In a significant move for energy sustainability in South Africa, the Oasis 1 battery energy storage systems (BESS) projects have successfully reached financial closure as of November 2024. These groundbreaking initiatives, spearheaded by the EDF Group in partnership with Mulilo, Pele Green Energy, and Gibb Crede, are part of the first round of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). The consortium’s projects are set to be commissioned within the next two years and will play a crucial role in enhancing the reliability of the country’s electrical grid.
The South African Department of Mineral Resources and Energy (DMRE) awarded preferred bidder status to a total of five projects in November 2023. Among these, the Oasis consortium was granted three project contracts, reflecting a strong commitment to local community involvement, as each initiative includes a 5% ownership stake for local communities through a Community Trust.
What Does the Oasis 1 Portfolio Include?
The Oasis 1 portfolio consists of the following projects:
– Oasis Mookodi: 77 MW capacity with 308 MWh storage.
– Oasis Aggeneis: 77 MW capacity with 308 MWh storage.
– Oasis Nieuwehoop: 103 MW capacity with 412 MWh storage.
Collectively, these projects will provide an impressive 257 MW of capacity and 1,028 MWh of storage, all situated in the Northern Cape Supply Area.
Why Energy Storage Matters
The first project, Oasis Mookodi, was the pioneer within the Oasis portfolio to achieve financial closure on November 15, 2024, swiftly followed by Oasis Aggeneis and Oasis Nieuwehoop a few days later. This ambitious project has attracted an impressive 7 billion Rand in debt funding from notable financial institutions such as the Standard Bank of South Africa and ABSA. Operated under a 15-year Power Purchase Agreement with South Africa’s public utility Eskom, these projects are designed to enhance the flexibility and stability of the country’s electrical grid.
According to Eskom, the total energy shortfall reached approximately 14.4 TWh in 2023, highlighting the pressing need for increased grid flexibility. With the ongoing challenges related to energy supply, the Oasis BESS projects symbolize a strategic step towards a more sustainable electricity infrastructure.
Championing Sustainable Solutions
EDF Group has a remarkable history of developing decarbonized energy generation assets within South Africa, currently operating four wind farms with a combined capacity of 145 MW and engaged in an array of projects that collectively aim for 1 GW of installed capacity. The firm is committed to addressing the nation’s energy demands with innovative low-carbon generation solutions.
Beatrice Buffon, Group Senior Executive Vice-President of EDF International Division, elaborated on the company’s mission: “We are extremely pleased to have achieved Commercial and Financial Close on these projects. Our commitment lies in developing decarbonized flexibility solutions to support South Africa’s energy system needs. Our projects will store and dispatch power, providing crucial grid relief and stability.”
With the Oasis 1 projects set to commence, there’s a palpable sense of optimism about South Africa’s energy future. These advancements underscore the nation’s dedication to a greener, more sustainable energy landscape while empowering local communities.
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