Battery Energy Storage Independent Power Producer Procurement Programme – Bid Window 2, South Africa – update

12th April 2024 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Battery Energy Storage Independent Power Producer Procurement Programme – Bid Window 2, South Africa – update

Name of the Project
Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) – Bid Window 2 (BW2).

Location
North West, South Africa.

Project Owner/s
Department of Mineral Resources and Energy (DMRE), and the Independent Power Producers (IPP) Office.

Project Description
The request for proposals for the BESIPPPP – BW2 was released in December 2023 and calls for 615 MW battery energy storage capacity.

Eight storage facilities in closest proximity to dedicated substations – Mercury, Carmel, Hermes, Ngwedi, Midas, Marang, Bighorn and Ararat, in the North West supply area – will be procured.

Under BW2, the IPP Office is aiming to procure 77 MW of battery energy storage systems at every substation, each with four hours of storage.

A minimum availability of 95% over 8 760 hours per contracted year is also stipulated and the facilities will be expected to provide instantaneous, regulating and supplementary reserves.

The closing date for bid submissions under BW2 is April 30, 2024.

The preferred bidder will be announced about three months after the bid submission date.

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
The DMRE has approved an extension of the bid submission date from April 30, 2024, to June 6, 2024, taking into consideration the timelines indicated by Eskom for the processing of cost-estimate letters applications, as well as requests from bidders to allow for more time to prepare their bid responses. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
IPP Office, email query@ipp-storage.co.za.