How Mulilo and Scatec are transforming SA's power grid with a R9. 5 billion battery storage bid
nister of Electricity and Energy, Kgosientsho Ramokgopa, has announced Mulilo and Scatec as the preferred bidders
Image: Jairus Mmutle/GCIS
Minister of Electricity and Energy, Kgosientsho Ramokgopa, has announced Mulilo and Scatec as the preferred bidders for the country's third bid window of the battery energy storage program.
The program aims to help increase the country's electricity grid capacity and improve energy security. Last month, IOL reported that Ramokgopa announced a plan to address the country's ongoing energy crisis through private sector involvement in transmission infrastructure development.
He explained that the existing transmission network was unable to keep up with the country's growing renewable energy generation, particularly in areas such as the Northern and Western Cape.
The battery storage program, initiated in March 2024, is designed to store excess electricity generated primarily from solar power during the day and release it during peak demand times in the morning and evening.
In a press briefing on Friday, Ramokgopa confirmed that South African company Mulilo and Norwegian company Scatec have been chosen as the preferred bidders.
'For the site, the substation, that is Lienda, we have Scatec, who is a preferred developer. For Theseus, Everest, Harvard, and Merapi, we're happy to announce that Mulilo, which is a domestic outfit, has been identified as a preferred bidder.'
'I think what is significant about this round that we are announcing is that we are seeing that more and more South African companies are putting their hand up, and they are very competitive.'
The program is expected to add 616 megawatts of battery storage capacity across five sites in the Free State province.
Ramokgopa added that this investment will total R9.5 billion, including R3.7 billion in local content, supporting the country's economy by creating jobs and encouraging black ownership.
The projects are expected to start commercial operations by January 2028.
He further stressed the benefits for consumers and industries, adding that the country was making progress towards energy security.
'Once we bring down the cost of electricity, households won't face runaway tariff increases, and businesses will be more competitive.
"This battery storage program is part of South Africa's broader plan to increase renewable energy while keeping coal as the backbone of the grid. We are making steady progress toward energy security and a greener future.' he said.
IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
an hour ago
- IOL News
Navigating tough times: Huge Group's strategy for sustainable growth
South African investment holding company Huge Group is positioning itself for long-term growth, despite the challenging economic and political landscape, it said in its annual report released on Friday. With assets under management of R1.463 billion for 2024, the company is actively refining its investment strategy, focusing on ecosystems and technology enablement. Its investment portfolio companies comprise: - Huge TNS is a network enabler offering a comprehensive suite of data, voice, and network services, along with ICT hardware solutions for corporate businesses, small and medium enterprises (SMME) and small home offices. - Huge Connect recently embarked on a process of pivoting the business to incorporate a much broader, full-service IoT proposition for enterprise and SMME clients. - Huge Distribution is a customer-centered, channel-only telecoms and renewable energy solutions distributor serving the South African and African market. It is positioning itself as a leading importer and distributor of alternative energy products and solutions, including solar panels, inverters, and lithium batteries - Huge NXTGN. The latest addition to Huge Group's portfolio introduced a highly sophisticated enterprise network enablement capability into the portfolio and served as the inflection point for the evolution of its strategy in addressing the rapidly evolving needs of enterprise and SMME clients. AND provides agile cloud-native, turnkey enterprise enablement capabilities. James Herbst, the CEO, said, "As a South African investment company, we operate in a challenging environment. SA's small-cap sector has suffered from prolonged neglect. High interest rates, global and local political uncertainty, and a profoundly limited institutional appetite have all weighed on market sentiment. It is in this light that the outcomes HugeGroup has achieved are remarkable." He said like many of its peers, Huge Group's market price also trades at a substantial discount to its NAV (net asset value) – a reflection of the current investment environment, small cap sentiment, technical share imbalances (where the supply of small-cap shares exceeds the demand for them), rather than a reflection of the fundamental value of its investment portfolio. "The valuation gap which is currently extant, which is represented by the discount at which our shares trade to their net asset value, will begin to narrow as investors and analysts begin to understand our investment approach," he said. Veran Kathan, the chairman of Huge Group, said the South African operating environment had been much tougher for businesses this year. The Government of National Unity had faced challenges, global and local services inflation had been much stickier than