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

Location
Free State, Gauteng and North West, South Africa.

Project Owner/s
The Department of Electricity and Energy, 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/2 460 MWh of battery energy storage capacity.

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.

In December 2024, the Department of Electricity and Energy announced the eight preferred bids:
•    Oasis Ararat BESS (77 MW), Ararat substation, in North West – EDF Renewables;
•    Gainfar BESS (77 MW), Ngwedi substation, in the Free State – AMEA;
•    Boitekong BESS (77 MW), Marang substation, in the Free State – AMEA;
•    Welverdiend BESS (77 MW), Carmel substation, in Gauteng – Mulilo;
•    Leeuwpoort BESS (77 MW), Midas substation, in Gauteng – Mulilo;
•    Rooikoppies BESS (77 MW), Bighorn substation, in North West – Mulilo;
•    Hartbeesfontein BESS (77 MW), Hermes substation, in North West – Mulilo; and
•    Mulilo Mercury BESS (76 MW), Mercury substation, in the Free State – Mulilo.

Potential Job Creation
The eight BESIPPPP preferred bidders have committed to 41% black shareholding in the IPP project companies, up to 27% shareholding by construction contractors and up to 36% in operations contractors.

They have further committed to creating more than 1 500 job opportunities for local citizens during the construction and operation of the sites, with 31%, or R5-billion, of the total project costs having been dedicated to local-content spend during the construction and operational phases of the projects.

In addition, the preferred bidders have undertaken to invest R1.8-billion on black enterprise procurement, R1.4-billion in broad-based black economic-empowerment (BBBEEE) procurement on qualifying small enterprises and exempt microenterprises, and an additional R659-million in BBBEEE procurement, specifically black women.

They have also committed to spend R316-million on supplier development, skills development and socioeconomic development initiatives over the life span of the projects.

Capital Expenditure
R12.8-billion.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
EDF Renewables (Oasis Ararat); AMEA Power (Gainfar and Boitekong); and Mulilo (Welverdiend, Leeuwpoort, Rooikoppies, Hartbeesfontein and Mulilo Mercury).

Contact Details for Project Information
DME, tel + 27 12 406 7788 or email info@energy.gov.za.
IPP Office, email query@ipp-storage.co.za.