South Africa Pushes Forward with Battery Energy Storage to Address Energy Crisis
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Cape Town – South Africa is making significant strides in bolstering its energy security through the Battery Energy Storage System Independent Power Producer Procurement Programme (BESS IPPPP). Dr. Kgosientsho Ramokgopa, Minister of Electricity and Energy, presented a comprehensive briefing to the Portfolio Committee of Electricity and Energy on June 19, 2025, outlining the program’s objectives, procurement process, and its expected contribution to the national grid.
The briefing aimed to provide transparency regarding the BESS IPPPP, specifically addressing concerns and allegations of conflicts of interest and ensuring the integrity of the procurement process. The Department of Electricity and Energy reaffirmed its unwavering commitment to transparency, ethical conduct, and sound governance in the program’s implementation.
The BESS IPPPP is designed to add much-needed dispatchable generation capacity to the grid, helping to alleviate the country’s persistent energy supply challenges and supporting the integration of renewable energy sources.
Key updates from the briefing include:
- BESS Bid Window 1 (BW1): This phase is currently under construction, with a total contracted capacity of 513 MW. Projects like the Mulilo Total Hybrid and Hotazel Storage are progressing, with expected commercial operation dates ranging from September 2025 to June 2026. The Red Sands BESS Garona project, with 153 MW, is set to sign project agreements in June 2025, targeting a Q1 2028 commercial operation date.
- BESS Bid Window 2 (BW2): The Request for Proposals (RFP) for BW2 was released on December 14, 2023, attracting 31 bid responses by August 29, 2024. All bidders qualified, and eight preferred bidders were announced on December 23, 2024, representing a total investment of R12.8 billion. Projects like Oasis Ararat and Oasis Vredendal are slated for commercial close by August 2025.
- BESS Bid Window 3 (BW3): The DoE plans to release the RFP for BW3 by the end of June 2025. This phase aims to procure an additional 3000 MW of dispatchable capacity, with a target commercial operation date of December 2027. BW3 will prioritize energy availability during peak demand hours, address transmission network constraints, and consider the socio-economic development impact of projects.
The Minister emphasized that the BESS IPPPP is a critical component of South Africa’s broader energy strategy, aiming to ensure a stable and reliable electricity supply for the country’s economic growth and development. The program is expected to continue playing a vital role in the transition to a more diversified and sustainable energy mix.
