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Power cuts push businesses towards alternative solutions

21st February 2020

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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With load-shedding now a part of South Africa’s long-term reality, the private sector is increasingly seeking solutions to minimise the operational and financial implications of the crisis.

In the spotlight, as an alternative to the national grid, is the deployment of battery storage, from standalone systems to solutions combined with rooftop solar photovoltaic systems.

“The demand for decentralised energy solutions is growing fast and gained traction when Stage 6 load-shedding hit South Africa last year,” says consulting firm Synergetics Sustainable Solutions director Teri Kruger.

The rotational blackouts have resulted in significant losses across the board, with South Africa’s gross domestic product growth rate now reduced to less than 1% for the year.

“Large users such as manufacturing, mining and agriprocessing, as well as entrepreneurs, are trying to plug the gap so they can keep their business running and minimise losses.”

Local lithium-ion battery manufacturer Solar MD CEO Kaloyan Dimov notes that demand is increasing for energy storage systems.

“Production facilities are seeking battery storage solutions to take some or all of their activities off the grid, while others are looking for grid-connected battery systems that can help them bridge the gap during power outages.”

Solar MD, which manufactures the Solar MD Logger V2, currently produces over 36 MWh lithium-ion batteries a year and expects to produce 60 MWh a year in the short term at its 1 500 m2 factory in Cape Town.

Rapid Response The uptake of private and public renewable-energy installations and the displacement of diesel generators to avoid carbon dioxide emissions have driven the company’s rapid response to increase production lines and the expansion of the facility, Dimov explains.

“While the South African battery storage sector is still relatively small, the market will continue to pick up as the country’s energy supply remains insecure and electricity costs keep increasing,” he says, referring to State-owned power utility Eskom’s 350% energy price jump between 2008 and 2017.

Kruger notes that South Africa will follow the rest of the world in terms of the adoption of battery storage technology.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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