en.Wedoany.com Reported - Globeleq has announced that its 153MW/612MWh Red Sands Battery Energy Storage System (BESS) in South Africa's Northern Cape Province has achieved commercial and financial close, making it the largest standalone battery project in Africa to reach financial close.
Located near Upington, the South African Department of Electricity and Energy and the National Transmission Company of South Africa (NTCSA) have signed a power purchase agreement for the facility to support national grid operations. Globeleq acquired the project from South African developer African Green Ventures in 2023. The Red Sands facility, covering 5 hectares, was awarded preferred bidder status last year under South Africa's Battery Energy Storage Independent Power Producer Procurement Programme. It will provide grid enhancement ancillary services and grid management services to the NTCSA network, while supplying electricity under a 15-year power purchase agreement.
Globeleq borrowed approximately 5.4 billion South African rand (USD 304 million) from Johannesburg-based lenders ABSA Group and Standard Bank to finance the project. State-owned enterprise China Energy Engineering Group Co., Ltd. has been appointed as the engineering, procurement, and construction (EPC) provider, while Sungrow Power Supply Co., Ltd. will supply the battery system under a long-term service agreement. The project will create 250 construction jobs and 80 operational jobs.
Globeleq, 70% owned by British International Investment and 30% by Norfund, is developing this BESS as its second energy storage project, joining its portfolio of 13 solar, wind, and solar-plus-storage projects in South Africa, Mozambique, Kenya, and Egypt. The company is also building the Menengai geothermal project in Kenya. Its Red Sands partners include African Rainbow Energy and Power and the African Rainbow Energy clean energy investment platform under ABSA Group.
Globeleq CEO Jonathan Hoffman stated that the financial close of the Red Sands BESS marks a key milestone for the company and the development of battery energy storage in Africa, highlighting the company's ability to deliver large-scale clean energy infrastructure to meet the continent's electricity needs. The company has integrated battery storage into its portfolio to support resilient, low-carbon power systems across Africa.
