Name of the Project
Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) – Bid Window 2 (BW2).

Location
North West, South Africa.

Project Owner/s
Department of Electricity and Energy, and the Independent Power Producers (IPP) Office.

Project Description
The request for proposals for the BESIPPPP – BW2 was released in December 2023, and calls for 615 MW/2 460 MWh battery energy storage capacity.

Eight storage facilities in closest proximity to dedicated substations – Mercury, Carmel, Hermes, Ngwedi, Midas, Marang, Bighorn and Ararat, in the North West supply area – will be procured.

Under BW2, the IPP Office is aiming to procure 77 MW of battery energy storage systems (BESS) at every substation, each with four hours of storage.

A minimum availability of 95% over 8 760 hours per contracted year is also stipulated and the facilities will be expected to provide instantaneous, regulating and supplementary reserves.

In December 2024, the Department of Electricity and Energy announced the eight preferred bids:

• Oasis Ararat BESS (77 MW), in North West – EDF Renewables;
• Gainfar BESS (77 MW), in the Free State – AMEA;
• Boitekong BESS (77 MW), in the Free State – AMEA;
• Welverdiend BESS (77 MW), in Gauteng – Mulilo;
• Leeuwpoort BESS (77 MW), in Gauteng – Mulilo;
• Rooikoppies BESS (77 MW), in North West – Mulilo;
• Hartbeesfontein BESS (77 MW), in North West – Mulilo; and
• Mulilo Mercury BESS (77 MW), in the Free State – Mulilo.

Potential Job Creation
The eight BESIPPPP preferred bidders have committed to 41% black shareholding in the IPP project companies, up to 27% shareholding by construction contractors and up to 36% in operations contractors.

The preferred bidders have further committed to creating more than 1 500 job opportunities for local citizens during the construction and operation of the sites, with 31%, or R5-billion, of the total project costs having been dedicated to local-content spend during the construction and operational phases of the projects.

In addition, the preferred bidders have undertaken to invest R1.8-billion on black enterprise procurement, R1.4-billion in broad-based black economic-empowerment (B-BBEEE) procurement on qualifying small enterprises and exempt micro-enterprises, and an additional R659-milliom in B-BBEEE procurement, specifically black women.

The preferred bidders in this programme have also committed to spend R316-million on supplier development, skills development and socioeconomic development initiatives over the life span of the projects.

Capital Expenditure
R12.8-billion.

Planned Start/End Date
Not stated.

Latest Developments
The BW2 drew 31 bid responses during August 2024, with selected projects valued at R12.8-billion.

Electricity and Energy Minister Dr Kgosientsho Ramokgopa noted in December that BW2 had a marked increase in the number of bids received, compared with the first bid window, which resulted in a 35% decrease in the average evaluation price, compared with BW1 prices.

Key Contracts, Suppliers and Consultants
EDF Renewables (Oasis); AMEA Power (Gainfar and Boitekong); and Mulilo (Welverdiend, Leeuwpoort, Rooikoppies, Hartbeesfontein and Mulilo Mercury).

Contact Details for Project Information
Independent Power Producers (IPP) Office, email IPP Office, email query@ipp-storage.co.za.