. “But battery storage is what truly provides the solution.” In South Africa, for example, businesses can use storage to reduce their energy costs. “So everyone who can, every business, should be investing in battery storage. This is an interesting funding opportunity, because between raising capital and investing that capital, there is a delta that can fund your funding operations,” said Goldstuck. Challenges, opportunities for local manufacturing While the demand for battery storage is surging, local manufacturing remains a challenge. Prinaven Naidoo, Senior Account Manager at Sungrow, highlighted the barriers to localisation. “OEMs [Original Equipment Manufacturers] are open to local production, but the uncertainty in South Africa’s renewable energy procurement programme makes investment risky,” he said. “Setting up a full-scale manufacturing facility is expensive and past policy disruptions have driven manufacturers out of the market.” |
