Independent power producers (IPPs) Scatec ASA and Mulilo Energy have been announced as the preferred bidders of five projects under round three of South Africa’s battery energy storage independent power producers procurement programme (BESIPPPP).
The initiative is aimed at enhancing SA’s power system by providing essential ancillary services and increasing grid capacity through energy storage.
In 2020, the Department of Mineral Resources and Energy established a target to procure 28GW of new generation capacity through the IPPPP.
To date, eight bid windows have been released, including the risk mitigation independent power producer procurement programme, renewable energy IPP procurement bid windows five, six and seven, battery energy storage IPP procurement bid windows one, two and three, and the gas to power independent power procurement programme bid window one.
Mulilo has been awarded four projects in the Free State, which will deliver a combined 493MW / 1 972MWh of battery energy storage systems (BESS) installations under a 15-year power purchase agreement with Eskom.
This follows Mulilo’s appointment in round two of BESIPPPP, where the company secured five BESS projects.
Mulilo CEO Jan Fourie comments: “BESS is a vital solution for South Africa’s energy sector. It provides grid stability, enhances dispatchability of renewables, reduces load-shedding and optimises costs. Being named preferred bidder in BESIPPPP round three underscores our commitment to building a low-carbon, resilient energy future in the country.”
BESIPPPP bid window three is a site-specific procurement round designed to facilitate the procurement of up to 616MW from facilities that will provide capacity, energy and ancillary services to the National Transmission Company of South Africa as the buyer, at five specified sites in the Free State supply area.
Norwegian renewable energy solutions firm Scatec ASA has been awarded preferred bidder status for the Haru BESS battery energy storage project at the Leander Substation, totalling 123MW / 492MWh.
Scatec says it will provide engineering, procurement and construction, operations and maintenance, and asset management services to the project.
“We applaud the South African government’s commitment and dedication to the renewable energy procurement programmes. Battery energy storage will continue to play an important role in the energy transition, and we will continue to be at the forefront across our core markets,” says Scatec CEO Terje Pilskog.
Building on the experience garnered from the Northern Cape-based hybrid solar and battery storage projects at Kenhardt, and the ongoing construction of Mogobe BESS, Scatec says it continues to actively support battery integration to stabilise the national grid.
According to the Department of Electricity and Energy, these preferred bidders are expected to make a total investment of R9.5 billion in the South African economy.
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