, /PRNewswire/ -- Globeleq, a leading independent power company in Africa, together with its project partner, African Rainbow Energy, announced that they have reached commercial close on the 153 MW/612 MWh Red Sands battery energy storage project (Red Sands BESS) in South Africa, by signing the project agreements with the Department of Electricity and Energy and the National Transmission Company South Africa (NTCSA).
The project is situated in the Northern Cape and is the largest standalone BESS plant in Africa to reach commercial close. The project will span approximately five hectares and involves substantial upgrades to Eskom's and the NTCSA's grid infrastructure.
The Red Sands BESS will ease transmission and distribution congestion in the Northern Cape, strengthening South Africa's energy infrastructure and supporting a more resilient and decarbonized power sector. The project was awarded preferred bidder in 2024 under the South African Government's battery energy storage independent power producer programme. Red Sands BESS will enhance grid stability by storing energy during off-peak times and releasing it during periods of peak demand. It also provides ancillary services and grid management support to the NTCSA.
Red Sands BESS will be Globeleq's second utility scale BESS in its renewable portfolio adding to its 13 solar, wind and hybrid PV plus BESS plants in South Africa, Mozambique, Kenya and Egypt, as well as the Menengai Geothermal plant currently under construction in Kenya.
Jonathan Hoffman, Globeleq's CEO commented:
"Commercial close on the Red Sands BESS is a landmark moment for Globeleq and for battery storage in Africa. It highlights our ability to deliver large-scale, clean energy infrastructure that meets the continent's evolving power needs. Building on over a decade of renewable energy leadership in South Africa and our Cuamba solar-plus-storage plant in Mozambique, we're integrating battery storage across our portfolio to support resilient, low-carbon power systems across Africa."
Brian Dames, CEO of African Rainbow Energy added:
"The investment in Red Sands, in partnership with Globeleq, supports our objective to utilise modern and renewable energy technologies to provide affordable electricity in South Africa and on the African continent, whilst uplifting communities. This investment also marks the substantial progress of the R3 billion commitment we have made as part of The South African Investment Drive."
Segomoco Scheppers, Eskom's interim Chief Executive for the NTCSA remarked:
"The successful commercial close of Red Sands BESS, the fifth project in the 1st Energy Storage Bid Window, will enable the NTSCA to unlock additional capacity in the constrained Northern Cape supply area. The addition of the 153 MW facility will ensure that power, generated primarily by solar PV plants in the area, will charge the batteries during off-peak periods. The batteries will then discharge during peak periods, thereby reducing the pressure on the grid. We are looking forward to the positive impact of having battery technology in the energy mix, which will contribute to the country's dispatchable load and promote grid stability by the supply of ancillary services."
Antony Phillipson, British High Commissioner to South Africa, said:
"The Red Sands project is a powerful example of how our partnership with South Africa can drive innovation, sustainability, and energy security. This represents a bold step toward a cleaner, more resilient energy future - one that benefits communities, strengthens infrastructure, and supports our shared commitment to a just energy transition."
Mr. Gjermund Sæther, the Norwegian Ambassador to South Africa confirmed:
"The Red Sands battery storage project's successful commercial close highlights the importance of international cooperation and public-private partnerships in tackling energy security and promoting a sustainable energy future. Both in terms of energy security, affordability and climate concerns, this project is a milestone. Norway is one of the largest investors in renewable energy in South Africa through Globeleq, Norfund and private companies. The strong partnership between Norway and a democratic South Africa, dating back to our support for the liberation struggle, continues to evolve into the future."
Holger Rothenbusch, Managing Director and Head of Infrastructure and Climate of British International Investment commented: "This landmark project is another example of our commitment to providing climate finance to African economies. I am confident that Red Sands will be the first of many such projects in South Africa and the wider region."
About Globeleq
Globeleq, owned by British International Investment, the UK's development finance institution, and 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 seven countries, with a further 485 MW in construction and more than 2,000 MW of power projects in development. More details at www.globeleq.com.
About African Rainbow Energy
African Rainbow Energy is a renewable energy platform owned by African Rainbow Energy and Power and Absa Bank. African Rainbow Energy is invested in 1,100 MW of renewable projects, of which 132 MW is under construction, and additionally owns a debt portfolio of R5 billion across 23 renewable energy assets, making it one of the largest and most diverse independently owned energy businesses in South Africa. More details at www.africanrainbowenergy.co.za
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