Market Trends of Africa Thermal Energy Storage Industry
This section covers the major market trends shaping the Africa Thermal Energy Storage Market according to our research experts:
Power Generation Sector to Dominate the Market
- Excess energy generation available during low demand time can be used to charge a thermal energy storage system to increase effective generation capacity during high-demand periods. This results in a higher load factor for the plants, helping them to generate energy stably.
- In many African countries, energy storage technology aids the grid operators in managing variable energy generation from renewable, like solar and wind energy. Utilities use energy storage technologies in various applications, such as time shifts and supply capacity, to meet the demand-supply gap efficiently, hence, driving the thermal energy storage market.
- Concentrated Solar Power (CSP) plants dominate African energy storage deployment, which is the cheapest way to store solar energy over long hours. In 2021, CSP installation in Africa totalled 1,085 MW, an increase of over 230% from 2015. Therefore, it is a stabilizing factor for the energy-supply system and is expected to drive the market during the forecast period.
- In February 2022, Botswana's Ministry of Mineral Resources, Green Technology, and Energy Security (MMGE) invited bids from national and international independent power producers (IPPs) to design, construct, own, operate, and maintain a 200 MW concentrated solar power (CSP) project (2*100 MW) in the country. A total of two 100 MW units will be constructed in the villages of Letlhakane and Maun in Botswana. The project is expected to be operational by 2026/2027, based on a Power Purchase Agreement (PPA) with the Botswana Power Corporation for 30 years.
- Therefore, Africa holds great potential for growth in the future, as the region has many concentrating solar power (CSP) projects, which include thermal energy storage, installed in countries, like South Africa and Morocco, in turn, increases the demand for thermal energy storage system during the forecast period.
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South Africa to Dominate the Market
- South Africa's grid is challenged by increasing demand due to a growing economy. Therefore, the country is shifting toward CSP with energy storage. Moreover, the integration of renewable generation is likely to drive the African thermal energy storage market.
- Under South Africa's Renewable Energy Independent Power Producer Procurement Program, the government included bidding rounds for CSP plants with energy storage. These initiatives are, therefore, expected to supplement the increasing demand for thermal energy storage technologies during the forecast period. In 2021, CSP installation in South Africa totaled 500 MW, an increase of over 400% from 2015.
- In February 2022, A South African concentrated solar power (CSP) project named Redstone completed its first debt drawdown on the largest renewable energy investment in South Africa. The African Development Bank served as the mandated lead arranger (MLA) for the total investment amounting to USD 0.67 billion and coordinated the project with a commitment of USD 0.13 billion. The commercial operation is scheduled to begin in the fourth quarter of 2023
- In November 2021, Wee Bee Ltd., a South African farming company, placed an order with Azelio for eight units providing 1.3 MWh of clean electricity supply for its long-duration energy storage, TES.POD. As a thermal energy storage system, the TES.POD uses recycled aluminum storage media. Although the system has a lifespan of 30 years, recycled aluminum storage media can be reused many times without degradation of capacity over time, resulting in a truly sustainable and reliable solution.
- As several thermal energy storage technologies exist, South Africa plans to incorporate it to add grid flexibility at a low cost and meet the increasing electricity demand, in turn promulgating the thermal energy storage market in the region.
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