The New Development Bank (NDB) will give Eskom a R6-billion loan to build a massive battery storage system in order to meet greater electricity demands.
This comes after the ailing power utility reached its breaking point with consistent load shedding and inadequate power supply to the country, which cost them in excess of R27-billion.
According to My Broadband, the bank made the announcement as part of a release on three projects it was funding; one each in South Africa, Brazil, and Russia.
“The project is primarily aimed at meeting peak electricity demand, increasingly through renewable energy, and avoiding emissions associated with utilisation of fossil fuels,” said the NDB.
Energy storage system at 90 sites
In total, the battery storage system will comprise of 360MW of energy storage at 90 sites in the Western Cape, Northern Cape, Eastern Cape, and KwaZulu-Natal.
At the time of the announcement, it was said that the battery storage infrastructure would be installed in containers at Eskom’s substations.
Eskom said the battery storage system will assist in its plan to increase solar and wind power in its energy mix from the current 7.2% (installed) to 25.6% in 2030 – a 350% increase.
Here’s how Eskom will benefit
Eskom said that the first phase of the project is expected to be completed at the end of 2020, and the second phase at the end of 2021.
The benefits of the battery storage system will include:
Photovoltaic (PV) output smoothing – solar energy is stored during the day for use at peak times;
Wind energy firming – battery storage is used to complement variable wind generation;
Energy arbitrage – energy is stored during low-generation tariff periods for dispatch at high-generation tariff periods;
Frequency and voltage support – battery capacity can be used in power mode as a generator; and
Peak clipping – the discharge of energy during peak times can be used to save costs.
Not first time NDB has bailed Eskom out
According to Business Report, the utility received a $180-million (about R2.5-billion) cash injection from NDB on 1 April 2019 to fund the integration of renewable energy into the grid and to augment transmission projects.
The bank said the loan, which was signed at the NDB’s fourth annual meeting in Cape Town on Monday, would provide Eskom with a sovereign guarantee for these projects.
