EDF Consortium Secures Funds for SA Battery Projects

• EDF International secures ZAR 7 billion for three major battery storage projects in South Africa, fostering local investment and greener energy solutions in the Northern Cape and North-West.

EDF Group’s subsidiary, EDF International, has secured financial close for three battery energy storage system projects in South Africa, totaling 257 MW capacity. The consortium, which includes Mulilo Energy Holdings, Pele Green Energy, and Gibb Crede, has raised ZAR 7 billion (USD 386.6 million) from local lenders Standard Bank and ABSA to support these initiatives.

The funds will primarily target projects in the Northern Cape and North-West provinces, specifically the 77 MW Oasis Aggeneis and 103 MW Oasis Nieuwehoop. Each project has a 5% ownership stake for local communities and will operate under a power purchase agreement with Eskom, South Africa's state utility.

What are the key features and impacts of EDF's battery storage projects in South Africa?

Here are some key features and impacts of EDF's battery storage projects in South Africa:

Key Features:

• Significant Capacity: The projects boast a combined capacity of 257 MW, positioning them as substantial contributors to South Africa's renewable energy landscape.
• Diverse Consortium: The multidisciplinary consortium includes experienced partners, such as Mulilo Energy Holdings and Pele Green Energy, enhancing the execution and operational capabilities of the projects.
• Community Engagement: Each project includes a 5% ownership stake allocated to local communities, promoting local economic participation and benefits.
• Strategic Location: The projects are situated in the Northern Cape and North-West provinces, areas known for their potential in renewable energy generation due to abundant sunlight and land availability.
• Power Purchase Agreement with Eskom: The energy generated from these projects will be sold to Eskom, South Africa's primary electricity supplier, ensuring a stable revenue stream for the project developers.
• Focus on Sustainability: The battery storage projects are designed to complement the integration of renewable energy sources, making South Africa's energy system more sustainable and resilient.
• Technological Advancement: The projects will incorporate advanced battery technologies to ensure efficiency, safety, and reliability in energy storage.

Impacts:

• Enhanced Grid Stability: By providing energy storage capacity, these projects will help stabilize the power grid, reducing the risks of outages and fluctuations in energy supply.
• Reduction in Carbon Emissions: The deployment of battery energy storage systems allows for better integration of renewable energy sources, which can lead to a significant reduction in CO2 emissions in the energy sector.
• Economic Growth: The investment of ZAR 7 billion (USD 386.6 million) will stimulate local economies, create jobs, and foster development in the regions where these projects are located.
• Energy Supply Diversification: These initiatives contribute to diversifying South Africa's energy mix, decreasing reliance on fossil fuels, and enhancing energy security.
• Empowerment of Local Communities: The inclusion of local communities as stakeholders allows them to benefit financially from the energy projects and encourages community development and support.
• Support for Renewable Energy Goals: The battery storage projects align with South Africa's national renewable energy targets and commitments to reducing reliance on coal-fired power generation.
• Replication Potential: The success of these projects can serve as a model for similar initiatives across the continent, driving further investment in renewable energy solutions throughout Africa.

By implementing these battery storage systems, EDF is not only contributing to the immediate energy needs of South Africa but also laying the groundwork for a more sustainable and resilient energy future.