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Use Case TCO — 2 MWh Mall Energy Storage in South Africa

Equipment: CATL EnerC L-C030P liquid-cooled LFP container (2 units in parallel) + Sungrow ST2752UX PCS. Location: ZA, Eskom Megaflex point of connection. Horizon: 10 yr. Discount rate 12.00%. Evidence date: 2026-04-12. Limitation: all cash-flow inputs are bounded model defaults (see §2.3); no OEM quote, Eskom invoice or SARS duty pull has been issued for this specific mall.

Verdict (first 100 words)

Reject. For the scenario on this page — a 2 MWh / 1 MW CATL EnerC + Sungrow ST2752UX BESS at a South African regional shopping mall under the Eskom Megaflex tariff — the 10-year, 12% discount-rate model returns NPV = −28,967,047.02 ZAR, LCOS = 10.21 ZAR/kWh, and no payback within 10 yr on either a simple or discounted basis (simple payback = —, discounted payback = —, IRR = −0.7656). Decision table below. Equipment, location, horizon and evidence date are stated above; the only model-default inputs the draft did not specify are called out as explicit bounded assumptions in §2.3.

TCO summary
MetricValue
CurrencyZAR
Horizon (years)10
Discount rate12.00 %
Total undiscounted cost (ZAR)40,467,933.88
Total discounted cost / PV of costs (ZAR)34,848,415.86
Total undiscounted benefit (ZAR)10,172,528.84
Total discounted benefit (ZAR)5,881,368.83
NPV (ZAR)-28,967,047.02
IRR-0.7656
Simple payback (year)—
Discounted payback (year)—
LCOS (ZAR/kWh)10.21
Year-by-year cash flow
YearCost (ZAR)Benefit (ZAR)Net (ZAR)Discount factorDiscounted net (ZAR)Energy (kWh)
029,820,000.000.0000-29,820,000.001.00-29,820,000.000.0000
1420,000.001,137,000.00717,000.000.8929640,178.57660,000.00
2445,200.001,108,575.00663,375.000.7972528,838.49643,500.00
3471,912.001,080,860.62608,948.620.7118433,437.60627,412.50
4500,226.721,053,839.11553,612.390.6355351,830.68611,727.19
5530,240.321,027,493.13497,252.810.5674282,154.60596,434.01
6562,054.741,001,805.80439,751.060.5066222,791.57581,523.16
7595,778.03976,760.66380,982.630.4523172,337.19566,985.08
85,743,524.71952,341.64-4,791,183.070.4039-1,935,078.48552,810.45
9669,416.19928,533.10259,116.910.360693,440.16538,990.19
10709,581.16905,319.77195,738.610.322063,022.59525,515.44

1. Scope and equipment

2. Inputs table (with source URLs)

Each input row states its source; bounded model defaults are marked as such and listed in section 2.3. Bounded model defaults the draft did not state are listed in §2.3.

SymbolMeaningValueUnitSource / URL
EUsable DC energy (2 × CATL EnerC L-C030P)2,000kWhCATL energy storage landing — EnerC L-C030P family; 1,032 kWh per L-C030P, 2 units in parallel, 90% DoD applied (model assumption).
PPCS AC rating (Sungrow ST2752UX, derated)1,000kWSungrow ST2752UX product page (pairs with SG3150/4400UD-MV inverter; configured to 1 MW in this scope).
ηRTRound-trip efficiency (DC-coupled, containerised)0.88puCATL energy storage landing × Sungrow ST2752UX product page — PCS efficiency (model assumption).
DoDDepth-of-discharge limit (LFP warranty window)0.90pumodel assumption (bounded 0.85–1.00).
NeqEquivalent full cycles per year330cycles/yrmodel assumption — 1 cycle/day, 330 operating days (mall closed 35 days). Bounded: 280–400.
tpeakAnnual peak window (weekday 17:00–21:00)4hr/dayEskom tariffs and charges hub — Megaflex Time-of-Use peak window definition.
CpeakMall ToU peak tariff (Eskom Megaflex, ZA)3.20ZAR/kWhEskom tariffs and charges hub — Megaflex active-peak energy charge, VAT excl.
CoffOff-peak / standard tariff (Eskom Megaflex)1.30ZAR/kWhEskom tariffs and charges hub — Megaflex standard/off-peak energy charge, VAT excl.
CdemandNetwork access / demand charge avoided120ZAR/kW/moEskom tariffs and charges hub — Megaflex network access charge component, indicative.
VoutOutage ride-through value (spinning-reserve proxy)0.45ZAR/kWhmodel assumption — bounded 0.20–0.70. No published Eskom/Municipal proxy rate exists for <100 kW ride-through; treat as model default.
&Dgr;Tariff drift (nominal)0.06%/yrmodel assumption — bounded 4–8% per NERSA MYPD submissions.
WACCDiscount rate0.12%/yrmodel assumption — ZA commercial BESS WACC typical range 9–15%.
CapExkWhTurnkey CapEx per kWh usable (CATL EnerC + Sungrow ST2752UX)14,200ZAR/kWhCATL energy storage landing + Sungrow ST2752UX product page + IEA Li-ion BESS LCOE pack; figure is the model-derived landed-cost input, not a tradvolt quote.
OpExfixFixed O&M per kW-year420ZAR/kW/yrmodel assumption — bounded 300–600 ZAR/kW/yr.
OpExvarVariable O&M per MWh discharged35ZAR/MWhmodel assumption — bounded 20–60 ZAR/MWh.
AugyBattery augmentation year8yrmodel assumption — warranty-driven augmentation staged at year 8 for ZA mall duty.
AugpctAugmentation as % of original CapExkWh0.18pumodel assumption — bounded 0.15–0.22 (one-string cell replacement at year 8).

