The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has confirmed the proposed approach to the first section 34 determination under the Integrated Resource Plan 2025 (IRP 2025), prioritising 4,600 MW of battery energy storage systems (BESS) and 5,000 MW of gas-to-power.
The combined allocation of 9,600 MW responds to the electricity system’s immediate requirements for storage, flexibility and dispatchable supply. The first determination will make no provision for new wind or solar capacity. A subsequent determination will address these technologies, including hybrid projects coupled with energy storage and longer-term pumped storage development.
The IRP 2025 is both an electricity planning framework and an infrastructure investment blueprint. Its implementation must ensure that new investment delivers electricity that the system can accommodate and supply when households and businesses need it, on a least cost basis.
Increasing curtailment is placing additional pressure on electricity system costs. Curtailment occurs when available generation cannot be accommodated because of network constraints or operating conditions, including periods when supply exceeds demand. Electricity that could otherwise serve consumers is left unused, while infrastructure and contractual costs remain.
The procurement sequence therefore gives priority to improving the use of available electricity before adding further variable generation through the next determination.
Battery storage to mitigate curtailment
BESS is central to this approach. Batteries can charge from electricity that would otherwise be curtailed and discharge during evening peaks or other periods of need. This will help convert surplus generation into usable electricity, while providing rapid balancing and grid support.
Storage must be located and operated where it can access surplus electricity and discharge without reproducing the network constraint. Procurement will therefore be aligned with the charging and discharge requirements of the System Operator, supported by enforceable availability and performance obligations.
The objective is to reduce avoidable curtailment and the associated pressure on system costs. The value of battery storage will be measured through the electricity shifted into useful periods and the reliability services delivered.
South Africa already has a foundation for expanding this programme. By June 2025, all five projects in the first battery storage bid window, totalling 513 MW, had reached commercial close and entered construction, attracting R15.4 billion in investment. The proposed 4,600 MW allocation will substantially expand the procurement of storage services.
Gas-to-power to provide flexible, dependable supply
The proposed 5,000 MW gas-to-power allocation will complement storage by providing dispatchable electricity when renewable output falls or demand rises.
Gas generation does not absorb surplus electricity. Its contribution depends on flexible operation that allows renewable generation to serve demand during high-output periods and supplies the remaining requirement when that output declines.
Procurement design will address start-up times, ramping capability and minimum operating levels. Fuel availability, delivered gas prices, supporting port and pipeline infrastructure, grid connections and commissioning schedules will be assessed together. Affordability must be evaluated against the expected operating profile of the plants.
Storage and gas procurement will form part of a coordinated programme of transmission expansion, new industrial electricity demand and regional electricity trade. BESS can mitigate curtailment, but sustained progress also requires delivery of the grid infrastructure needed to move electricity to consumers.
The procurement programme will support local manufacturing, engineering, construction, skills development and broader ownership of energy infrastructure through measurable commitments.
“This approach advances the seventh administration’s priorities by improving the use of available electricity, supporting dependable supply for industrial production and employment, and addressing avoidable costs that place pressure on electricity affordability” Minister Ramokgopa said.
