News flash

  • African Rainbow Energy, together with its project partner, Globeleq, 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 was awarded Preferred Bidder status in South Africa’s Battery Energy Storage Capacity Independent Power Producer Procurement Programme (BESIPPPP) in April 2024. Projects had 8 months to reach commercial close. No reason was provided regarding the extended delay in reaching commercial close. Previously, Globelec and partners failed to reach commercial close for 12 projects in South Africa’s REIPPPP Bid Window 5. Read more 

The Red Sands project is located in the Northern Cape, about 100km south-east of Upington, and will be the largest standalone battery energy storage system in Africa. The project was originally developed by African Green Ventures (AGV), the South African development arm of Magnora ASA, a Norwegian company listed on the Oslo Stock Exchange. The project will take up 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.

Related news: Allegations of tender rigging in South Africa’s energy storage bid window 3 tender

Working closely with leading global battery and balance-of-plant suppliers, Globeleq estimates that the project will cost approximately US$300 million (ZAR5.7 billion) and will take 24 months to construct.

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 decarbonised 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.

Author: Bryan Groenendaal