South Korea builds the largest energy storage facility in Africa

Photo credit: Eskom

Hyosung Heavy Industries of South Korea has completed the construction of the largest battery energy storage system (BESS) in Africa. The 20MW facility in Worcester, South Africa, is equipped to store 100MWh of energy. This storage means it can provide energy at its maximum output capacity of 20MW for five hours straight, enough to power a small town during that period. Known as the Hex BESS, the Hyosung-built site is part of the 833MWh first phase of a much larger BESS project launched by the state-run utility Eskom that will see a number of such facilities spring up across South Africa. Hyosung won contract for the Worcester facility on a Build-Operate-Transfer (BOT) principle. It is responsible for the design, installation, and provision of lithium-ion batteries. The South Korean giant will run and maintain the facility for the first five years and hand it over to Eskom.

Eskom last year awarded BESS contracts to Hyosung and a Chinese high-voltage electrical equipment maker, Pinggao. Hyosung and Pinggao have each secured contracts for three sites.

South Africa has been crippled by electricity shortages for over a decade. Frequent scheduled power outages, locally termed as ‘load shedding’, have resulted in some regions experiencing power cuts for up to 10 hours daily. Eskom, which is responsible for generating about 90% of the country's electricity, faces challenges with its aging coal-fired plants, which frequently malfunction due to neglect and poor maintenance. Years of underinvestment, mismanagement, and outright theft have exacerbated the energy crisis in the country.

The BESS scheme is designed to reduce the strain on South Africa's national electricity grid by augmenting the network during peak usage hours and aiding increased renewable energy generation. These battery energy storage systems are strategically positioned near independent renewable energy producers, specifically for storing power generated from wind and solar sources. Eskom has stated that it will assess the viability and advantages of this technology, with successful outcomes potentially leading to broader implementation. However, the International Institute for Sustainable Development said in a report earlier this year that grid storage, while beneficial, is not a panacea for South Africa’s electricity crisis and should not be seen as a standalone solution for load shedding.

A further two facilities in KwaZulu-Natal province are nearing completion, while another project in the Western Cape is on the verge of starting construction. Commercial negotiations for the remaining sites are nearing completion, after which construction will commence. Following the completion of the first phase, Eskom plans to launch the second phase, which involves adding a further 144MW of storage capacity, equivalent to 616MWh, across four sites.

The entire BESS project carries a US$590m price tag and is being co-financed by the African Development Bank, New Development Bank, the World Bank, and the Clean Technology Fund.

References

‘Eskom appoints service providers for its battery energy storage project’, Eskom, 19 July 2022

‘Eskom signs battery contracts with Pinggao and Hyosung as part of R11bn roll-out’, Engineering News, 22 June 2022

‘Construction of Eskom’s first battery energy storage project begins’, Eskom, 03 December 2022

‘Grid storage uptake in South Africa lacks direction or momentum’, Engineering News, 05 July 2023

‘Eskom unveils a first of its kind largest battery storage project in the African continent’, Eskom, 10 November 2023

‘Eskom unveils battery storage project - which can power a small town for up to 5 hours’, News24, 10 November 2023

‘Generation plant mix’, Eskom, Accessed 02 December 2023