Section 34 Determination Allocates 9,600 MW for Gas and Battery Storage

Posted 07 October 2026 Written by Acts Online
Category Energy & Electricity Law

Brought to you by SAnews: In terms of section 34 of the Electricity Regulation Act, No. 4 of 2006, the Minister of Electricity and Energy has issued a new determination allocating 9,600 MW of new generation and storage capacity across the 2026—2037 planning horizon.

The determination prioritises two dispatchable technology allocations designed to alleviate transmission grid congestion and prevent the financial risk of renewable curtailment:

  • Battery Energy Storage Systems (BESS): A proposed 4,600 MW allocation designed to charge from surplus generation during low-demand periods and discharge during evening peak periods, providing rapid frequency balancing and grid support.
  • Gas-to-Power: A proposed 5,000 MW allocation designated for dispatchable baseload and peaking capacity to respond to renewable intermittency.

Under the statutory framework, procurement guidelines will align with System Operator technical specifications, including enforceable availability parameters, charging cycles, and performance obligations. The gas-to-power procurement criteria will specifically assess start-up times, ramping capability, minimum generation constraints, port and pipeline infrastructure integration, delivered gas pricing, and grid interconnection feasibility.

The procurement framework will also enforce mandatory socio-economic development commitments, including local content requirements for engineering, manufacturing, and construction, alongside broad-based energy ownership criteria.

What this means for you, your business, or your clients

  • For yourself: Energy law and corporate finance practitioners must monitor the forthcoming Government Gazette notices for the formal Section 34 Ministerial Determination and subsequent request for proposals (RFPs) issued by the IPP Office.
  • For your business: Engineering, procurement, construction (EPC) contractors and infrastructure funds must structure joint ventures to satisfy local manufacturing, skills development, and ownership thresholds prior to bid submission deadlines.
  • For your clients: Independent power producers (IPPs) and industrial off-takers face revised curtailment mitigation rules, requiring review of existing power purchase agreements (PPAs) and grid connection agreements against new System Operator dispatch directives.

Originally published at https://www.sanews.gov.za/south-africa/south-africa-prioritises-gas-and-battery-storage

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