The signing of the very first standalone grid-scale private sector battery energy storage Projects, occurred in Cape Town, a few days ago.
The two Projects, have combined capacity of about 180 Megawatts (MW) /720MWh, will be connected to two transmission substations located in the Northern Cape and North-West provinces.
Battery Energy Storage System (BESS) technology plays a critical role for grid operation by storing energy during periods of less demand for electricity and releasing that energy when needed.
In addition, BESS provides grid stability through Ancillary Services for the System Operator.
The two Projects that achieved Commercial Close last week, are Mogobe BESS and Oasis Mookodi.
Mogobe BESS, with a contracted capacity of 103MW/412MWh, will be connected to Eskom’s Mogobe Substation close to Kathu in the Northern Cape province.
Oasis Mookodi, with a contracted capacity of 77MW/288MWh, will be located at Mookodi substation close to Vryburg in the North West Province.
Speaking about the economic benefits of the projects, Dr Kgosientsho Ramokgopa, Minister of Electricity and Energy, said both projects will now move into construction phase, expected to take no more than 24 months with commercial operation expected aroundSeptember 2026.
These projects are expected to attract investment of an estimated R5.3 billion, and create around 484 job opportunities (measured in job years), which includes 217 jobs during construction and 267 jobs during operations.
Four (4) Preferred Bidders were announced under the BESSIPPPP Bid Window 1 on 30 November 2023, and a further fifth Project was appointed later on 28 March 2024,following value for money negotiations.
Two (2) of these three remaining Projects are expected to reach commercial close at the end of November 2024.
The fifth bidder is preparing for commercial close in early 2025.