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Independent power producer Globeleq and its partner, African Rainbow Energy, have secured financing for the 153 MW/612 MWh Red Sands battery energy storage system (BESS), a landmark project poised to become Africa’s largest standalone facility of its kind.
The deal, valued at approximately R5.4 billion ($292 million), was financed through debt from South African financial giants Absa and Standard Bank. The project, located near Upington in the Northern Cape, will supply electricity to the National Transmission Company South Africa (NTCSA) under a 15-year power purchase agreement.
This initiative is a critical step in addressing South Africa’s persistent energy crisis and grid stability challenges. The BESS will help alleviate transmission and distribution congestion, supporting a more reliable power system.
“Financial close on Red Sands BESS is a pivotal step in delivering Africa’s largest standalone battery storage project,” said Jonathan Hoffman, Globeleq’s CEO. “With the support of Absa and Standard Bank, we are advancing a more resilient, low-carbon power system.”
The project will also involve significant upgrades to the grid infrastructure owned by Eskom and the NTCSA. China Energy Engineering Corporation has been selected as the engineering and procurement contractor, with BESS technology supplied by Sungrow.
The construction phase is expected to create around 250 jobs, with 80 permanent positions once the facility becomes operational. The project emphasizes local employment and skills development, aligning with African Rainbow Energy’s commitment to using modern technologies for affordable electricity while uplifting communities.
Brian Dames, CEO of African Rainbow Energy, highlighted the project’s broader significance, noting it is a “proud moment” for the partnership and marks substantial progress toward the R3 billion commitment his company made as part of the South African Investment Drive.
Acquired by Globeleq in 2023, the Red Sands BESS is a key addition to the company’s growing portfolio of renewable energy assets across Africa, which includes solar, wind, and hybrid plants in South Africa, Mozambique, Kenya, and Egypt.