expected (resulting in interest rates falling far slower than expected), and global geopolitical tensions had continued to rise. After Huge reviewed its investment philosophy, approach, models, and style "we realised how well Huge Group and its PICs (portfolio investement companies) are already positioned to innovate, and we realised that we have the ecosystem and technology to connect consumer brands to consumers in a cost-effective way, where convenience is a theme, where all the parties have a great experience, and where value is shared – and so Huge NXTGN was born. In pursuit of this innovation, we deployed considerable capital to Huge NXTGN," he said. On governance, in August 2024, Maria Heraty resigned as Huge Group's chief financial officer and Tamryn van Tonder, Huge Group's chief commercial officer, stepped in to fulfill her role Van Tonder said, as regards investment performance, given general market sentiment and volatility this year, Huge have opted for a more conservative approach tovaluing the investments within its investment portfolio, despite falling interest rates, which ordinarily have a positive impact on valuations. She said the investment performance was also negatively impacted by delays in the deployment of loan capital to its existing PICs. Looking forward, Huge remains resolute in its commitment to continue investing in "our ecosystems, while remaining equally focused on active cash management, the optimising of our investment portfolio's cost base, as well as initiatives focused on unlocking synergies and efficiencies across our investment portfolio," she said. BUSINESS REPORT
IOL News
5 hours ago
- IOL News
The merger of KZN's Gold Circle and Cape Racing has birthed Race Coast.
The merger of Gold Circle's operations in KwaZulu-Natal and Cape Racing from the Western Cape has given rise to an exciting new entity known as Race Coast. Founded under the auspices of the uMhlanga-based South African sports betting company Hollywoodbets, this collaboration has been met with resounding support from the nation's leading horse trainers, who believe it represents a bright future for the sport. Prominent South African champion trainer Justin Snaith, along with the globally-renowned horse racing ambassador Mike de Kock and accomplished trainer Dean Kannemeyer, have publicly endorsed Race Coast. Their collective enthusiasm highlights a refreshing wave of optimism within the racing community. The Cape Town-based Snaith emphasised that this initiative promises not only to elevate the standards of racing but also to foster a deeper connection between the sport and its fans. He reflected on the initial success in his province of a similar initiative, RaceCape, initiated by Cape Racing and Hollywoodbets. Snaith is celebrating a half-century of KZN winter season assaults for the famous family operation. His father Chris, still a key member of their team, first raided with a string from the Cape in 1975. 'That structure has proven a tremendous success! It has not only boosted ownership and field sizes in the Western Cape but has also provided trainers with additional funding to enhance their operations. "Now we mark the historic beginnings of Race Coast, which is another generous initiative by Hollywoodbets, aimed at promoting ownership in KwaZulu-Natal and the Cape while boosting the horse population,' said at the launch of Race Coast. Snaith reminded us of the past, recalling that many feared that horse racing in South Africa might not survive after the COVID-19 pandemic. 'However, the dedicated efforts of a few individuals have not only saved the sport but have also paved the way for an exciting future. It is a future that we can shape and reinvent, making it better for all stakeholders involved. "Race Coast marks the beginning of something special for the province and the future of horse racing in South Africa. On behalf of all our owners, staff, and horses, we want to express our sincere gratitude,' he concluded. Mike de Kock, hailed as one of the great trainers of his generation, echoed this sentiment. He expressed confidence that Race Coast would invigorate South African racing and attract a new generation of enthusiasts, emphasising the intrinsic value of promoting racing as both an entertainment platform and a cultural cornerstone. De Kock, who recently joined forces with his son Mathew in a training partnership, said: 'De Kock Racing has been around for a long time, but as a new training partnership, Mathew and I are excited to be involved with the innovators behind Race Coast. "We have already seen the evidence of their vision and commitment, and we have positioned ourselves to grow with them. We look forward to what the future holds.' Three-time Hollywoodbets Durban July winning trainer Kannemeyer said a refreshing wave of enthusiasm and hope have been felt tangibly in the horse racing fraternity. 'The improvement and upliftment have been in bricks and mortar, communication, and incentives and stakes across the spectrum in the Cape, and looking at the rejuvenated Hollywoodbets Greyville landscape. It is a revelation and a passion-driven work-in-progress, in simple terms," he said. "The Hollywoodbets Team have made a difference in a short time, and one gets a very warm feeling that the sport is in good hands. We are all united under the flag of future prosperity, and, on behalf of our owners and the DKR team, I extend sincere onward and upward best wishes to Race Coast.'
