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South Africa Invests in Energy Storage: Two Major Battery Projects Signed Under BESIPPPP

Published November 20, 2024
3 months ago

In a significant advancement toward enhancing its national power infrastructure, South Africa has officially moved forward with two major battery energy storage projects. Dr. Kgosientsho Ramokgopa, the Minister of Electricity and Energy, has signed project agreements marking the commercial close of two initiatives designated as preferred bidders under the inaugural Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 1.





The projects, developed in collaboration with EDF International and partners such as Mulilo, Gibb-Crede, Pele Green Energy, and a community trust, will be strategically located in South Africa's Northern Cape Province. Collectively, these initiatives will contribute 180 MW/720 MWh storage capacity to the national grid – split between Oasis Aggeneis and Oasis Nieuwehoop at 77MW/308MWh and 103MW/412MWh, respectively.


The Department of Electricity and Energy detailed that the Oasis Aggeneis will be situated near Aggenys at the Aggeneis Sub Station, and Oasis Nieuwehoop near Kenhardt at the Nieuwehoop Sub Station. The construction of these projects is expected to span no more than 24 months, with the operational activation slated for no later than November 2026.


In financial terms, these projects represent a significant economic investment valued at approximately R4.7 billion. They have achieved notable local participation and Black Economic Empowerment (BEE) ownership levels of 42.23% and 40%, respectively. Additionally, the projects pledge to generate 487 job opportunities for South Africans, which includes positions across the construction and operational phases.


Furthermore, the commitment to local content is robust, with plans to dedicate 20% of total project expenses towards local sourcing during both the construction and operational stages. Over their 15-year lifespan, more than R43 million is earmarked for community and economic development initiatives including skills development, supplier development, bursaries for Black students, enterprise development, and socio-economic advancements.


The importance of Battery Energy Storage Systems (BESS) was highlighted by the department, citing their critical role in balancing grid demands—storing energy during low demand periods and releasing it during peak times. This not only ensures grid stability but also facilitates the integration of renewable energy sources.


These developments are part of a broader strategy to harness modern technologies in bolstering the energy sector. Dr. Ramokgopa's ministry noted that, following the success of the first bid window, subsequent phases are already in progress, with evaluations for Bid Window 2 and preparations for Bid Window 3 well underway.


This move aligns with South Africa's ongoing efforts to transition towards a more sustainable and stable energy infrastructure, reflecting the government's commitment to not only enhancing energy security but also propelling the nation towards a greener future.


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