Large scale battery storage project financing options in South Africa 2026

Why should South Africa Invest in battery storage?

As South Africa grapples with the challenge of meeting its growing energy demands while transitioning to cleaner energy sources, Eskom’s initiatives in battery storage are critical for ensuring grid stability and reducing reliance on coal-fired power plants.

Where will the battery energy storage project be implemented?

The Project will be implemented at approximately 17 sites, located within or adjacent to existing distribution substations of Eskom, across four provinces of South Africa. The Battery Energy Storage Project (Project) provides a solution to address both challenges.

What is the largest battery energy storage system in Africa?

Unveiled in 2023, thanks to $195 million from the International Bank for Reconstruction and Development (IBRD) and $220 million from AfDB, this flagship project represents the largest battery energy storage system (BESS) on the African continent.

Will Red Sands be Africa's largest battery energy storage system?

The ambitious 153 MW/ 612 MWh Red Sands battery energy storage system (BESS) project, poised to become Africa’s largest standalone facility of its kind, has reached financial close, securing R5.4-billion in debt financing from Absa and Standard Bank.

Will solar batteries help South Africa's energy grid?

South Africa’s state-owned utility Eskom anticipates that these projects will showcase the effectiveness of batteries in facilitating the integration of renewable energy into the country's energy mix, while simultaneously easing the strain on the national electricity grid.

How much battery storage capacity does South Africa have?

By the end of the third tender, South Africa is projected to have a total battery energy storage capacity of approximately 3,183 MWh. This capacity is sufficient to power an estimated 250,000 homes during peak demand periods. The graph below illustrates the growth in battery storage capacity over the three tenders.