Name of the Project
Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) – Bid Window 3 (BW3).

Location
Free State, South Africa.

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

Project Description
The Department of Electricity and Energy released the request for proposals (RfP) for the BESIPPPP on March 28, 2024.

The RfP calls for 616 MW/2 464 MWh of battery energy storage projects allocated to five preselected substation sites in the Free State – Harvard, Leander, Theseus, Everest and Merapi – identified by Eskom.

In May 2025, South African independent power producer (IPP) Mulilo emerged as the preferred bidder across four of the sites:

• the 124 MW Bloemhoek BESS project at the Theseus substation, which had an evaluation price of R1 801.24/MWh;
• the 123 MW Erfdeel BESS project at the Everest substation, with an evaluation price of R2 157.29/MWh;
• the 123 MW Vanilla BESS project at the Harvard substation, with an evaluation price of R2 169.80/MWh; and
• the 123 MW Retreat BESS project at the Merapi substation, with an evaluation price of R2 477.86/MWh.

Scatec, of Norway, prevailed with its 123 MW Haru BESS project at the Leander substation, with a R2 037.10/MWh evaluation price.

All the projects will use lithium-ion battery technology.

Potential Job Creation
The projects are expected to create 852 job opportunities during construction and operations, and Mulilo and Scatec have also committed to invest R184-million in skills and supplier development over the lifetime of the projects, as well as socioeconomic development initiatives.

Capital Expenditure
R9.5-billion across five substation sites in the Free State.

Planned Start/End Date
None of the projects have reached financial close yet, but they are expected to enter into commercial operation by January 2028.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Department of Electricity and Energy, tel + 27 12 406 7788 or email info@energy.gov.za.
IPP Office, email info@ipp-storage.co.za.