Name of the Project
Battery Energy Storage Independent Power Procurement Programme (BESIPPPP) – Bid Window 1 (BW1).

Location
South Africa.

Project Owner/s
Department of Energy (DME) and Independent Power Producer (IPP)Office.

Project Description
The site-specific BESIPPPP – BW1 is designed to facilitate the procurement of up to 513 MW, or at least 2 052 MWh, of battery storage across five specified substation sites, with only one preferred bidder per site.

The five bidders are: 

•    Oasis Aggeneis (77 MW), substation Aggeneis, Northern Cape – EDF Development Mulilo and black economic-empowerment (BEE) partner Pele Energy group & Gibb-Crede;
•    Mogobe BESS (103 MW), substation Ferrum, Northern Cape – Scatec Africa and BEE partner Perpetua Holdings;
•    Oasis Mookodi (77 MW), substation Mookodi, North West – EDF Development Mulilo and Pele, Gibb Crede and a community trust;
•    Oasis Nieuwehoop (103 MW), substation Nieuwehoopat, Northern Cape – EDF Development Mulilo and BEE partner Pele Energy group & Gibb-Crede;
•    Red Sands BESS (153 MW), substation Garona, Northern Cape – AGV Projects.

All the BESS projects have four hours of storage.

Potential Job Creation
The Mogobe and Oasis Mookodi BESS projects are expected to create 217 jobs. The projects have committed to spending 11% and 20% of total costs respectively, on local content during construction, and 20% and 26% of total costs on local-content respectively, during operations.

Capital Expenditure
R50-billion overall.

The Mogobe and Oasis Mookodi BESS projects have a combined investment value of R5.3-billion.

Planned Start/End Date
The Mogobe and Oasis Mookodi BESS projects are expected to enter into commercial operation in September 2026.

Latest Developments
The Mogobe and Oasis Mookodi BESS projects have advanced to financial close and will now enter construction.

A signing ceremony for South Africa’s first standalone grid-scale, private-sector battery projects, procured under government’s BESIPPPP, was held in Cape Town on October 16 and attended by Electricity and Energy Minister Dr Kgosientsho Ramokgopa.

Two of the remaining three projects selected as preferred bidders during BW 1 are expected to reach commercial close by the end of November, while the fifth bidder is preparing for commercial close in early 2025.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
DME, tel + 27 12 406 7788 or email info@energy.gov.za.
IPP Office, email query@ipp-storage.co.za.