Bloemfontein energy storage revenue policy

Is South Africa ready for energy storage?

The extent to which the South African market is ready for energy storage is considered in subsequent sections. The 2030 vision outlined in the National Development Plan (NDP) of 2011 set the objective to completely eliminate income poverty and reduce inequality in the country.

Does project finance apply to energy storage projects?

The general principles of project finance that apply to the financing of solar and wind projects also apply to energy storage projects. Since the majority of solar projects currently under construction include a storage system, lenders in the project finance markets are willing to finance the construction and cashflows of an energy storage project.

What are the limitations of energy storage?

Limitations. A scenario of concurrent generation is unlikely with energy storage typically deployed to extend the hours of supply rather than increase the instantaneous output. Power control systems can readily prevent concurrent supply and confine the network requirement. Grid requirement.

What is the value of energy storage?

Therefore, unless used exclusively for backup power supply or to provide ancillary services, the value proposition for energy storage depends greatly on the time value of the electricity when charging compared to when discharging or selling irrespective of where the system is located on the grid.

Should energy storage services be monetized?

An unbundling of costs and greater transparency would enable more energy storage services to be monetized. A reduced differential between peak and off-peak periods would reduce the business case for energy storage. A clear response to these suggested changes would be beneficial to address market uncertainty and concerns.

What are the key findings from the energy storage policy assessment?

The key findings that emerged from this assessment can be summarised as follows: The literature review and case studies revealed that a policy environment that recognises and signals the strategic value of energy storage can direct and enable development and investment in the sector.