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Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has signed two project agreements and the commercial close of two projects appointed as preferred bidders under the first Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 1.
According to the Department of Electricity and Energy, the two projects secure “a total of 360 MW/1440 MWh storage capacity under the country’s first grid-scale bid window”.
“Both projects, developed by EDF International and their project partners, Mulilo, Gibb-Crede, Pele Green Energy, and a community trust, will be located in the Northern Cape Province and will contribute a total of 180 MW/720 MWh storage capacity on the national grid.
“Oasis Aggeneis, with a total capacity of 77MW/308MWh will be located at Aggeneis Sub Station close to the town of Aggenys. Oasis Nieuwehoop, with a capacity of 103MW/412MWh, will be located at Nieuwehoop Sub Station close to Kenhardt. Project construction is expected to take no more than 24 months and the storage capacity is expected to come online no later than November 2026,” the department said in a statement on Monday.
The two projects are expected to attract investment of some R4.7 billion with local entity participation of around 42.23% and Black Economic Empowerment (BEE) ownership of 40% achieved across both projects.
“In support of the current economic challenges that South Africa is facing, the two projects have committed a total of 487 job opportunities (measured in job years) for South Africans, which includes 301 jobs during construction and 186 jobs during operations.
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“The projects have committed to spending 20% of total project costs on local content during construction, and 20% on local content during operations.
“The projects have also made commitments of over R43 million over their 15-year lifetime, to be spent in areas such as Skills Development, Supplier Development, Bursaries for Black Students, Enterprise Development, and Socio-Economic Development initiatives,” the department explained.
Battery Energy Storage Systems (BESS)
The department explained that BESS technology has a critical role to play in “grid operation by storing energy during periods of less demand for electricity and releasing that energy when needed” – like during peak time.
“In addition, BESS provides grid stability through Ancillary Services for the System Operator. BESS further allows for more integration of renewable energy onto the grid,” it said.
To take advantage of this technology, at least four preferred bidders were announced in November last year with all four reaching commercial close.
“A further fifth project was appointed later [on] 28 March 2024, following value for money negotiations. This last project is finalising preparations and final conditions to reach commercial close in early 2025.
“A further two Battery Energy Storage bid windows [are] currently underway. Bid Window 2 is currently in evaluation phase with [a] bid announcement expected within the next few weeks. Bid submission for Bid Window 3 is planned,” the department concluded.
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