Africa BESS: financial close for 1 GWh, 300 MWh changes hands 

In a major coup for South African BESS, a consortium led by French utility EDF Group has achieved financial close on a trio of big battery projects, collectively called Oasis 1.

Oasis 1 comprises Oasis Mookodi (77 MW capacity and 308 MW storage), Oasis Aggeneis (77 MW capacity and 308 MW storage), and Oasis Nieuwehoop (103 MW capacity and 412 MW storage). Mookodi achieved close first, followed by Aggeneis and Nieuwehoop.

The Oasis projects amounted to three out of a total of five projects that were awarded preferred bidder status by the South African Department of Mineral Resources and Energy (DMRE) in the first round of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) in November 2023.

They are expected to be commissioned within two years and are all located in the Northern Cape Supply Area. Altogether, they will provide more than 1 GWh (1,028 MWh) of storage capacity.

The consortium raised 7 billion Rand (around $387 million) in debt funding from the Standard Bank of South Africa and ABSA, to finance the projects. EDF Group led, with co-sponsor Mulilo and equity partners Pele Energy Group and Gibb-Crede rounding out the effort.

The Oasis 1 projects’ cumulative total of more than 1 GWh of storage is hugely significant for South Africa’s struggling market. According to the country’s state-owned power provider Eskom the energy shortage reached 14.4 TWh in 2023. Eskom will enter into a 15-year power purchase agreement with the Oasis project leaders.

Each project includes a 5% ownership interest for local communities through a Community Trust. They will provide grid constraint relief, energy arbitrage, and ancillary services.

Beatrice Buffon, CEO of EDF Renewables, said EDF Group was committed to developing decarbonized projects to meet the needs of South Africa’s electricity system. “Our projects will store and dispatch power to provide grid constraint relief, energy arbitrage, and help to stabilize the grid for short periods by providing or absorbing power. I am convinced that this key milestone opens new opportunities to accompany the energy transition in the country.”

Both 77 MW / 308 MWh projects were sold to EDF Renewables by German company ABO Energy, which developed them into ready to build status prior to offloading them. These two projects are ABO Group’s first South African BESS to reach financial close.

“We are very happy about the financial close of these projects and the successful cooperation with EDF,” said Rob Invernizzi, General Manager of ABO Energy in South Africa.

Since 2021, the company has already sold wind and solar projects totaling around 500 MW in South Africa.