Independent power company Globeleq and its project partner, energy supplier African Rainbow Energy, have reached financial close on the 153 MW/612 MWh Red Sands battery energy storage system (BESS) in South Africa.

The project – which is located near Upington, Northern Cape – will span about 5 ha and supply electricity to State-owned electricity utility Eskom’s subsidiary National Transmission Company South Africa (NTCSA), under a 15-year power purchase agreement.

Additionally, the project includes significant upgrades to Eskom and NTCSA’s grid infrastructure, helping to ease transmission and distribution congestion in the region.

“Financial close on Red Sands BESS is a pivotal step in delivering Africa’s largest standalone battery storage project,” stated Globeleq CEO Jonathan Hoffman.

He added that, with strong backing from financial services providers Absa and Standard Bank, in addition to support from the company’s public and private partners, Globeleq and African Rainbow Energy are advancing a more resilient, low-carbon power system.

This project, he noted, builds on Globeleq’s renewable-energy leadership, as well as reflects its commitment to sustainable growth across the continent.

According to Globeleq, the formal signing of the project agreements with the Department of Electricity and Energy and NTCSA took place on the sidelines of the 2025 Africa Energy Forum in Cape Town.

The agreements were concluded by the Electricity and Energy Minister Dr Kgosientsho Ramokgopa, NTCSA interim CEO Segomoco Scheppers and Hoffman.

Moreover, the project is being backed by about R5.4-billion – raised by Globeleq and African Rainbow Energy – in debt financing from Absa and Standard Bank.

In addition, State-owned Chinese conglomerate China Energy Engineering Corporation has been selected as the engineering and procurement contractor, with the BESS technology and long-term service agreement provided by inverter and energy storage system solutions provider Sungrow.

The construction of the project is expected to generate about 250 jobs, with 80 permanent roles expected once operational. The project will emphasise local employment and skills development.

African Rainbow Energy CEO Brian Dames highlighted the broader significance of this investment, stating that “reaching financial close on Red Sands is a proud moment in our partnership with Globeleq”.

He added that, with the support of Absa and Standard Bank, the project is one step closer to achieving its objective of using modern and renewable technologies to provide affordable electricity in South Africa and on the African continent, while uplifting communities.

This investment will also mark the substantial progress of the R3-billion commitment that African Rainbow Energy made as a part of the South African Investment Drive.

Absa resource and project finance senior banker Johan Koorts expressed that the financial organisation was proud to have provided financing and corporate banking solutions to Globeleq and African Rainbow Energy for the storage project.

“This transaction demonstrates Absa’s commitment to the continent’s energy transition goals and will support the reliability and efficiency of electricity supply in South Africa,” stated Koorts.

Additionally, Standard Bank energy and infrastructure project finance head Sherrill Byrne stated that, as the biggest bank in Africa by assets, Standard Bank takes pride in its partnership with Globeleq and African Rainbow Energy to further the development of “Africa’s most significant standalone BESS facility”.

Globeleq has led the development and financing process and will manage the project during construction and into operation through its wholly-owned subsidiary, Globeleq South Africa Management Services.

Though the project was originally developed by renewable energy project development company African Green Ventures, it was acquired by Globeleq in 2023.

Once operational, Red Sands BESS will be Globeleq’s second utility-scale storage project, complementing its existing portfolio of 13 solar, wind and hybrid PV-plus-storage plants across South Africa, Mozambique, Kenya and Egypt, as well as the Menengai geothermal plant that is currently under construction in Kenya.