South Africa announces two new grid-scale battery projects - Kgosientsho Ramokgopa — Energy minister Kgosientsho Ramokgopa. Image: GCIS

South Africa has added two grid-scale battery energy storage projects under bid window 1 of the Battery Energy Storage Independent Power Producer Procurement Programme – clumsily abbreviated as BESIPPPP – energy minister Kgosientsho Ramokgopa has announced.

Battery energy storage systems are important for maintaining grid stability outside of peak production hours by having additional energy available for despatch should it be needed.

“Following the signing of the agreements with these two additional projects South Africa has secured a total of 360MW/1 440MWh storage capacity under the country’s first grid-scale bid window,” Ramokgopa said in a statement.

Both projects – Oasis Aggeneis and Oasis Nieuwehoop – have been developed by EDF International in partnership with Mulilo Energy, Gibb-Crede, Pele Green Energy and an unnamed community trust. The projects will be located in the Northern Cape, contributing a total of 180MW/720MWh storage capacity to the national grid.

Oasis Aggeneis will be located at Aggeneis substation and have a total capacity of 77MW/308MWh. Oasis Nieuwehoop, on the other hand, will be located at Nieuwehoop substation close to Kenhardt and will have a total capacity of 103MW/412MWh. Construction of both projects is expected to take “no more than 24 months” with the storage capacity expected to be available to the grid by November 2026.

R4.7-billion investment

Ramokgopa said the two projects will attract a total investment of R4.7-billion, with South African entity participation at around 42.2%. Black ownership is at 40% for each project, respectively. Employment commitments by both projects add up to 487 job opportunities (measured in job years), 301 of which will be during construction and 186 during operation.

Four preferred bidders were announced under bid window one of BESIPPPP and all have reached commercial close, with a fifth currently under negotiation.