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
The South African government has selected preferred bidders for the development of four utility-scale battery energy storage system (BESS) projects in the Northern Cape, with a combined investment value of R10-billion.

The four BESS installations will have a combined capacity of 360 MW/1 440 MWh, with three using lithium-ion battery technology, and one being a lithium-iron-phosphate solution.

The projects are Oasis Aggeneis (77 MW), Oasis Mookodi (77 MW) and Oasis Nieuwehoop (103 MW), which were bid by EDF Renewables and its partners; and the Scatec-led Mogobe BESS project (103 MW.

All the BESS projects have four hours of storage.

EDF Renewables is partnering with Mulilo and black-empowerment groups Pele Energy Group and GIBB-Crede on its projects, while Scatec's empowerment partner is Perpetua Holdings.

The Independent Power Producer (IPP) Office is also in negotiations for a project at a fifth site, identified previously as being Garona, also in the Northern Cape.

The four projects have been awarded following an inaugural BESS public procurement bid window for 513 MW/2 025 MWh, known as the ESIPPPP.

A total of 17 bids were received by the August 2 closing date and the projects were selected following an independent evaluation conducted between August and October.

Minerals Resources and Energy Minister Gwede Mantashe has said the projects are expected to achieve commercial close by June 2024.

He has also confirmed that a second ESIPPPP bid window for 1 230 MW will be launched shortly, along with the long-delayed Bid Window Seven of the Renewable Energy Independent Power Producer Procurement Programme and an inaugural gas-to-power request for proposals.

Key Contracts, Suppliers and Consultants
None stated.

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