The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, announced the appointment of five preferred bidders under the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 3 at the end of May 2025.
The BESIPPPP Bid Window 3 was launched on 28 March 2024, with bids submitted on 28 November 2024. The evaluation process, conducted by an Independent Bid Evaluation Committee under strict security measures, took place at the IPP Office. The Battery Energy Storage Programme is a critical initiative aimed at enhancing South Africa’s power system by providing essential ancillary services and increasing grid capacity through energy storage. The ancillary requirements for all the BESIPPPP Programmes are as follows:
- Instantaneous reserves
- Regulating reserves
- 10-minute reserves
- Supplemental reserves
BESIPPPP Bid Window 3 is a site-specific procurement round designed to facilitate the procurement of up to 616 Megawatts (MW) from facilities that will provide capacity, energy and ancillary services to NTCSA, as the buyer, at five specified sites in the Free State Supply Area, therefore only one preferred bidder is appointed per site.
The Department received a total of 33 bid responses on 28 November 2024. After the independent evaluation process, the following preferred bidders have been appointed under the bid window, representing a total investment of R9.5-billion:
The BESIPPPP BW3 round was again found to be highly competitive, with a marked increase in the number of bids relative to the previous bid windows, resulting in a 40% and 8% decrease in the average evaluation price, compared to Bid Window 1 and Bid Window 2 prices, respectively.
The five preferred bidders have made the following commitments:
- Black Shareholding will contract at a minimum of 40% in the IPP Project Companies; up to 30% black shareholding by construction contractors; and up to 42% in operations contractors.
- Total Job Opportunities: 852 job opportunities for RSA citizens (measured in job years), during construction and operations.
- Local Content Spend: Over R3.7-billion during construction and during the operation and maintenance phases.
- Preferential Procurement: Over R3-billion from B-BBEE companies, R1.3-billion from black-owned enterprises, R1.1-billion from qualifying small enterprises and exempted micro enterprises as well as R562-million from black women.
- Supplier development, skills development, bursaries for black students, skills development for black disabled people, enterprise development and socio-economic development initiatives: R184-million over the lifetime of the projects.
Scatec wins battery storage project in SA
Scatec ASA has been awarded preferred bidder status for the Haru BESS Battery Energy Storage Project totalling 123MW/492MWh in the third bid window of the BESIPPPP in South Africa, by the Department of Mineral Resources and Energy.
Scatec will receive payments under a 15-year agreement for making the storage capacity available for the National Transmission Company of South Africa (NTCSA) which will utilise the capacity to balance the grid. The estimated total capex for the battery energy storage project is R2.2-billion (USD120-million) of which Scatec’s EPC contracts account for approximately 80%. The project will be financed by 90% non-recourse project debt and the remaining by equity from the owners.
“Today’s award reaffirms our standing as a leading renewable energy player in South Africa. We applaud the South African government’s commitment and dedication to the renewable energy procurement programmes. Battery energy storage will continue to play an important role in the energy transition, and we will continue to be at the forefront across our core markets,” says Scatec CEO Terje Pilskog.
Building on the experience garnered from the hybrid solar and battery storage projects at Kenhardt, and the ongoing construction of Mogobe BESS, Scatec continues to actively support battery integration to stabilise the national grid.
“Dispatchable energy and grid infrastructure are now more important than ever, in the pathway to unlock the sustainability of South Africa’s current and future energy system,” adds Alberto Gambacorta, GM and EVP Sub-Saharan Africa, Scatec.
Scatec will own 50.01% of the equity in the project with Stanlib’s Greenstreet and Redstreet Funds owning 44.99% and a Community Trust holding 5%. Scatec will provide engineering, procurement, and construction (EPC), operations & maintenance (O&M), and asset management (AM) services to the project.
According to the Department of Mineral Resources and Energy, commercial close is expected to be concluded by the end of Q1 2026. The project will be located in the Free State Province.