CIP's Mulilo-EDF awarded preferred bidder status for 3 BESS projects in South Africa

A consortium consisting of Mulilo Energy Holdings and EDF Renewables has been announced as the preferred bidder for three battery energy storage projects in South Africa, part of five projects awarded under the country's first Battery Energy Storage Procurement Program by the Department of Mineral Resources and Energy. 

The three storage projects namely Oasis Aggeneis, Oasis Mookodi and Oasis Nieuwehoop total a capacity of 1,028 MWh/ 257 MW. They are envisioned to deliver cost-effective and efficient storage capacity to South Africa's electricity grid. 

The total cost of the projects is estimated to be more than ZAR 7 billion, and construction is expected to commence in mid-2024. When completed, the three projects will dispatch electricity under 15-year power purchase agreements to South Africa. 

The consortium claims to hold global experience and local market expertise for effective deployment of BESS projects. Mulilo Energy is an independent power producer in South Africa, who is owned by Copenhagen Infrastructure Partners (CIP) through its Growth Markets Fund I (CI GMF I). 

Robert Helms, partner at CIP, commented on the development, "Securing preferred bidder status for the majority of the procured capacity in South Africa's first public battery storage tender together with EDF marks a significant step in the accelerated growth journey of Mulilo".

We commend the South African government's strong commitment to the rapid buildout of battery energy storage, a key focus technology for Mulilo. With the announcement, we are proud for Mulilo to continue its positive contribution to the country's energy security, socio-economic growth, and green transition", he added.

CIP claims to be the world's largest dedicated fund manager within greenfield renewable energy investments and a global leader in offshore wind. The funds managed by CIP focus on investments in offshore and onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, storage, advanced bioenergy, and Power-to-X.

Jan Oberholzer, Chairman of the Board in Mulilo, spoke on the successful bidding for the BESS projects, "This achievement is an important and significant milestone for Mulilo. I am very proud of the entire team that is currently outperforming our business plans and look forward, together with our partners, to the successful execution of these projects".

He added, "We remain committed playing our important part ensuring sustainable electricity supply needed for economic growth and the betterment in the lives of the 61 million people in our beautiful country."