IOL News
7 hours ago
- IOL News
WATCH: Elon Musk's bizarre departure from Trump's administration - with a black eye
Elon Musk bid farewell to Donald Trump in the Oval Office appearance, sporting a black eye and dismissing drug abuse claims while vowing to remain a close advisor. But many people were more interested in the livid black bruise around Musk's right eye. "I look forward to continuing to be a friend and advisor to the president," he said. South African-born Musk, wearing a black T-shirt with the word "Dogefather" in white lettering and a black DOGE baseball cap, said many of the $1 trillion savings he promised would take time to bear fruit. "He's going to be back and forth," said Trump, showering praise on the tech tycoon for what he called the "most sweeping and consequential government reform program in generations." But Trump insisted that Musk was "really not leaving" after a turbulent four months in which his Department of Government Efficiency (DOGE) cut tens of thousands of jobs, shuttered whole agencies and slashed foreign aid. As the world's richest person bowed out of his role as Trump's cost-cutter-in-chief, the Republican hailed Musk's "incredible service" and handed him a golden key to the White House. Billionaire Elon Musk bade farewell to Donald Trump in an extraordinary Oval Office appearance Friday, sporting a black eye, brushing aside drug abuse claims and vowing to stay a "friend and advisor" to the US president. Speculation about the cause was further fueled by accusations in the New York Times Friday that Musk used so much of the drug ketamine on the 2024 campaign trail that he developed bladder problems. 'Punch me' The SpaceX and Tesla magnate said that his son was to blame for the injury. "I was just horsing around with lil' X, and I said, 'go ahead punch me in the face,'" 53-year-old Musk said. "And he did. Turns out even a five-year-old punching you in the face actually is..." he added, before tailing off. Musk, however, dodged a question about the drug allegations. The New York Times said Musk, the biggest donor to Trump's 2024 election campaign, also took ecstasy and psychoactive mushrooms and traveled with a pill box last year. Musk, who has long railed against the news media and championed his X social media platform as an alternative, took aim at the paper instead. "Is that the same publication that got a Pulitzer Prize for false reporting on the Russiagate?" said Musk, referring to claims that Trump's 2016 election campaign colluded with Moscow. "Let's move on. Okay. Next question." Later in the day, when a reporter asked Trump if he was "aware of Elon Musk's regular drug use," Trump simply responded: "I wasn't." "I think Elon is a fantastic guy," he added. The White House had earlier played down the report. "The drugs that we're concerned about are the drugs running across the southern border" from Mexico, said Trump's Deputy Chief of Staff Stephen Miller, whose wife works for Musk. Musk has previously admitted to taking ketamine, saying he was prescribed it to treat a "negative frame of mind" and suggesting his use of drugs benefited his work. 'Disappointed' The latest in a series of made-for-TV Oval Office events was aimed at putting a positive spin on Musk's departure. Musk is leaving Trump's administration under a cloud, after admitting disillusionment with his role and criticizing the Republican president's spending plans. It was a far cry from his first few weeks as Trump's chainsaw-brandishing sidekick. At one time Musk was almost inseparable from Trump, glued to his side on Air Force One, Marine One, in the White House and at Trump's Mar-a-Lago resort in Florida. The right-wing magnate's DOGE led an ideologically-driven rampage through the federal government, with its young "tech bros" slashing tens of thousands of jobs. DOGE's achievements fell far short of Musk's original goal of saving $2 trillion dollars. The White House says DOGE has made $170 billion in savings so far. The independent "Doge Tracker" site has counted just $12 billion while the Atlantic magazine put it far lower, at $2 billion. Musk's "move fast and break things" mantra was also at odds with some of his cabinet colleagues, and he said earlier this week that he was "disappointed" in Trump's planned mega tax and spending bill as it undermined DOGE's cuts. Musk's companies have suffered Tesla shareholders called for him to return to work as sales slumped and protests targeted the electric vehicle maker, while SpaceX had a series of fiery rocket failures. AFP
