Northern Cape powers ahead with battery energy storage projects

Supplied|Published 5 months ago

(From left): Laurent Clement (VP EDF Africa), Dr Kgosientsho Ramokgopa (Minister of Electricity and Energy), Andrew Etzinger (GM: Energy Market Services & International Trader, National Transmission Company South Africa), Tshifhiwa Bernard Magoro (head of the IPP Office). Picture: Supplied

THE NORTHERN Cape continues to cement its status as a powerhouse in South Africa’s renewable energy sector, with three significant battery energy storage projects achieving financial close.

The three Oasis 1 battery energy storage systems (BESS) projects, led by the EDF group and partners, all reached financial close this month. Awarded in the first round of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme, the projects are expected to be commissioned within 24 months and will contribute to the security of supply and stabilising the electrical grid in the country.

The Department of Mineral Resources and Energy awarded preferred bidder status to five projects of Round 1 of the Battery Energy Storage Independent Power Producer Programme in November last year. The Oasis consortium, which was awarded three of the five projects, is led by the EDF Group and includes co-sponsor Mulilo, and equity partners Pele Energy Group and Gibb-Crede. Each project includes a 5% ownership interest for local communities through a community trust.

The three projects amount to 257 MW of capacity and 1,028 MWh of storage. All projects are located in the Northern Cape Supply Area.

The Oasis 1 portfolio comprises the following projects:

Oasis Mookodi

Oasis Aggeneis

Oasis Nieuwehoop

Oasis Aggeneis will be located at Aggeneis substation close to the town of Aggenys, while Oasis Nieuwehoop will be situated at Nieuwehoop substation close to Kenhardt, both in the Northern Cape.

The Mookodi substation is located near Vryburg in the North West Province. Despite its geographical position, it is part of the Northern Cape Supply Area within Eskom's transmission network.

Oasis Mookodi was the first project within the Oasis portfolio to achieve financial close on November 15, 2024, followed by Oasis Aggeneis and Oasis Nieuwehoop on November 20, 2024.

The three Oasis 1 project locations in the Northern Cape Supply Area are marked with red dots surrounded by yellow circles. Graphic: Supplied

The consortium has raised R7 billion in debt funding from Standard Bank and Absa to finance the projects. The Oasis projects will operate under a 15-year Power Purchase Agreement with South Africa’s public utility Eskom.

The projects are crucial to the South African electricity infrastructure as the system needs more flexibility to improve the grid stability. According to Eskom, the total energy shortage reached 14.4TWh in 2023.

The EDF Group has already been active in the development of decarbonised generation assets in the country, operating four wind farms (145 MW), and is currently developing several wind, solar, and hybrid projects totalling 1GW of installed capacity.

This showcases the role of low-carbon generation in addressing the country’s electricity needs and supporting decarbonisation through C&I strategies.

Beatrice Buffon, group senior executive vice-president, EDF International Division, CEO of EDF Renewables, said: “We are very pleased to have achieved commercial and financial close on these projects. EDF is committed to developing decarbonised flexibility solutions to meet the needs of the electricity system in South Africa. Our projects will store and dispatch power to provide grid constraint relief, energy arbitrage, and help to stabilise the grid for short periods by providing or absorbing power. I am convinced that this key milestone opens new opportunities to accompany the energy transition in the country.”