Oasis Mookodi BESS project reaches commercial close

The Oasis 1: Mookodi battery energy storage systems (BESS) project achieved a significant milestone with the signing of commercial close documents in Cape Town last week.

The project is one of the first standalone grid-scale, private-sector BESS projects in South Africa to be procured under government’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) and reach this stage. In parallel, Norwegian renewable energy company Scatec ASA has reached financial close for the R3 billion 103 MW Mogobe BESS to be constructed in the Northern Cape.

The Mookodi project, awarded less than a year ago by the Department of Mineral Resources and Energy, under the Energy Storage Independent Power Producers Procurement Programme, is led by a consortium including EDF Renewables, Pele Energy Group, Gibb-Crede, Mulilo and financial backers.

Financial close is expected in November 2024 with construction anticipated to take up to 24 months, EDF Renewables said.

The Mookodi BESS project is part of the larger Oasis 1 portfolio, located in the Northern Cape Supply Area, which is expected to play a key role in improving grid stability and integrating renewable energy. The portfolio includes three BESS projects – Mookodi, Aggeneis and Nieuwehoop – with a combined capacity of 257 MW and 1 028 MWh of storage.

The batteries will provide three key applications:

1. Grid constraint relief: The system will absorb excess power that cannot be evacuated, releasing it during peak periods to reduce strain on the grid and support the uptake of renewable energy.
2. Energy arbitrage: By storing cheaper energy generated during low-demand periods and releasing it during peak hours, the batteries will help minimise reliance on diesel generators.
3. Ancillary services: The system will assist in stabilising the grid by quickly providing or absorbing power during short-term fluctuations.

Each project within the Oasis 1 portfolio includes a 5% ownership interest for local communities through a community trust, ensuring the benefits extend beyond energy storage and contribute to regional development, EDF said.

The Mookodi BESS project forms part of the first of three procurement rounds under the government’s BESIPPPP.