A consortium of Mulilo and EDF has been finalised as a preferred bidder for three battery energy storage projects. Mulilo is a South African independent power producer which is majority owned by CIP through its Growth Markets Fund I (CI GMF I). A total of five projects were awarded under South Africa’s first Battery Energy Storage Procurement Programme by the Department of Mineral Resources and Energy and the consortium won BESS projects totaling 257MW/1,028MWh of energy storage.
These three projects, Oasis Aggeneis, Oasis Mookodi and Oasis Nieuwehoop, will have 15-year PPAs to supply power to the grid controlled by TSO Eskom. Reportedly, the total cost of the projects is calculated to be around ZAR 7 billion and construction of the project is anticipated to begin in mid-2024.
Aggeneis and Mookodi will have a capacity of 77 MW each and Nieuwehoop will have a capacity of 103 MW. These BESS projects will have storage capability of four hours. Thus, Aggeneis and Mookodi will generate 308 MWh while Nieuwehoop will produce about 412 MWh.
REGlobal’s Views: South Africa has faced severe power supply issues and has now been taking steps to increase its renewables capacity that can slowly replace its aging coal-powered fleet. Along with renewables, the country is also planning to increase storage in its mix to improve its grid reliability and management and provide ancillary services.
