How Efficient Energy Storage Helps Factories Deal With Power Outages in South Africa

Africa is facing a chronic electricity crisis as blackouts, voltage fluctuations, and unreliable grids continue to affect millions of people across the continent. Even after introducing industrial reforms time and again, African industries are unable to deliver results according to their potential. Factories struggle to maintain operations, leading to production losses and missed opportunities in both local and global markets. The reliance on aging infrastructure and the slow adoption of renewable energy sources exacerbate the issue. All these problems are increasing the popularity of efficient energy storage solutions across Africa, which will revive industries and bring about a much-needed economic boom across the continent.

Causes of Instability in South Africa’s Power Grid

Despite being one of the most technologically and industrially advanced countries in Africa, South Africa has much to lose due to the electricity crisis.

Here are the top reasons for unstable electricity in South Africa:

1. Inadequate Infrastructure

The country’s power grid relies heavily on outdated equipment and systems, much of which was not designed to meet current industrial demand levels. Aging coal-fired power plants frequently experience breakdowns, leaving gaps in the electricity supply. Maintenance backlogs worsen the situation, with repairs often delayed due to logistical and financial constraints.

2. Insufficient Funds

Financial difficulties plague South Africa’s power utility companies, with Eskom[1] being a notable example. Years of mismanagement and mounting debt have left the utility struggling to allocate resources for critical upgrades. Without adequate funding, long-term projects aimed at stabilizing the grid remain stalled.

3. Uneven Distribution of Energy Resources

Energy resources in South Africa are geographically concentrated, with coal mines and generation facilities primarily located in specific provinces. This creates bottlenecks in distribution, where some areas face chronic shortages while others enjoy a surplus. Transporting energy over long distances exacerbates infrastructure strain and inefficiencies.

4. Electricity Theft and Illegal Connections

Unauthorized connections to the grid are a widespread issue in South Africa, particularly in informal settlements. Electricity theft not only reduces the available supply for paying consumers but also causes voltage instability. This illegal activity overloads transformers and distribution lines, which accelerates their wear and tear.

5. Lagging Power Market Development

South Africa’s power market has been slow to diversify. The dominance of coal-based energy has delayed the employment of renewable sources like solar and wind. Regulatory hurdles and lengthy approval processes further hinder private sector participation in energy production, leaving the grid overly dependent on a centralized and outdated model.

Impact of Grid Instability on Industrial Development in South Africa

The unstable grid is disrupting the economy of South Africa by bringing the country’s industrial sector to its knees. Here is how the electricity problems are hindering the country's industrial boom.

1. Production Constraints and Declining Market Competitiveness

Frequent power outages in South Africa disrupt manufacturing processes, which results in decreased output and missed deadlines. This unpredictability hampers the ability of South African industries to compete effectively in both domestic and international markets. For instance, in 2021, planned power cuts reduced the GDP growth of the country by almost three percentage points, with nearly 350,000 people losing their jobs[2]. Similarly, in 2023, the South African Reserve Bank estimated that these power outages reduced the country's GDP growth by approximately 1.8 percentage points[3].

2. Increased Costs

The instability of the power supply forces businesses to invest in supplementary energy solutions, like diesel generators, which significantly raise operational expenses. Additionally, the need for overtime work to compensate for production losses during outages leads to higher labor costs. Between 2007 and 2020, average electricity tariffs increased by 460%, which further strained industrial budgets[4].

3. Deterioration of Investment Environment

Persistent energy challenges erode investor confidence, as reliable infrastructure is a key consideration for investment decisions. The ongoing power crisis has reduced the potential size of South Africa's economy by approximately 20% since 2007, deterring both domestic and foreign investments[4]

How ATESS Efficient Energy Storage System Improves Power Supply Stability

1. Overview of ATESS Efficient Energy Storage System

To combat the power challenges faced by industries in South Africa, ATESS efficient energy storage provides a reliable solution. Here is how this efficient energy storage proves beneficial in two common industrial setups:

• Grid-Connected Mode: When the grid is functional, ATESS advanced energy solutions efficiently balance energy from solar panels, batteries, and the grid itself. The system dynamically adjusts power distribution based on real-time load demands. This approach not only optimizes energy use but also reduces dependence on expensive grid electricity during peak hours.

• Off-Grid Mode: During outages, the ATESS efficient energy storage takes charge by seamlessly switching between solar energy, battery reserves, and backup generators. This ensures a continuous power supply without interruptions. The system's ability to alternate power sources improves emergency response capabilities and reduces reliance on traditional grid infrastructure.

2. ATESS Efficient Energy Storage Products

To address varying industrial needs, ATESS offers high-performing battery and inverter solutions tailored for different scales of operation:

(1) Battery Systems: BR172R/186R/200R/215R

These indoor battery cabinets are equipped with IP20 protection, advanced lithium-ion batteries, and a self-developed three-level Battery Management System (BMS) for comprehensive safety. Its top features include:

• High energy density (166Wh/kg) for efficient energy storage.

• Long lifespan with over 6,000 charge-discharge cycles.

• Modular design for ease of maintenance and flexibility.

• Rated energy capacities range from 172kWh to 215kWh, catering to businesses with substantial energy demands.

  
  

(2) Battery Inverters: PCS100/250/500/630

Designed for high-power applications, these inverters are suitable for both AC and DC coupling in off-grid and hybrid energy storage systems. Key features include:

• Power outputs range from 100kW to 630kW per unit, scalable by paralleling multiple units.

• Seamless transition (≤10ms) between on-grid and off-grid modes, preventing operational downtime.

• Enhanced system stability with built-in redundancy functions to maintain performance even if one unit fails.

• Support for remote generator control through dry contact output.

  
  

Case Sharing

The Lucky Star Meat Cannery, operated by Oceana Group on South Africa's West Coast, exemplifies how advanced and efficient energy storage solutions can revolutionize industrial operations amidst grid instability. Faced with frequent power outages, Oceana Group invested $1.79 million in renewable energy, collaborating with ATESS to implement a 500 kW rooftop solar array, a 2.5 MW lithium iron phosphate (LiFePO4) battery system, dual ATESS PCS630 inverters, and two ATESS RTF600 rectifier cabinets. This setup allows the cannery to operate perfectly, even during outages. The system ensures grid independence, enabling uninterrupted production and stable energy while cutting carbon emissions by approximately 2,873 tons annually.

Conclusion

South Africa's industrial sector is grappling with a severe electricity crisis, which leads to production constraints, increased costs, and a deteriorated investment environment, undermining its economic growth and global competitiveness.

ATESS efficient energy storage systems can provide a reliable power supply, efficiently reducing dependence on the unstable grid and ensuring continuous operations even during outages. For factory owners and industrialists in South Africa, it is imperative to reach us  for a detailed consultation and assessment of your factory's energy needs.

Reference

[1]. Available at:

https://www.iol.co.za/business-report/economy/eskom-faces-scrutiny-over-financial-viability-as-auditor-general-raises-alarm-b3ef02c2-e732-4ec0-9ca6-1bfed91ca960

[2]. Available at:

https://www.up.ac.za/news/post_3061018-up-expert-opinion-south-africas-economic-growth-affected-by-mismatch-of-electricity-supply-and-demand

[3]. Available at: 

https://codera.co.za/estimates-of-the-cost-of-load-shedding-in-sa/

[4]. Available at: 

https://en.*********.org/wiki/South_African_energy_crisis