Globeleq, a prominent independent power provider based in the UK, recently declared that its Red Sands initiative in South Africa’s Northern Cape has achieved the status of Preferred Bidder within the nation’s Energy Storage Capacity Independent Power Producer Procurement Programme (ESIPPPP). The project, which holds a majority stake by British International Investment (BII), the UK Government’s Development Finance Institution is set to become the largest standalone battery energy storage system in South Africa.
The role of battery storage is increasingly recognised as critical in supporting renewable energy generation. These systems are important for providing a consistent power supply, especially when renewable sources like wind and solar are intermittent. By storing surplus energy, these systems allow for its utilisation when production is below demand, thereby reducing the necessity for load-shedding.
Industry specialists stress the importance of such energy storage systems in broadening the impact of renewable energy sources and hastening the shift towards a carbon-neutral power grid. This shift is particularly relevant for South Africa as the country aims to wean off fossil fuels in favour of cleaner energy solutions. The substantial investment of R5.7 billion (approximately US$300 million) by the UK into the Red Sands project goes to show its commitment to the Just Energy Transition Partnership, as agreed upon at the COP26 summit.
Situated roughly 100 kilometres southeast of Upington, the Red Sands project was initially spearheaded by African Green Ventures and is under the ownership of Magnora ASA, a Norwegian energy firm. The project, which spans about 5 hectares, will be integrated into the power grid via the Eskom Garona substation, slated for an upgrade to fully leverage the battery storage capabilities.
Globeleq’s CEO, Mike Scholey, expressed enthusiasm for the project’s advancement and its role in addressing the energy needs within South Africa and potentially other African nations as they benefit from advancements in battery energy storage system (BESS) technology.
The British High Commissioner to South Africa, Antony Phillipson, highlighted the investment’s significance for South Africa’s energy landscape, noting the UK’s pride in contributing to South Africa’s efforts to stabilise power supply and reduce carbon emissions.
Globeleq, already a significant player in Africa’s power sector with nearly 1,800 MW of energy across several countries, is leveraging its expertise to construct this BESS project within 24 months post-financial closure, expected in 2024. The Red Sands BESS project marks an extension of Globeleq’s growing portfolio, which includes a combination of solar and BESS facility in Mozambique and multiple renewable plants within South Africa.
