Electricity Minister Dr. Kgosientsho Ramokgopa has unveiled the preferred bidders for five major Battery Storage Power Procurement projects under Bid Window 3, marking a significant step in bolstering the country’s energy capacity. Independent power producers (IPPs) Mulilo and Scatec have been selected to develop new battery storage facilities worth R9.5 billion, aimed at enhancing grid stability and reducing electricity costs in the long term.
Key Details of the Projects
The battery storage facilities, which will utilize lithium-ion technology, will be constructed across five sites in the Free State province. The projects are expected to add 616 megawatts of energy storage capacity to the national grid, helping to mitigate load-shedding and improve power reliability.
Minister Ramokgopa emphasized that the Power Purchase Agreements (PPAs) will span 15 years, aligning with global standards. He highlighted the economic benefits, stating that the initiative is projected to create over 800 jobs during construction and operation phases, with an initial investment of R9 billion.
Boosting the Economy and Lowering Energy Costs
The minister underscored the long-term advantages of the battery storage program, stating that it would not only strengthen South Africa’s power infrastructure but also drive down electricity prices.
“As this program matures, the cost of energy storage solutions will decrease, preventing households from facing runaway tariff increases,” Ramokgopa said. “Cheaper electricity will also benefit industries, allowing them to produce goods more competitively and expand their market share both domestically and internationally. This is how we grow the South African economy.”
Timeline and Next Steps
The projects are expected to reach commercial close within the next eight months, with full commercial operations anticipated by January 2028.
This development is part of South Africa’s broader strategy to integrate renewable energy and storage solutions into its power system, ensuring a more resilient and sustainable energy future.