| Summary: | South Africa is currently experiencing electricity load constraints during peak, standard and off-peak hours. The electricity utility, Eskom, has to implement frequent loadshedding to prevent a total blackout of the electrical grid. These load constraints are continuing to affect the country’s ability to sustain electricity supply. The investment model presented in this study analyzes the investment scenario, which demonstrates the economic benefits of the Battery Energy-Storage System (BESS). The primary focus of this study is to analyse the grid-load profile by assessing three applications: peak-load shaving, load-levelling and maintenance-deferral in different market segments. The total required BESS capacity is attained by combining the required capacity from three BESS applications that are used to develop an investment case. The secondary focus is to develop an investment case and to analyse the economic benefits by evaluating five variables using the Discounted Cash-Flow (DCF) model: Net Present Value (NPV), Internal Rate of Return (IRR), cash flow, Return on Investment (ROI) and payback period. The final expected output results of the study are the investment model used to demonstrate the economic benefits of BESS. These are identified by exploring three BESS applications analysed with the data obtained from the national grid-load profile to assess the grid behaviour and the need to introduce BESS. The results of the study identified the viability of investing in BESS.
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