On 27 June 2025, Globeleq, in partnership with African Rainbow Energy, formally reached commercial close on the Red Sands battery energy storage project, a 153 MW / 612 MWh standalone installation near Upington in South Africa’s Northern Cape . The deal was finalized with the South African Department of Electricity and Energy and the National Transmission Company South Africa (NTCSA), marking a pivotal milestone in Africa’s clean‑energy landscape.
Why It Matters (Nut Graf)
- Scale & Significance
At 153 MW power capacity and 612 MWh storage, Red Sands becomes Africa’s largest standalone battery project, a continental first-powered commercial close .
Estimated at around US $300 million, it’s expected to be fully operational after 24 months of construction. - Grid Benefits
The facility will absorb surplus energy, especially from solar PV, during off‑peak times and dispatch it during peaks, alleviating grid congestion in the Northern Cape . It will also provide crucial ancillary services, frequency regulation, voltage support, strengthening grid reliability under the purview of Eskom and NTCSA . - Strategic Importance
Developed under South Africa’s Battery Energy Storage Independent Power Producer Programme (BES-IPPPP), Red Sands was among the preferred bidders in April 2024 . Its realization follows an earlier phase where Globeleq and partners missed commercial close on some projects under REIPPPP Bid Window 5. - Clean-Energy Transition
Red Sands reinforces South Africa’s pivot towards decarbonization and renewable integration. It sits alongside Globeleq’s solar, wind, hybrid PV+BESS in South Africa, Mozambique, Kenya, Egypt, and geothermal under‑development in Kenya.
The BES-IPPPP Scheme
The South African government launched BES-IPPPP to attract private investment in battery storage to complement intermittent renewables. Red Sands is among the first five projects approved under Bid Window 1. It addresses long-standing grid constraints by storing cheap solar and discharging it during evening demand peaks .
Stakeholder Roles
- Globeleq
Africa’s leading IPP, backed by British International Investment and Norfund, manages about 1.8 GW of generation across seven countries . - African Rainbow Energy
Invested in 1.1 GW of renewables, with R5 billion debt across 23 assets. Their partnership underscores local stakeholder financial clout . - NTCSA & Eskom
The Red Sands project includes grid‑upgrades at Eskom’s Garona substation, an essential step in enabling full battery network support. - International Support
British and Norwegian diplomats, representing their development finance bodies (British International Investment, Norfund), hailed the project as a climate‑finance triumph, rooted in strong international cooperation.
Quotes from Key Voices
- Jonathan Hoffman (Globeleq CEO):
“Commercial close on the Red Sands BESS is a landmark moment for Globeleq and for battery storage in Africa… integrating battery storage across our portfolio to support resilient, low‑carbon power systems across Africa.” - Brian Dames (African Rainbow Energy CEO):
“The investment in Red Sands… supports our objective to utilise modern and renewable energy technologies to provide affordable electricity… uplifting communities.” - Segomoco Scheppers (Eskom/NTCSA):
“The addition of the 153 MW facility will ensure that power… will charge the batteries during off‑peak periods…and discharge during peak periods… promoting grid stability by the supply of ancillary services.” - Diplomatic Remarks:
- British High Commissioner: lauded it as evidence of UK‑SA partnership for innovation and energy security.
- Norwegian Ambassador: emphasized its demonstration of international public‑private cooperation on energy and climate.
- British International Investment Executive: cited it as climate‑finance showcasing their continued African commitment.
- British High Commissioner: lauded it as evidence of UK‑SA partnership for innovation and energy security.
Broader Impacts
Red Sands represents a shift in Africa’s energy paradigm. Standalone BESS systems, unlinked directly to solar or wind farms, flower across the continent only now, often stalled by financing, grid readiness, or regulatory inertia. With its commercial close, Red Sands signals a new dawn: large-scale, grid-facing battery infrastructure is bankable in Africa.
Grid & Renewable Integration
By tackling peak demand and enabling better grid management, Red Sands unlocks potential for more variable renewables, solar and wind, particularly in high-insolation regions like the Northern Cape.
Economic & Social Returns
Funded jointly by local and international financiers, the project mobilizes approximately R3 billion in South African investment (by African Rainbow Energy), and similar support from international DFIs . Apart from strengthening energy security, the project promises local job creation and community participation during construction.
Challenges & Outlook
- Timeline Hurdles:
Although selected in April 2024, Red Sands only reached commercial close in June 2025, indicating regulatory, financing, or technical delays. In context, previous REIPPPP Bid Window 5 projects struggled; Red Sands is a rare success in that cohort. - Scaling Needs:
Despite its size, Red Sands alone won’t fix South Africa’s systemic grid issues. Scaling similar projects across the country, and continent is essential. - Financing Roadmap:
The project’s backing by development finance (UK, Norway) underscores the importance of DFI leverage in risk-laden green infrastructure. A diversification of commercial capital inflows will be needed going forward.
Also read: Nigeria Connects 6 Million to Electricity via Solar Mini-Grids in Transformative Energy Drive
What Comes Next
- Construction Phase – Over the next 24 months, deployment of battery modules, grid upgrades, and testing.
- Commercial Operation – Upon grid connection, Red Sands will begin supporting demand peaks, renewables balancing, and providing ancillary services.
- Monitoring & Expansion – If performance metrics meet expectations, the model may catalyze a wave of similar BESS tenders, especially under South Africa’s forthcoming bid windows.
