UK company Globeleq, the leading independent power company in Africa, has 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 crucial for renewable-energy generation, with the market for these systems growing rapidly in South Africa and worldwide. These systems provide reliable power supply, even when the energy grid is unstable, addressing the challenges of intermittent wind and solar sources. Energy storage plays a key role in mitigating load-shedding and reducing reliance on fossil fuels as South Africa transitions to clean energy.
The R5.7 billion (US$300 million) investment in the Red Sands project is a flagship project financed by the UK as part of its commitment under the Just Energy Transition Partnership agreed at COP26. The project is located in the Northern Cape, about 100km southeast of Upington, and will cover approximately 5 hectares (12 acres).
Globeleq estimates that the project will require an investment of approximately US$300 million and will take 24 months to construct after financial close, expected in 2024. The company is the largest independent power producer in Africa, providing nearly 1,800 MW of energy in various countries on the continent.
Red Sands will be Globeleq’s first Battery Energy Storage Solutions (BESS) project in South Africa, complementing their existing renewable projects across the continent. Globeleq’s CEO, Mike Scholey, expressed excitement about the project and emphasized the importance of electricity storage in meeting energy demand in South Africa and beyond.
The British High Commissioner to South Africa, Antony Phillipson, hailed the investment as a significant step in tackling the energy crisis and supporting South Africa’s efforts to reduce carbon emissions.
Distributed by APO Group on behalf of British High Commission Pretoria.