The global average cost of battery storage fell by 40% between 2023 and 2024, according to the Volta Foundation Battery Report 2024. Battery energy storage systems are like giant rechargeable batteries that store excess electricity generated by sources, such as solar or wind, so they can be used when needed. In 2024, 69GW of battery storage was deployed around the world, just over half of it in China, followed by the United States.

In 2019, the cost of battery storage was $375 per kilowatt-hour (kWh). By 2024, that price had dropped to $165/kWh. The price decrease has driven a surge in the number of new battery storage projects being built around the world.

South Africa is no exception. In the last year and a half, 18 preferred bidders have been appointed to build grid-linked battery storage capacity under the government’s Battery Energy Storage Independent Power Producer Procurement Programme.