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Two more battery projects achieve financial close, next set of bidders to be announced within weeks

A group photo taken at the signing ceremony attended by Electricity and Energy Minister Dr Kgosientsho Ramokgopa, seated at centre

A group photo taken at the signing ceremony attended by Electricity and Energy Minister Dr Kgosientsho Ramokgopa, seated at centre

19th November 2024

By: Terence Creamer

Creamer Media Editor

     

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Two more battery storage projects selected as preferred bids under South Africa’s first public procurement bid window (BW1) for the technology have achieved commercial close.

The projects have a combined investment value of R4.7-billion and increase to 360 MW/1 440 MWh the amount of utility-scale storage capacity to have reached the milestone after two other projects reached financial close in mid-October.

The projects, the commercial-close documents for which were signed at a ceremony attended by Electricity and Energy Minister Dr Kgosientsho Ramokgopa on November 18, have been developed by EDF International in partnership with Mulilo, Gibb-Crede, Pele Green Energy, and a community trust.

They include the 77 MW/308 MWh Oasis Aggeneis, sited at the Aggeneis substation close to the town of Aggenys in the Northern Cape, and the 103 MW/412 MWh Oasis Nieuwehoop, which will be located at Nieuwehoop substation close to Kenhardt, also in the Northern Cape.

The same consortium is also constructing the 77 MW/308 MWh Oasis Mookodi project, which reached commercial close together with the Mogobe BESS project on October 17.

Mogobe BESS is being developed by a consortium led by Scatec, alongside Perpetua and a local community trust.

Project construction on the two additional projects is expected to take no more than 24 months and the storage capacity is expected to come online no later than November 2026. 

All four projects to have reached financial close were confirmed as preferred bidders on November 30, 2023, while a fifth project was appointed on March 28, 2024.

The Electricity and Energy Ministry reports that efforts are under way to have the fifth project reach commercial close in early 2025. 

A further two battery storage bid windows are currently under way, with BW2 for 615 MW/2 460 MWh under evaluation, and with the announcement of preferred bidders expected within the next few weeks.

The date for bid submissions for BW3 for 616 MW/2 464 MWh has been shifted to November 28. 

Edited by Creamer Media Reporter

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