Africa’s Largest Battery Energy Storage Project Red Sands Signed Off and Ready to Commence

Updated 1st July 2025 – The Red Sands Battery Energy Storage System (BESS), set to be Africa’s largest of its kind, has officially reached commercial close. Developed by Globeleq, which is 30% owned by Norfund, in partnership with African Rainbow Energy, the 153 MW/612 MWh project was signed off in June 2025 in Cape Town. It will be located in South Africa’s Northern Cape Province and occupies a five-hectare site.

The Red Sands project will be the largest standalone BESS to reach this stage on the continent, designed to store power during off-peak hours and release it when demand is highest—providing essential grid stability and flexibility for South Africa’s electricity network.

A Boost for Energy Security and Climate Goals

The project was awarded preferred bidder status under South Africa’s Battery Energy Storage Independent Power Producer Programme (BESIPPP) in 2024. It marks a strategic milestone in enhancing energy security while supporting a low-carbon future.

Jonathan Hoffman, CEO of Globeleq, described the signing as “a landmark moment” and added:

“It highlights our ability to deliver large-scale, clean energy infrastructure that meets the continent’s evolving power needs.”

International Partnerships at the Forefront

The Norwegian Ambassador to South Africa, Mr. Gjermund Sæther, emphasized the importance of global cooperation, stating:

“This project underscores the value of public-private partnerships in solving energy challenges. Norway continues to be a significant investor in South Africa’s renewable energy sector.”

Economic Investment and Local Impact

African Rainbow Energy, a platform jointly owned by African Rainbow Energy and Power and Absa Bank, reiterated its commitment to community upliftment and sustainable energy delivery. CEO Brian Dames said:

“Red Sands supports our mission to use renewable energy to provide affordable electricity across Africa. It’s also part of our R3 billion investment pledge toward national development.”

Project Factsheet: Red Sands BESS

Location: Northern Cape, South Africa
Developer: Globeleq & African Rainbow Energy
Capacity: 153 MW / 612 MWh
Size: 5 hectares
Status: Commercial Close (June 2025)
Program: Battery Energy Storage IPP Programme (BESIPPP)
Technology: Standalone lithium-ion battery storage
Use: Peak load balancing, grid stability, ancillary services
Funding Partners: Norfund, Absa Bank
Investment Size: Part of a R3 billion investment drive

Key Highlights

Largest standalone battery energy storage project in Africa.
Will support South Africa’s national grid during peak electricity demand.
Reflects strong public-private and international partnerships.
Marks a major advancement in renewable infrastructure on the continent.

Red Sands, Africa’s largest standalone battery energy storage system coming to South Africa

6th April 2025 – Red Sands, Africa’s largest standalone battery energy storage system is set for construction in South Africa. It was recently announced that the 153 MW / 612 MWh project was awarded Preferred Bidder status in South Africa’s Energy Storage Capacity Independent Power Producer Procurement Programme (ESIPPPP). This announcement was made by Globeleq, the leading independent power company in Africa providing nearly 1,800 MW of energy in South Africa, Mozambique, Kenya, Tanzania, Cote d’Ivoire, Egypt and Cameroon.

The company owned the Red Sands project through the acquisition of the project’s initial developer African Green Ventures (AGV) from Magnora ASA, a Norwegian renewable energy investment company. AGV is a Cape Town-based renewable energy project development company that identifies and develops large-scale renewable energy projects. The company has produced and currently manages a project development pipeline of approximately 2GW.

The award of the preferred bidder

The Red Sands project was not initially named as a preferred bidder on November 30 2023, when Gwede Mantashe, the South African Minister for Minerals Resources and Energy announced the first four preferred projects selected following Bid Window One (BW1) of South Africa’s BESIPPPP.

The four projects announced by the minister were the Oasis Aggeneis (77 MW), Oasis Mookodi (77 MW) and Oasis Nieuwehoop (103 MW), bid by EDF Renewables and its partners, and the Scatec-led Mogobe BESS project (103 MW. The four projects, three of which would utilize lithium-ion battery technology, and one lithium-iron-phosphate technology had a combined capacity of 360 MW/1 440 MWh.

Minister Mantashe however mentioned that negotiations were under way with a fifth bidder. The goal was to have the entire 513 MW/2,025 MWh bid under this window assigned to independent power producers across the five Northern Cape substations selected by Eskom. Eskom is a government-owned company and South Africa’s main supplier of electric power producing and distributing almost all of the electricity used in the country.

Fast forward, on March 28 2024, the Department of Mineral Resources and Energy (DMRE) announced that negotiations with the fifth bidder had been concluded and that the Red Sands project had been selected as a preferred bidder for development at the fifth substation selected for the ESIPPPP Bid Window 1.

Development and cost of the Red Sands project

The Red Sands project will be built on approximately 5 hectares or 12 acres of land in the Northern Cape region. It will reportedly be connected to the grid through the Eskom Garona substation which will also undergo an upgrade to ensure that the full network support capabilities of the project’s batteries can be utilized.

Globeleq will work on Africa’s largest standalone battery energy storage system closely with leading global battery and balance-of-plant suppliers. According to the company, the project will require an investment of approximately US$300 million and will take 24 months to construct after financial close. The latter is expected to be reached sometime this year (2024).

Upon completion, the Red Sands project will be Globeleq’s first large-scale BESS project in South Africa where the group also owns and operates six solar photovoltaic plants and two wind farms with a total generating capacity of 384 MW.