Enterprises producing energy storage batteries in Johannesburg South Africa

In South Africa, Battery Energy Storage is a key aspect of the first-of-its-kind hybrid project, Oya. Straddling the Western and Northern Cape Provinces, the hybrid facility will offer 86MW wind and 155MW Solar PV dispatchable power, coupled with 92MW/ 242 MWh battery energy storage.

Unveiled in 2023, thanks to $195 million from the International Bank for Reconstruction and Development (IBRD) and $220 million from AfDB, this flagship project represents the largest battery energy storage system (BESS) on the African continent.

Firstly, the local industry depends on imported battery cells as South Africa has limited local technology and does not have large-scale manufacturing capabilities (these cells constitute 60% to 70% of production costs). Supporting the research and innovation activities in battery cells will yield long–term benefits for this industry.

Battery storage on this scale had never before been attempted in sub–Saharan Africa. To convince the private sector to come on board would require a catalytic investment. That's where CIF's Clean Technology Fund (CTF) stepped in.

The second-largest battery assembly plant is owned Balancell, which recently upgraded its production facility in Cape Town to support up to 1GWh output per year. Balancell's biggest customer is Toyota Material Handling, while other well-known customers include Cape Fruit, Clicks Nestle, Shoprite, Spar, and Pick n Pay.

Thirdly, there is limited policy support and related regulatory enforcement in the industry. At present, there are no South African Bureau of Standards (SABS) specifications and standards for the Li-ion battery industry.