Globeleq to build Africa’s largest standalone battery project in SA
TLDR
- Globeleq's Red Sands project in South Africa's Northern Cape granted Preferred Bidder status in the country's Energy Storage Capacity ESIPPPP program.
- African Green Ventures, a local renewable project development company, initially developed the Red Sands project, now owned by Norwegian-based energy firm Magnora ASA.
- Globeleq anticipates a $300 million investment for project construction with leading global battery and balance-of-plant suppliers, targeting a 2024 financial close for a 24-month construction timeline.
UK-based Globeleq, a prominent independent power company in Africa, has announced that its Red Sands project in South Africa's Northern Cape has been granted Preferred Bidder status in the country's Energy Storage Capacity Independent Power Producer Procurement Programme (ESIPPPP).
Located around 100km southeast of Upington, the Red Sands project was initially developed by African Green Ventures, a South African renewable project development company owned by Norwegian-based energy firm Magnora ASA.
Globeleq, collaborating with leading global battery and balance-of-plant suppliers, anticipates an investment of around $300 million for the project's construction. Following financial close, expected in 2024, construction is estimated to take 24 months.
Key Takeaways
Battery storage plays a pivotal role in enabling renewable energy generation, addressing energy crises, and combating climate change both in South Africa and globally. These systems offer a dependable power supply on demand, particularly during periods of grid instability, effectively managing the intermittency of wind and solar energy sources. By storing surplus energy during periods of excess generation and releasing it during times of high demand, battery storage helps alleviate the need for load shedding. Experts emphasize the importance of widespread adoption of energy storage in expanding renewable energy adoption and accelerating the transition to a carbon-neutral power grid. This transition is critical for reducing South Africa's dependence on fossil fuels and advancing towards a clean energy future.
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