The EDF Group, in collaboration with Mulilo, Pele Green Energy, and Gibb Crede, has reached financial close on three Oasis 1 battery energy storage system (BESS) projects.
The milestone, finalised on November 15 and 19, 2024, is a major step forward for South Africa’s renewable energy ambitions.
Awarded under the first round of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), the projects are set to be operational within 24 months. Once commissioned, the BESS installations will enhance the country’s energy security by stabilizing the electrical grid and supporting a reliable power supply.
In November 2023, the South African Department of Mineral Resources and Energy (DMRE) granted preferred bidder status to five projects under the first round of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP1).
Among these, the Oasis consortium, led by EDF Group, secured three of the five awarded projects.
The consortium includes co-sponsor Mulilo and equity partners Pele Green Energy and Gibb Crede. Each project incorporates a 5% ownership stake for local communities through a Community Trust, ensuring shared benefits and long-term socio-economic impact.
The Oasis 1 portfolio comprises the following projects:
- Oasis Mookodi (77MW capacity with 308MWh storage)
- Oasis Aggeneis (77MW capacity with 308MWh storage)
- and Oasis Nieuwehoop (103MW capacity with 412MWh storage)
The three projects have a combined capacity of 257 MW and a total storage capacity of 1,028 MWh. All are situated within the Northern Cape Supply Area.
Oasis Mookodi became the first project in the Oasis portfolio to reach financial close on November 15, 2024, followed by Oasis Aggeneis and Oasis Nieuwehoop on November 20, 2024.
The consortium secured 7 billion Rand (approximately $387 million) in debt financing from the Standard Bank of South Africa and ABSA to fund the projects. Under a 15-year Power Purchase Agreement with Eskom, South Africa’s public utility, the Oasis projects will contribute to the country’s energy stability and grid resilience.
The projects are vital to South Africa’s electricity infrastructure by addressing the need for greater flexibility to enhance grid stability. In 2023, the state-owned power utility Eskom reported a total energy shortfall of 14.4 TWh.
“We are very pleased to have achieved commercial and financial close on these projects. EDF is committed to developing decarbonized flexibility solutions to meet the needs of South Africa’s electricity system,” said Beatrice Buffon, Group Senior Executive Vice-President of the EDF International Division and CEO of EDF Renewables.
“Our projects will store and dispatch power to relieve grid constraints, enable energy arbitrage, and stabilize the grid by providing or absorbing power during short periods. I am convinced that this key milestone opens new opportunities to support the country’s energy transition.”
The EDF Group has been actively advancing decarbonized energy in South Africa, operating four wind farms with a combined capacity of 145 MW and developing additional wind, solar, and hybrid projects totaling 1 GW of installed capacity.
According to EDF, this demonstrates it’s ability to address the country’s electricity needs with low-carbon solutions, supporting clients in reducing their carbon footprint through tailored commercial and industrial (C&I) energy solutions.
