Unlocking potential: Battery-based energy storage systems for developing economies

Edited by: VENNELA MANNAVA1 AND AUDREY BERTIN2

The burgeoning adoption of Battery-based Energy Storage Systems (BESS) across global markets underscores their pivotal role in enhancing grid support and unlocking new revenue streams, yet their application within developing economies remains nascent. This article delves into the strategic deployment of BESS within the Global South, spotlighting their value across diverse grid scenarios influenced by geographic, infrastructural, and economic variances. Through a lens focused on India, South Africa, and Malawi, this article juxtaposes the energy strategies of emerging markets against their developed counterparts. It reveals a nuanced landscape where India and South Africa, currently heavily reliant on coal, aspire to become greener without destabilizing energy prices, whereas Malawi views BESS as a beacon for grid resilience against frequent blackouts. The investigation further explores the techno-economic feasibility of BESS in emerging markets, highlighting the imperative for localized adaptation of storage solutions originally tailored for applications in developed countries to circumvent market failures and information asymmetry. Through case studies, the paper articulates the distinct energy challenges and BESS potentials in India and South Africa while emphasizing the transformative role of BESS in fostering grid stability and renewable integration in Malawi.

Highlights

1. While the use of Battery-based Energy Storage Systems (BESS) to support grids is growing globally, these systems are still in their infancy in the Global South.

2. With varying geography, grid infrastructure, size of the grid, and local economic conditions across the Global South, it is important to determine where BESS can add the most value to the grid.

3. In emerging markets, contrasts and similarities in application exist; for instance, India and South Africa are looking to BESS to help transition from coal, while Malawi sees BESS as a means to enhance grid resilience against blackouts.

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