Africa's largest standalone BESS gets go-ahead

From the newsletter

Independent power producer Globeleq and energy supplier African Rainbow Energy have signed agreements with South Africa’s Department of Electricity and Energy and the National Transmission Company South Africa (NTCSA), paving the way for the 612 MWh Red Sands Battery Energy Storage System (BESS) in the Northern Cape to proceed.

• South Africa’s Independent Power Producer programme has been instrumental in enabling large-scale battery projects such as Red Sands BESS by providing a transparent, competitive framework and long-term off-take agreements.

• The model is now inspiring similar initiatives across Africa, with countries such as Senegal, Egypt, The Gambia and Botswana launching storage tenders, accelerating the region’s transition to flexible, renewable-driven grids.

More details

• The Red Sands BESS was awarded preferred bidder status in 2024 under South Africa’s Battery Energy Storage IPP Programme. The project will connect to Eskom’s Garona substation, which will be upgraded to maximise the network support capabilities of the batteries.

• South Africa’s battery storage market is entering a rapid growth phase, catalysed by grid instability and a maturing renewables sector. Besides Red Sands, the country is seeing a surge in standalone BESS projects, including the 300 MW Gainfar and Boitekong systems at Ngwedi and Morang substations, and the recent award of the Haru, Erfdeel, Retreat, Bloemhoek, and Vanilla BESS (totalling 600 MWh) to Scatec and Mulilo Energy. 

• Despite some progress, the national grid remains fragile, with the Energy Availability Factor (EAF) stuck around 57.5% and unplanned outages still exceeding the crucial 13,000 MW threshold. Load shedding, though briefly suspended in 2024 and early 2025, has returned, underscoring the need for fast, flexible solutions like BESS to stabilise supply.

• Red Sands will play a pivotal role in easing grid congestion in the Northern Cape, a region with abundant solar and wind resources but limited transmission capacity. By absorbing excess renewable generation during off-peak hours and releasing it during peak demand, the battery will not only improve local reliability but also enable more clean energy to flow onto the national grid, helping reduce curtailment and unlock new investment in renewables. 

• With Red Sands BESS, Globeleq adds a second large-scale battery storage project to its growing fleet, which already features 13 renewable energy plants spanning solar, wind, and hybrid systems across South Africa, Mozambique, Kenya, and Egypt, plus Kenya’s Menengai Geothermal project currently in development.

• International partners are now essential collaborators in Africa’s energy transition. Their involvement brings not just capital, but also technical know-how, project discipline, and global credibility, unlocking further investment and ensuring projects meet international standards.

• The Renewables Rising Projects Database confirms the trend that BESS projects are proliferating in South Africa. We have tracked about 4300 MW of battery energy storage projects in different stages of development since February 2025. 

Our take

• Red Sands BESS is a signal that Africa can deliver utility-scale battery storage at pace and scale. The project’s success is rooted in smart policy, innovative finance, and international partnership, showing the region what’s possible when the right ingredients come together.

• South Africa’s lingering load shedding and grid instability are reminders that storage must be scaled up urgently alongside renewables. For other African countries, adapt the IPP model, embrace blended finance, and make storage central to your energy strategy.

• With global investors and African innovators now pulling in the same direction, the continent has a real shot at leapfrogging to a flexible, resilient, low-carbon grid if governments act decisively and keep the momentum going.