About South African energy storage power station subsidies
This document provides a data table, subsidy and support descriptions, and references for the International Institute for Sustainable Development’s subsidy inventory for South Africa, published in 2024. This work draws upon a previous study of South Africa’s Energy Fiscal Policies, published in 2022.
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6 FAQs about [South African energy storage power station subsidies]
How much is South Africa spending on energy subsidies?
South Africa has an inventory of ZAR 172 billion (USD 10.4 billion) in energy subsidies in 2020/21.1 Government bailouts—including the ZAR 56 billion (USD 3 billion) bailout for South Africa’s state-owned utility Eskom in FY 2020/21—have placed a strain on the government budget.
Is South Africa a catalyst for energy storage demand?
South Africa's PV subsidy of 4 billion rands: A catalyst for energy storage Demand? In pursuit of its 2050 net-zero carbon emissions vision, South Africa has been making significant strides in promoting renewable energy development.
Does South Africa have a nuclear energy subsidy?
South Africa’s Nuclear Energy Corporation has been receiving additional funding for many years. Explicitly named as a subsidy in the 2019 budget review, the same amounts were renamed “indirect transfers” in later budget reviews (National Treasury, 2023b).
What is the largest battery energy storage system in Africa?
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.
Does South Africa receive state subsidies?
In the past, the Petroleum, Oil and Gas Corporation of South Africa (PetroSA) has received two different kinds of state support. Listed explicitly as subsidies in the 2020 budget review, the state’s national oil company was granted subsidies for its products and production in a non-transparent way.
What is the outlook for South Africa's Energy Future?
So far, the outlook is good: renewable sources now generate over 8% of South Africa’s electricity, and the government last year announced a bid window to add almost 15,000 MW of further renewable capacity, which should help put an end to recurrent power shortages.
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