from DION HENRICK in Cape Town
Western Cape Bureau
CAPE TOWN, (CAJ News) – AN investment of more than R7 billion (US$374,4 million) on three battery energy storage projects is anticipated to deliver cost-effective and efficient storage capacity to South Africa’s troubled electricity grid.
A consortium consisting of Mulilo, a South African independent power producer majority owned by Copenhagen Infrastructure Partners (CIP) through its Growth Markets Fund and EDF Renewables, reports it has been selected as preferred bidder for the projects.
The projects are namely, Oasis Aggeneis, Oasis Mookodi and Oasis Nieuwehoop.
Construction is expected to commence in mid-2024 and when completed, the three projects are forecast to dispatch electricity under 15-year power purchase agreements to South Africa.
The consortium believes it holds global experience with battery energy storage systems and local market expertise.
Robert Helms, partner at CIP, said securing preferred bidder status for the majority of the procured capacity in South Africa’s first public battery storage tender together with EDF marks a significant step in the accelerated growth of Mulilo.
“We commend the South African government’s strong commitment to the rapid buildout of battery energy storage, a key focus technology for Mulilo,” he said.
“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 a total of five projects South Africa’s first Battery Energy Storage Procurement Programme.
Jan Oberholzer, Chairman of the Board in Mulilo, said this was a milestone 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.
Founded in 2012, CIP is ranked the world’s largest dedicated fund manager within greenfield renewable energy investments and a global leader in offshore wind.
– CAJ News