As the global energy transition accelerates, South Africa is quietly becoming a major player in one of the sector’s fastest-growing energy segments: Battery Energy Storage Systems (BESS). With 1.3 GWh of installed capacity, South Africa now ranks eighth globally according to a recent benchmark study by Rho Motion. Energy experts agree this is a remarkable position to be in, especially for an emerging market still battling the legacy of load shedding and ageing infrastructure.
At the upcoming Africa Energy Forum (AEF) which starts today in Cape Town and runs until Friday, 20 June, all attention will turn to the role of BESS in stabilising Africa’s electricity grids. South Africa’s progress offers a compelling case study – one increasingly shaped by independent power producers (IPPs) like Mulilo.
“Battery storage is no longer optional. It’s now essential to South Africa’s energy future,” says Logistics & Procurement Manager at Mulilo, Bernard Janse van Rensburg. “It allows us to harness solar and wind energy when it’s abundant and then distribute it when it’s needed most, filling the gap left by our baseload power, effectively stabilising the national grid.”
Battery storage is reshaping the national grid
BESS store energy typically generated from renewable sources or off-peak grid supply. With the energy stored, these systems can then discharge the power when demand surges. In a country where rolling blackouts have cost the economy billions, the technology holds significant promise.
Most of South Africa’s current projects utilise lithium-iron-phosphate (LFP) batteries, which are prized for their thermal stability and long -lifecycle. However, as new procurement windows emerge, alternative chemistries such as flow batteries and solid-state storage are entering the conversation, especially for longer-duration applications, which are essential for large nationwide infrastructure tenders.
“What makes battery storage so attractive is its versatility,” Janse van Rensburg explains. “Beyond energy shifting, BESS can help balance the frequency of the grid, reduce the need for expensive diesel peakers, and even defer transmission upgrades.”
Government procurement driving private sector momentum
Much of the country’s recent progress stems from the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), a government-led initiative to bring large-scale storage online.
In the first round of bidding, Mulilo secured 1 GWh of storage capacity in partnership with French energy giant EDF. The second round saw the company sweep all five of its submitted projects, adding a further 1.5 GWh to its portfolio. In the most recent bidding round, Mulilo was awarded four projects with a total capacity of 1.97 GWh.
“The demand from Eskom is there, the technology is ready, and the private sector is mobilised,” says Janse van Rensburg. “What we need now is consistency in procurement, opening up of the live market and clarity on stacked revenue models which fully utilise all the benefits to unlock long-term investment.”
Regulatory bottlenecks and financial uncertainty remain
Despite South Africa’s early adoption of BESS, challenges remain. IPPs like Mulilo experience delays in accessing the grid, along with other regulatory and funding issues.
“We urgently need to simplify the interface between public and private sector players,” says Janse van Rensburg. “Failing to act could undermine the momentum we've established.”
He says one of the biggest missed opportunities is the lack of revenue stacking – a mechanism used internationally to enable BESS projects to participate in multiple markets from energy trading to ancillary services to capacity provision. “Without it, developers are restricted to a single income stream, limiting the business case to achieve more competitive tariffs”
Mulilo’s full-circle IPP strategy
As South Africa embraces a Just Energy Transition in a rapidly evolving landscape, Janse van Rensburg says Mulilo has repositioned itself as a vertically integrated IPP, managing everything from land acquisition to engineering, construction, and long-term operations.
This end-to-end strategy is central to its ambitions, says Janse van Rensburg: “We see battery storage not as a bolt-on, but as an essential component of the future energy supply mix. Whether it’s solar, wind, or hybrid developments, BESS is the enabling technology and will be part of the design from day one.”
As policymakers, utilities, and investors gather at AEF, Janse van Rensburg is confident -BESS will rank high on the agenda. “This is a moment for alignment. If we can get the regulatory and commercial models right, South Africa could become a global leader, not just in battery deployment, but in demonstrating how they can transform an entire national grid,” Janse van Rensburg concludes.
