Independent power producer (IPP) Mulilo − in collaboration with EDF International, Pele Green Energy and Gibb Crede − has reached financial close on three battery energy storage system (BESS) projects.
Oasis Mookodi, a 77MWAC / 308MWh BESS project, was the first of three within the Oasis portfolio to achieve financial close this month.
The project is located in Vryburg, North-West, and is part of South Africa’s first Battery Energy Storage Independent Power Producer Procurement Programme, which marks a milestone in the nation's clean energy journey, says the company in a statement.
The other two projects, Oasis Aggeneis and Oasis Nieuwehoop, reached financial close on Thursday last week and construction is scheduled to begin this month.
According to Mulilo, these three projects will bring a combined capacity of 257MW / 1 028MWh and will be located in the Northern Cape and North-West provinces.
The Oasis projects will operate under a 15-year power purchase agreement with Eskom.
The IPP notes the combined capital cost of the BESS projects stands at approximately R7 billion. Debt financing has been secured through a consortium of local lenders, including Standard Bank and Absa, reflecting the commitment of leading local financial institutions to advancing renewable energy solutions in South Africa, says Mulilo.
It points out that this underscores the dedication and expertise of a diverse, multidisciplinary team of over 100 professionals from 10 different organisations, working collaboratively to bring this project to financial close within 12 months of achieving preferred bidder status.
Jan Fourie, CEO of Mulilo, says: “Reaching financial close on all three BESS projects is a landmark achievement for Mulilo and aligns with our strategic commitment to diversification.
“These BESS initiatives are pivotal for the nation, enhancing grid stability and enabling increased integration of renewable energy sources, such as solar and wind. This flexibility is crucial to achieving an optimised and balanced energy generation mix. We are also proud of the positive impact these projects will have on local communities.”
Mulilo notes that BESS technology plays a transformative role in SA’s energy landscape, improving the grid’s resilience and supporting the nation’s shift toward a sustainable, low-carbon future.
The firm says it looks forward to expanding its BESS portfolio and contributing to the country's just energy transition, paving the way for a more reliable and environmentally-friendly energy future.
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