Mulilo wins big on latest SA battery storage

June 02, 2025

From the newsletter

South African energy firm Mulilo Energy was awarded four projects, totalling 1,972 MWh for battery energy storage systems. That's approximately 80% of the total capacity sought in the third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Norwegian-based Scatec won the remaining project.

  • South Africa rolled out the BESIPPPP in 2023 to supplement the grid in the wake of growing intermittent renewables. Since then, 18 projects in three bid windows, totalling 6,976 MWh of storage, have been selected for development. 

  • The program has seen a significant reduction in project evaluation prices, with Bid Window 3 (BW3) prices showing a 40% decrease compared to Bid Window 1 (BW1) and an 8% decrease relative to Bid Window 2 (BW2).

More details

  • BESIPPPP Bid Window 3 announced by Minister of Electricity, Kgosientsho Ramokgopa (Pictured) is a site-specific procurement round designed to facilitate the acquisition of up to 616 MW of battery energy storage capacity, with all projects located in the Free State province. The National Transmission Company of South Africa (NTCSA) will act as the buyer for these projects under a 15-year agreement.

  • The Bid Window 3 round proved highly competitive, with a notable increase in the number of bids received compared to previous rounds. This intense competition resulted in significantly lower bid prices for companies seeking to secure projects. The five awarded projects are expected to inject a total investment of $531 million into the South African economy.

  • The government has several other programs geared towards making the country energy independent. The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), now in Round 7, has secured more than 1,760 MW of solar PV projects, with some already completed. This has pushed South Africa's renewable energy capacity added through IPPP to over 7,615 MW, positioning it at the top in Africa for renewable energy growth. It remains the only country to have rolled out massive private sector investment in Battery Energy Storage Systems (BESS).   

  • A few other countries, like Morocco and Egypt, are now adding standalone battery storage systems plants for grid stability after a period of heavy investment in solar and wind. Morocco recently announced plans to establish a 1,600 MW standalone BESS. AMEA Power plans to build a 1,500 MWh standalone BESS in Egypt.

  • Elsewhere, other African countries are piloting hybrid solar plants with storage. Kenya, through its energy developer KenGen, last month rolled out an advert seeking contractors for its maiden BESS. In West Africa, Ivory Coast, Togo, and Senegal are all building hybrid solar plants with storage. However, this trend remains on a smaller scale compared to North and Southern Africa.   

  • What's more interesting in South Africa is that local companies have a significant role in these BESS projects. While the first window saw international companies like Scatec, EDF, and Globeleq as major successful bidders, BW2 saw local company Mulilo Energy secure five out of eight of the projects, and in BW3, it secured four out of five. This is a clear indication of growing dominance. The company has significantly expanded its operations, now employing over 140, with 66 having been hired in the last year, based on LinkedIn data for senior staff.   

Our take

  • Battery energy storage projects are expected to grow with the increasing integration of intermittent renewable energy sources. This will be supported by the ongoing decline in battery prices and technology maturity in the global market.  

  • South Africa's energy supply issues will demand more battery storage solutions. These systems can be rapidly deployed to store excess energy and release it when demand peaks, supporting maximum resource utilisation and more revenue generation.   

  • As the country rolls out major projects, it becomes critical to support its local manufacturing sector. The government's current policies aim to support this, presenting an opportunity for these large-scale projects to procure a bigger share of their materials locally.