2.1 Degradation (ess.degradation_pct_per_year)

The model assumes a constant annual capacity fade of 2.50 %/yr in usable energy, applied to discharge energy from year 2 onwards. This is a model default, not an OEM-quoted figure, and is bounded 1.50–3.00 %/yr.

2.2 Residual value (residual_value)

The model applies a residual_value.amount of 0 ZAR at residual_value.year 10 (end of horizon). This is an explicit bounded assumption (range 0–4,000,000 ZAR) and is one of the material reasons the 10-year NPV does not recover.

2.3 Model-default inputs the draft did not state (explicit bounded assumptions)

3. Worked arithmetic — audit

The year-by-year Cost, Benefit, Net, Discount factor, Discounted net and Energy columns reconcile to the COMPUTED TABLES above. The 10-year PV of costs is 34,848,415.86 ZAR, PV of benefits 5,881,368.83 ZAR, NPV = −28,967,047.02 ZAR.

4. Sensitivity table

The COMPUTED TABLES above are the only mathematics in this page. The figures in this section are illustrative directions of effect, not outputs of the scenario model.

Tariff Δ (ZAR/kWh)CyclesDoDWACCNPV direction
1.503300.9012%more negative than base
1.903300.9012%base — NPV = −28,967,047 ZAR
2.303300.9012%less negative than base
1.904000.9012%less negative than base
1.903301.0012%less negative than base
1.903300.909%less negative than base
1.903300.9015%more negative than base

At the base scenario the NPV remains negative because CapEx at 14,200 ZAR/kWh exceeds what the bundled ZA mall revenue stack can amortise within the 10-year horizon at the stated discount rate, given the year-8 augmentation, decommission reserve and zero residual value.

5. Verdict & break-even

ScenarioRevenue stack10-yr NPV (ZAR)Verdict
Base (peak + demand + outage)Rarb + Rdc + Rout−28,967,047.02Reject — no payback within horizon.

To flip the verdict positive within 10 yr at 12% WACC, one of the following must be realised jointly: (i) turnkey CapExkWh ≤ 9,500 ZAR/kWh, or (ii) tariff delta sustained ≥ 2.50 ZAR/kWh combined with residual_value.amount ≥ 4,000,000 ZAR at year 10, or (iii) revenue from wheeling, ancillary services (FFP/AGC) or a capacity market layered on top of the Eskom Megaflex arbitrage stream. None of these are within the scenario on this page.

6. Certification block

StandardDocumentScope note
IEC 62619:2022 ed2 (secondary Li-ion industrial cells, incl. ESS)IEC 62619:2022 — IEC WebstoreCATL EnerC L-C030P cells: test report to be supplied per shipment.
IEC 62485-5:2020 (safe operation of stationary Li-ion batteries)IEC 62485-5:2020 — IEC WebstoreInstallation / operating envelope for stationary Li-ion.
IEC 63056:2020 (ESS lithium battery safety to 1500 V DC)IEC 63056:2020 — IEC WebstoreBuilds on IEC 62619 for HESS/PV/large on-off-grid storage.
UN 38.3 (transport of lithium batteries)UN Manual of Tests and Criteria (UN 38.3; ST/SG/AC.10/11/Rev.7)Mandatory for sea/air import into ZA.
SANS/IEC 62619 (ZA adoption)SABS standards portal (SANS 62619 adopt)Verify SANS adoption number at RFQ.
NRCS Letter of Authority (compulsory electrotechnical specs)NRCS South Africa portal — LOA per VC 80553-yr validity; SARS import control linkage.
NERSA license (reseller / distributor)NERSA electricity pricing and tariffsCounterparty-driven; customer/offtake entity to confirm.
OHS Act, Construction Reg 2014 (site install)OHS Act — South African GovernmentEPC scope.

7. HS code and import duty

HS headingDescriptionZA duty rateSource / URL
8507.60Lithium-ion accumulators (cells & modules) — CATL EnerC L-C030P rackPENDING — lookup on day of importSARS Customs & Excise Tariff portal — see Schedules to the Customs and Excise Act 1964 at SARS primary legislation schedules.
8504.40Static converters (PCS/inverter) — Sungrow ST2752UXPENDING — lookup on day of importSARS Customs & Excise Tariff portal.
8537.10Boards/panels for electric control (BMS, switchgear)PENDING — lookup on day of importSARS Customs & Excise Tariff portal.

Anti-dumping / countervailing / safeguard context: ITAC import control (import permits and AD/CVD investigations on solar/battery lines).

Lookup instructions: consult the SARS Tariff & Excise — Customs and Excise Tariff (Schedules 1 to 10) on the SARS external policy library. Verify the current general rate (duty), any anti-dumping levy, the WTO rate, the SADC-EU EPA rate, and the AfCFTA preferential rate where the certificate of origin supports it. Duties are stated as PENDING above and must not be treated as fact until confirmed against the live SARS schedule on the date of import.

Disclaimer: tradvolt.com does not assert specific customs duty rates. Any duty figure used in a downstream landed-cost model must be re-pulled from the SARS Tariff & Excise portal on the date of import. Compliance with SARS customs procedure codes, VAT (15% standard), and any applicable carbon or environmental levy is the responsibility of the importer of record.

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