First two private utility-scale battery projects reach commercial close

Two projects selected as preferred bidders under South Africa’s inaugural Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) bidding round have advanced to commercial close and will now enter construction.

The projects, named Mogobe BESS and Oasis Mookodi, have a combined capacity of 180 MW/720 MWh, and will be connected to transmission substations located near to Kathu in the Northern Cape and Vryburg in the North West province respectively.

The battery storage projects are expected to enter into commercial operation in September 2026 and have a combined investment value of R5.3-billion.

Mogobe BESS is being developed by a consortium led by Scatec, alongside Perpetua and a local community trust, while Oasis Mookodi will be constructed by a consortium led by EDF, together with Mulilo, Pele, Gibb Crede and a community trust.

A signing ceremony for what are South Africa’s first standalone grid-scale, private-sector battery projects procured under the government’s BESIPPPP was held in Cape Town on October 16 and attended by Electricity and Energy Minister Dr Kgosientsho Ramokgopa.

The construction phase, which is scheduled for the coming 24 months, is expected to create 217 jobs.

The projects have committed to spending 11% and 20% of total costs, respectively, on local content during construction, and 20% and 26% of total costs on local-content, respectively, during operations.

Once in operation, the projects will store energy during periods of low demand and release the electricity during peak demand periods, or when needed to stabilise the grid.

The installations will also offer ancillary services to the system operator and allow for more renewable energy to be integrated onto the grid.

The Independent Power Producer Office also announced that two of the remaining three projects selected as preferred bidders during Bid Window 1 were expected to reach commercial close by the end of November, while the fifth bidder is preparing for commercial close in early 2025.

Meanwhile, the announcement of preferred bidders from BESIPPPP Bid Window 2, where 615 MW/2 460 MWh is being procured, will be made within weeks, while bid submissions under Bid Window 3, where a combined capacity of 616 MW/2 464 MWh is being procured, is scheduled for the end of October.

In a statement, EDF said the 77 MW/ 308MWh Oasis Mookodi project formed part of a portfolio of three projects bid by the Oasis consortium of EDF, Mulilo, Pele Energy Group and Gibb-Crede, with local community trusts.

The other two – Oasis Aggeneis (77 MW/ 308MWh), and Oasis Nieuwehoop (103 MW/412 MWh), also located in the Northern Cape – are expected to reach commercial close this year.