Multimillion-dollar SA energy storage project set to commence
An investment of more than $374.4 million in three battery energy storage projects is expected to provide cost-effective and efficient storage capacity to South Africa's problematic electricity grid.
Mulilo, a South African independent power producer majority owned by Copenhagen Infrastructure Partners (CIP) through its Growth Markets Fund, and EDF Renewables have announced that they have been selected as the preferred bidder for the projects.
The projects are Oasis Aggeneis, Oasis Mookodi, and Oasis Nieuwehoop.
Construction is anticipated to begin in mid-2024, and when completed , the three projects are expected to supply electricity to South Africa under 15-year power purchase agreements.
The consortium thinks it has global experience with battery energy storage devices as well as local market knowledge.
According to Robert Helms, partner at CIP, gaining preferred bidder status for the majority of the acquired capacity in South Africa's first public battery storage tender alongside EDF is a crucial step in Mulilo's accelerated growth.
"We commend the South African government's strong commitment to the rapid buildout of battery energy storage, a key focus technology for Mulilo," Helms added.
"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."
The Department of Mineral Resources and Energy has awarded five projects as part of South Africa's inaugural Battery Energy Storage Procurement Programme.
Mulilo's chairman of the board, Jan Oberholzer, called this a watershed moment for the company.
"We remain committed to playing our important part in ensuring sustainable electricity supply needed for economic growth and the betterment in the lives of the 61 million people in our beautiful country," Oberholzer said.