Energy companies Scatec ASA and Mulilo have been awarded preferred bidder status for a combined 616 MW/2 464 GWh of battery storage capacity under Bid Window 3 of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP).
The winning projects were recently announced by Electricity and Energy Minister Kgosientsho Ramokgopa. All projects are located in the Free State and will operate under 15-year power purchase agreements to provide capacity, energy and ancillary services to Eskom and the National Transmission Company South Africa.
The BESIPPPP was launched under the Integrated Resource Plan 2019 to procure 513 MW of battery storage capacity. Bid Window 3 was issued in March 2024, calling for 616 MW of four-hour battery energy storage systems (BESS).
Norway-based Scatec secured the Haru BESS project, a 123 MW/492 MWh installation at an estimated cost of R2,2 billion with about 80% allocated to engineering, procurement and construction. The project will be financed through 90% non-recourse project debt and 10% equity.
“Dispatchable energy and grid infrastructure are now more important than ever in the pathway to unlock the sustainability of South Africa’s current and future energy system,” said Alberto Gambacorta, General Manager and Executive Vice President for Sub-Saharan Africa at Scatec.
The Haru BESS builds on experience from its hybrid solar and storage projects at Kenhardt and the ongoing construction of the Mogobe BESS, Gambacorta said. Commercial close of this project is expected by the end of the first quarter of next year with operations expected to commence in January 2028.
Meanwhile, Mulilo secured four BESS projects totalling 493 MW/1 972 MWh: Erfdeel, Retreat, Bloemhoek and Vanilla. This follows Mulilo’s earlier success in Round 2, bringing its total BESIPPPP awards to 1 134 GW/4 536 GWh across 12 projects with majority ownership in nine. “BESS is a vital solution for South Africa’s energy sector,” said Jan Fourie, CEO of Mulilo. “It provides grid stability, enhances renewables, reduces load shedding and optimises costs.”
Mulilo currently operates 420 MW of wind and solar projects with 764 MW under construction and more than 1 500 MW targeted for financial close by December 2025.
