Cost-effectiveness of local energy storage batteries in North Africa

Are battery energy storage systems developing in Africa?

Confirmed development of Battery Energy Storage Systems (BESS) across Africa is still small compared to global projections, says a study. The confirmed development of Battery Energy Storage Systems across Africa is still small compared to global projections – less than 0.5% of the global BESS capacity of 358GW by 2030.

Why is Africa a good place for battery production?

Each system can contribute uniquely to Africa's diverse energy storage needs. Africa's potential for local battery manufacturing is substantial due to its natural resource wealth and available labour force. The continent is rich in minerals such as lithium, cobalt, and graphite, essential components for battery production.

Will South Africa see significant growth in battery market in 2022?

In 2022, the country spent around USD 700 million on importing lithium-ion cells and batteries. Hence, owing to the above points, South Africa is expected to see significant growth in the African battery market during the forecast period.

How big is the Africa battery market?

The Africa Battery Market is expected to reach USD 4.66 billion in 2024 and grow at a CAGR of 6.55% to reach USD 6.41 billion by 2029. Duracell Inc, Panasonic Corporation, Toshiba Corporation, Exide Industries ltd and Murata manufacturing Co ltd are the major companies operating in this market.

How can governments reduce battery storage costs?

First, governments and international organisations can provide financial incentives such as grants, subsidies, or low-interest loans to lower the upfront costs associated with battery storage technology. Addressing infrastructure challenges requires a coordinated approach to upgrading existing grid systems and ensuring reliable maintenance.

What is a battery energy storage system?

The Battery Energy Storage Systems (BESS) project, which will create a 360 MW storage system across several renewable energy plants controlled by Eskom, South Africa's state-owned utility, was announced in November 2021.