Electricity and Control December 2024

First three battery energy storage projects reach financial close

Awarded preferred bidder status in the first round of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), the three Oasis 1 battery energy storage systems (BESS) projects reached financial close in November 2024. The projects are expected to be commissioned within 24 months and will contribute to the security of supply and stabilising the electricity grid in the country. In Round 1 of the BESIPPP, the Department of Mineral Resources and Energy (DMRE) awarded preferred bidder status to five projects in November 2023. The Oasis consortium, which was awarded three of the five projects, is led by 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 Oasis 1 portfolio includes: Oasis Mookodi (77 MW capac ity with 308 MWh storage), Oasis Aggeneis (77 MW capacity with 308 MWh storage), and Oasis Nieuwehoop (103 MW capacity with 412 MWh storage). Together the three projects are set to provide 257 MW of capacity and 1 028 MWh of storage. All the projects are located in the Northern Cape Supply Area. Oasis Mookodi was the first project within the Oasis portfolio to achieve financial close on 15 November 2024, followed by Oasis Aggeneis and Oasis Nieuwehoop, on 20 November 2024. The consortium has raised R7 billion in debt funding from the Standard Bank of South Africa and ABSA, to finance the projects. The Oasis projects will operate under a 15-year Power Purchase Agreement with South Africa’s national utility Eskom. Oasis Mookodi will be located at Mookodi, Oasis Aggeneis will be located at Aggeneis Substation, close to the town of Aggenys, and Oasis Nieuwehoop will be located at Nieuwehoop Substation, close to Kenhardt. Minister of Electricity and Energy Dr Kgosientsho Ramokgopa signed the agreements and the Department of Electricity and Energy said in a statement that construction of the BESS projects within 24 months will see the storage capacity come online by November 2026. The BESIPPPP is key to supporting South Africa’s electricity infrastructure as the system needs more flexibility to

accommodate the feed in of new renewable energy and improve grid stability. □

The national grid’s Northern Cape Supply Area highlighting (in yellow) the location of the three Oasis 1 BESS projects.

DECEMBER 2024 Electricity + Control

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