South Africa’s first public battery storage tender awards 1GWh in BESS projects

South Africa’s first public battery storage tender has awarded preferred bidder status to a consortium of CIP-owned Mulilo and renewables major EDF for three battery projects totalling 257MW/1,028MWh.

Mulilo, a South African independent power producer majority owned by Danish investment firm Copenhagen Infrastructure Partners (CIP) and EDF will partner on the three projects.

A total of five projects were awarded under South Africa’s first Battery Energy Storage Procurement Programme by the Department of Mineral Resources and Energy.

The three South African projects include:

• Oasis Aggeneis, located in the Northern Cape
• Oasis Mookodi, located in the North West
• Oasis Nieuwehoop, located in the Northern Cape

The consortium holds global experience with battery energy storage systems and local market expertise, ensuring that the three facilities will deliver cost-effective and efficient storage capacity to South Africa’s electricity grid.

The total cost of the projects is estimated to be more than R7 billion ($375 million), and construction is expected to commence in mid-2024.

When completed, the three projects will dispatch electricity under 15-year power purchase agreements to South Africa.

Robert Helms, partner at CIP, commented in a release: “Securing preferred bidder status for the majority of the procured capacity in South Africa’s first public battery storage tender together with EDF marks a significant step in the accelerated growth journey of Mulilo.”

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Alleviating an energy crisis

2023 saw South Africa experience new records of rolling blackouts as the country continues to grapples with an energy crisis.

In a study from the International Institute for Sustainable Development (IISD), it is suggested that plans to deploy energy storage systems, including batteries and pumped hydro, could however significantly help to balance electricity supply and demand in the country.

The report from the IISD also found that energy storage is already providing relief from loadshedding and grid batteries are identified as an immediate strategic priority.

Added Helms: “We commend the South African government’s strong commitment to the rapid buildout of battery energy storage, a key focus technology for Mulilo. With the announcement, we are proud for Mulilo to continue its positive contribution to the country’s energy security, socio-economic growth, and green transition.”

“This achievement is an important and significant milestone for Mulilo. I am very proud of the entire team that is currently outperforming our business plans and look forward, together with our partners, to the successful execution of these projects,” said Jan Oberholzer, chairman of the board in Mulilo.

“We remain committed playing our important part ensuring sustainable electricity supply needed for economic growth and the betterment in the lives of the 61 million people in our beautiful country.”