In Africa, solar, wind and geothermal projects are gaining momentum as countries look to reduce their dependence on fossil fuels, lower carbon emissions and increase people’s access to electricity.
The rise of renewable energy in Africa has coincided with a decade of growth globally, with solar energy alone experiencing a 30% growth a year. For solar, the growing demand for clean electricity coupled with up to 80% reduction in the cost of solar PV panels has driven this growth.
This explains why Africa has experienced accelerated uptake of various forms of renewable energy in recent years. At 100 megawatts, Kenya’s Lake Turkana Wind Power Project is the largest wind farm in Africa. It can provide clean energy to a million homes.
In South Africa, solar PV projects are expanding rapidly. The country’s renewable energy programme under the Integrated Resource Plan (IRP) aims to add 17.8 gigawatts by 2030.
Egypt is another leader on Africa’s renewable energy front. Its Benban Solar Park, a 1.8GW facility, is one of the largest in the world, serving one million homes.
Solar mini-grids dot rural Nigeria, Uganda and Tanzania, lighting up homes and giving hope to millions of families on a continent where more than 600 million people still don’t have electricity.
But the continent is struggling to acquire storage facilities at the pace of the fast-growing installed generation capacity.
Renewable energy is generated intermittently. As sunshine lessens, wind speeds reduce and discharge (waterflow) changes, power generation decreases. This is where battery energy storage systems (Bess) come into play. Storage allows continued consumption even when supply is low or when no energy is being produced. It also helps to meet higher demands.
In countries such as South Africa, which experiences rolling blackouts, Bess helps to stabilise the grid, prevent disruptions and manage power demand more efficiently.
If Africa is to sustain its growth in renewable energy and create benefits for its population, implementing storage solutions becomes an imperative. Robust investment in storage will help to integrate different forms of energy into the grid seamlessly, thus promoting stable and uninterrupted power supply.
South Africa’s Kenhardt solar plant, which incorporates a 225MW battery storage system, comes to mind. The plant’s batteries store energy generated during the day and release it when the demand for power spikes, particularly in the evenings.
The project has one of the largest battery storage systems globally and highlights the potential of Bess to stabilise Africa’s power systems. Projects such as Kenhardt are, however, rare.
The market for large-scale battery storage facilities is still in its infancy. Even with its substantial storage system, South Africa’s renewable sector is far from reaching its potential.
Among the factors that inhibit widespread implementation of Bess in Africa, the high initial cost tops the list.
Even though prices for lithium-ion batteries have been dropping significantly in recent years, hitting $139/kWh in 2023 and expected to fall further to $80/kWh by 2030, these upfront costs remain a barrier for many African countries.
Lack of the legal infrastructure and regulatory frameworks in many African countries does not help the situation either. To develop Bess projects, strong government support is crucial. This may include enacting favourable policies and regulations as well as putting up compatible and strong grid infrastructure to accommodate energy storage systems.
This is the front where many African countries struggle. In most of the countries, the grid infrastructure is either non-existent or inadequate, which makes the integration of Bess more complicated.
Additionally, Bess functions optimally and effectively with a stable grid. An unstable grid characterised by voltage and frequency fluctuations can damage battery components and reduce its storage capacity.
Low investment is another hindrance. While some international investors are interested in African renewable energy markets, many are hesitant to invest in storage projects because of the high perceived risks and costs.
By nature, Bess projects are long-term commitments and the return on investment takes years. This makes them less attractive to investors who prefer power generation projects where returns can be realised more quickly.
There are also significant supply chain problems. The global demand for batteries has surged in recent years and original equipment manufacturers are struggling to keep up with the needs.
The bulk of the world’s battery storage technology is being produced in and sold to developed markets in the Global North and China.
Ironically, Africa is home to a host of raw materials necessary for battery production, namely lithium, cobalt and nickel. Since the advent of this technology, the continent has yet to fully capitalise on its critical mineral wealth.
The value-added processing that could power Africa’s battery production remains largely outside the continent, with China leading the industry. This limits Africa’s ability to develop its own storage infrastructure.
To address this gap, Africa needs increased technology transfer, particularly in the fields of battery production and storage systems. With abundant reserves of critical minerals like lithium and cobalt, the continent has the potential to become a key player in the global battery storage market.
African countries must, therefore, invest in local manufacturing capacity, including building factories for battery production and developing the expertise needed to maintain and repair storage systems.
Projects such as the Golomoti Solar plant in Malawi, which includes a 10MWh battery storage system, are a step in the right direction. But more efforts are needed to ensure that Bess projects are not just funded but also built with local capacity in mind.
To truly unlock Africa’s renewable energy potential, international investment is key. Africa needs concerted efforts from both the public and private sectors, where governments establish clear policies and regulations for Bess and create a favourable business climate for private investors and the international development partners.
To do this, a shift in focus from merely generating power to include the entire energy value chain, including storage solutions, is important.
When they committed to deploying 5GW of energy storage technology by 2027 as part of the Bess Consortium at COP28, Egypt, Ghana and Kenya demonstrated that this can be done.
Karabo Mokgonyana is a renewable energy campaigner at Power Shift Africa.
