UK company Globeleq, the leading independent power company in
Africa, today announced that its Red Sands project in the
Northern Cape has been awarded Preferred Bidder status in South
Africa's Energy Storage Capacity Independent Power Producer
Procurement Programme (ESIPPPP). Globeleq is majority-owned by
British International Investment (BII), the Development Finance
Institution of the UK Government.
Battery storage is an essential enabler of renewable-energy
generation, and the market for these systems is growing rapidly
in South Africa and worldwide as a means of resolving energy
crises and tackling climate change. These systems provide
reliable power supply on demand, even when the energy grid is
unstable, overcoming the challenges of intermittent wind and
solar sources. They store energy at times of excess generation so
that it can be released into the grid when generation falls short
of demand, helping to mitigate the need for load-shedding.
Experts say that widespread energy storage is vital to expanding
the reach of renewables and speeding the transition to a
carbon-free power grid - this is key to helping reduce South
Africa's reliance on fossil fuels as it seeks to transition to
clean energy. This R5.7 billion (US$300 million) investment
therefore represents a flagship project financed by the UK as
part of its commitment under the Just Energy Transition
Partnership agreed at COP26.
The Red Sands project is in the Northern Cape, about 100km
southeast of Upington, and was originally developed by African
Green Ventures, a South African renewable project development
company owned by Norwegian based energy firm Magnora ASA. The
project will cover approximately 5 hectares (12 acres) and will
connect to the grid through the Eskom Garona substation. The
substation will be upgraded by the Red Sands project to ensure
that full network support capabilities of the project's batteries
can be utilised.
Working closely with leading global battery and balance-of-plant
suppliers, Globeleq estimates that the project will require an
investment of approximately US$300 million and will take 24
months to construct after financial close, which is expected in
2024.
Globeleq is the largest independent power produce in Africa,
providing nearly 1,800 MW of energy in South Africa, Mozambique,
Kenya, Tanzania, Cote d'Ivoire, Egypt and Cameroon. Globeleq is a
UK company based in London and backed entirely with Official
Development Assistance (UK aid).
Red Sands will be Globeleq's first Battery Energy Storage
Solutions (BESS) project in South Africa but the Group owns and
operates a combined solar and BESS plant at Cuamba in Mozambique,
and is developing BESS projects across the African continent.
Globeleq also owns and operates 8 renewable plants (6 solar PV, 2
wind) in South Africa with a total generating capacity of 384 MW.
Mike Scholey, Globeleq's CEO commented:
I am delighted that we have received Preferred Bidder status for
this very important project, and I look forward to working with
the government and our partners to take Red Sands to financial
close and into operations. Electricity storage is going to be key
not only in helping South Africa meet its considerable industrial
and domestic demand for energy but also across Africa as more
renewable energy projects benefit from the advances our industry
has made with BESS technology.
British High Commissioner to South Africa, Antony Phillipson
said:
This is a significant investment in South Africa's future. The UK
is proud to play such a vital role in helping to tackle the
energy crisis with new technology that will bring power supply
stability and most importantly support South Africa's ambition to
reduce carbon emissions.
Media Enquiries
For media enquiries, contact Media.southafrica@fcdo.gov.uk.
Further information
- Globeleq, which is owned 70% by British International
Investment and 30% by Norfund (Norway's Development Finance
Institution), is the leading developer, owner and operator of
electricity generation in Africa. Since 2002, its experienced
team of professionals have built a diverse portfolio of
independent power plants, generating 1,794 MW in 17 locations
across 7 countries, with a further 485 MW in construction and
more than 2,000 MW of power projects in development
- the Just Energy Transition Partnership comprises UK, US,
France, Germany, EU, Denmark and Netherlands who together have
committed $9.3bn towards implementing South Africa's Just Energy
Transition Investment Plan where battery storage is cited as a
key area for investment. The UK contribution of $ 1.8bn plus
grants includes $500m of financing from British International
Investment and Private Infrastructure Development Group and this
battery project falls within that $500m
