#South Africa #Cape Town #Globeleq #Red Sands BESS #African Rainbow

A New Era of Energy Storage in Africa

In a monumental step for renewable energy in Africa, Globeleq, in collaboration with African Rainbow Energy, has successfully reached financial close on the Red Sands battery energy storage project. This initiative, boasting a capacity of 153 MW and 612 MWh, is designated as the continent's largest standalone battery energy storage facility to secure financial closure.

The formalization of project agreements was accomplished at the 2025 Africa Energy Forum held in Cape Town. Key figures including the Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, alongside executives from both Globeleq and the National Transmission Company of South Africa (NTCSA), marked this significant achievement by signing essential agreements. This event emphasizes the dedication and collaboration of both public and private entities in advancing South Africa’s energy capacity.

One of the notable feats associated with this project is the extensive financing achieved, amounting to approximately ZAR 5.4 billion, equivalent to around US$ 300 million. This substantial support came from reputable financial institutions, Absa and Standard Bank, showcasing a strong backing for renewable projects on the continent. These financial partners are committed to Africa’s energy transition and aim to enhance the reliability and efficiency of the electricity supply throughout the nation.

The Red Sands BESS project is not merely about energy production; it is also expected to create about 250 jobs during its construction phase, with an additional 80 jobs anticipated during its operational life. This commitment to local employment underscores Globeleq’s mission to uplift communities and promote sustainable development by prioritizing local talent.

Strategically located near Upington in South Africa’s Northern Cape, the facility will span roughly five hectares and will provide electricity to NTCSA under a long-term 15-year power purchase agreement. Furthermore, it includes critical upgrades to existing infrastructure operated by Eskom and NTCSA, addressing significant transmission and distribution congestion in the region. These upgrades are essential as they will not only bolster the local grid but are also key to achieving a more dependable power system.

Globeleq, which leads the charge on this project, will oversee construction and management with its wholly-owned subsidiary—Globeleq South Africa Management Services. The project was initially developed by African Green Ventures, later acquired by Globeleq in 2023, emphasizing their integral role in advancing renewable initiatives.

Globeleq's CEO, Jonathan Hoffman, commented on the tremendous implications this project holds for Africa’s energy landscape, stating that the financial close is pivotal in establishing a resilient, low-carbon energy system. His sentiments were echoed by Brian Dames, CEO of African Rainbow Energy, who highlighted the strategic significance of this investment in harnessing renewable energy technologies to provide affordable electricity across Africa.

Moreover, these advancements align with the South African Investment Drive, which aims to amplify local economic growth through considerable investments in renewable technologies. The commitment from financial entities accentuates a vital push towards enhancing the continent's energy security while fostering economic development.

As the project progresses, the engineering and procurement phases will be managed by China Energy Engineering Corporation, while Sungrow, recognized globally for its innovation in inverter and energy storage technology, has been designated to provide essential technology and services. This collaboration not only reflects a mix of local and international expertise but also signifies an inclusive approach to energy solutions.

In conclusion, the successful financial closure of the Red Sands battery energy storage project is more than just a milestone for Globeleq; it is a harbinger of change for Africa’s energy landscape, associated with job creation, sustainable practices, and significant advancements in renewable energy. As this massive undertaking moves toward operational status, it is poised to play a crucial role in stabilizing energy supply and fostering a sustainable, clean energy future for South Africa and the continent at large.