Name of the Project
ESIPPPP – Bid Window 1.

Location
Five substation sites in the Northern Cape, in South Africa.

Project Owner/s
Department of Mineral Resources and Energy (DMRE).

Project Description
The Energy Storage Independent Power Producer Procurement Programme (ESIPPPP) Bid Window 1 is the first battery energy storage bidding round to be released in line with the Ministerial Determination of September 25, 2020.

The ESIPPPP aims to procure 513 MW, or at least 2 052 MWh, of battery storage across five substation sites.

The batteries are set to be installed in close proximity to five substation sites in the Northern Cape, which have been specified by Eskom:

•          Aggeneis 77 MW, at a minimum installed energy rating of 308 MWh;

•          Ferrum 103 MW, at a minimum installed energy rating of 412 MWh;

•          Garona 153 MW, at a minimum installed energy rating of 612 MWh;

•          Mookodi 77 MW, at a minimum installed energy rating of 308 MWh; and

•          Nieuwehoop 103 MW, at a minimum installed energy rating of 412 MWh.

The sites aim to unlock renewables capacity in the grid-constrained province, but the storage projects selected are also required to offer ancillary services.

The ESIPPPP request for proposals (RFPs) was launched on March 7, 2023, and the bid submission date has been set for July 5, 2023.

Bids outside of these specified substation connection areas will not be considered.

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
The projects procured under Bid Window 1 will be required to reach commercial operation by 2024.

Latest Developments
Seventeen bids have been received in response to the DMRE’s inaugural public procurement for battery energy storage system (BESS) projects.

The BESS RFPs was launched on March 7, with an initial bid submission deadline of July 5, which was subsequently postponed to August 2 as a result of delays to the issuance of cost estimate letters for grid connections.

The DMRE has published a list of the projects, along with the names of the project companies, which include:

• Sol Invictus 6 BESS, bid by Sol Invictus 6 (Pty) Ltd;
• Hyperion 2 BESS, bid by Cyraguard (Pty) Ltd;
• New Hope 2 BESS, bid by Lacerta Energy (Pty) Ltd;
• Impala BESS, bid by Impala Solar Plant (RF) (Pty) Ltd;
• Zuurwater BESS, bid by Aggeneis PV2 (Pty) Ltd;
• Mogobe BESS, bid by AEP Mogobe (Pty) Ltd;
• Kenhardt BESS, submitted by a consortium to be incorporated;
• ACWA BESS 1, bid by ACWA BESS 1;
• Oasis Mookobi, bid by EDF Development South Africa (Pty) Ltd;
• Oasis Aggeneis, bid by EDF Development South Africa (Pty) Ltd;
• Oasis Nieuwehoop, bid by EDF Development South Africa (Pty) Ltd;
• Sonbesie BESS, bid by Sonbesie Power Plant (RF) (Pty) Ltd;
• Boitshoko BESS; bid by Boitshoko Solar Power Plant (RF) (Pty) Ltd;
• Red Sands BESS, bid by AGV Projects (Pty) Ltd;
• Tulip, bid by Veld PV South (Pty) Ltd;
• Protea, bid by Protea Solar Power Plant (RF) (Pty) Ltd; and
• Neo BESS, bid by the Neo BESS Bidder Consortium.

The DMRE did not provide further details regarding the identities of the consortium members behind each bid, neither did they indicate whether the bids were evenly spread across the five selected sites.

The department also did not comment on the tariffs bid, saying only that the information could be provided only once the evaluation of the bids was completed.

“It is envisaged that preferred bidders will be announced within the next two months,” the DMRE told Engineering News in response to questions.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
DMRE, tel + 27 12 444 3000 or email enquiries@dmr.gov.za.