Latest news with #KgosientshoRamokgopa
News24
3 days ago
- Business
- News24
Ramokgopa announces preferred bidders for third battery energy storage
616MW of battery storage will be added across five sites in the Free State, with operation expected by 2028. The projects will store excess solar energy generated for use during the peak demand periods. Four of the five winning bids went to SA company Mulilo, reflecting increased local capacity and competitiveness. South Africa's push to stabilise its power grid through battery energy storage systems has advanced with the announcement of preferred bidders for the third bid window of the Battery Energy Storage Independent Power Procurement Programme. Electricity and Energy Minister Kgosientsho Ramokgopa announced this during a press briefing on Friday, confirming that 616MW of new battery storage capacity would be added to the national grid. This allocation is the final portion of government's 1 744MW target, as laid out in the Integrated Resource Plan (IRP). The latest bid window will see an investment of R9.5 billion, with project completion expected in January 2028. Battery storage to support solar during peak demand Ramokgopa explained that battery energy storage plays a critical role in improving grid flexibility by capturing excess electricity generated during the day, mostly from solar photovoltaic (PV) sources and discharging it during peak periods in the morning and evening. This approach aims to reduce reliance on costly diesel-powered open-cycle gas turbines during peak hours. 'During the day, our solar PV plants generate more electricity than we need.' Instead of wasting that surplus, these batteries will allow us to store it and release it later in the evening, when demand is at its highest. Kgosientsho Ramokgopa Currently, peak electricity demand occurs between 6am and 8.30am and again between 5.30pm and 7.30pm, with the evening peak particularly severe. The battery systems are designed to provide four hours of storage capacity, enough to cover both peak periods daily, adding up to 730 charge-discharge cycles annually. Five projects located in the Free State The 616MW capacity will be installed across five sites in the Free State, identified by the National Transmission Company of SA as strategically suitable for new grid support infrastructure. Each site has one preferred bidder assigned: Scatec was appointed for the Leander Substation site. Mulilo Energy was selected for the remaining four sites, including Everest, Harvard and Merapi. Ramokgopa noted the increasing competitiveness of domestic developers: 'We're seeing more South African companies winning bids in these programmes. Four out of five of the projects in this round have gone to a local developer, which is encouraging for the sector.' The minister also noted the geographic spread of the three bid windows to date: the first was concentrated in the Northern Cape and parts of North West; the second was mainly in North West and the third was focused on the Free State. Procurement process and technical considerations The third bid window was launched in March last year, following an open and competitive process. According to Ramokgopa, the process considered several technical criteria beyond pricing, including: Round-trip efficiency: The ability of batteries to return the same amount of electricity that was used to charge them. Rapid voltage change factor: A metric based on the battery's proximity to substations, affecting technical losses and bid scores. Government intends to improve fairness in future bid windows by pre-procuring land near substations to prevent distance-related disadvantages for bidders. The power purchase agreements signed with the preferred bidders will span 15 years, which aligns with global industry norms for battery storage contracts. Commercial close was targeted for January next year, with full commercial operation scheduled by January 2028. However, the minister encouraged developers to accelerate this timeline where possible. Programme outlook and future plans The 616MW announced on Wednesday concluded the initial 1 744MW target for battery energy storage outlined in the current IRP. This included: 513MW from bid window 1 615MW from bid window 2 616MW from bid window 3 The updated IRP, which will outline new targets and procurement rounds, is currently under review by the National Economic Development and Labour Council. SA is considered a continental leader in deploying battery energy storage and government aims to maintain this position as part of its broader transition to cleaner energy. However, Ramokgopa emphasised that coal remained the backbone of the country's energy generation capacity and plans involved a mix of energy sources rather than outright replacement. 'We are not pitting one energy source against another.'
IOL News
3 days ago
- Business
- IOL News
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.
News24
7 days ago
- Politics
- News24
SA to use coal in its energy mix for the foreseeable future: Ramokgopa
Electricity and Energy Minister Kgosientsho Ramokgopa has outlined a comprehensive and pragmatic approach to South Africa's evolving energy policy, emphasising energy security, affordability, sustainability and the continent's potential to play a leading role in the global energy transition. ️Welcome to Day 1 of #EnlitAfrica2025! ⚡️ The wait is over—Africa's premier power, energy, and water event kicks off today at the Cape Town International Convention Centre (CTICC)! Join over 200 expert speakers, 250+ exhibitors, and thousands of industry leaders as we explore… — Enlit Africa (@EnlitAfrica) May 20, 2025 Speaking at the Enlit Africa conference on Tuesday, which serves as a platform for the energy industry in Africa, bringing together important stakeholders to discuss and collaborate on energy solutions, Ramokgopa encouraged delegates to move beyond polarised debates about energy sources. 'It's not a question of renewables versus fossil fuels,' he said. We must adopt an inclusive approach where all energy sources work together to support our development goals. Kgosientsho Ramokgopa A complex, Afrocentric transition Ramokgopa situated the energy transition of SA within the broader African context, highlighting what he termed the 'energy quadrilemma', a uniquely African expansion of the traditional 'energy trilemma' which addresses energy security, access and environmental sustainability. In the African context, he argued, these three elements must be considered alongside the continent's socioeconomic development imperatives. 'We must define a transition that reflects African characteristics. Access to electricity remains a primary issue. Six hundred million people on the continent still live without electricity, which undermines development, healthcare and quality of life.' He warned that discussions overly focused on environmental sustainability without addressing access and affordability would fail to gain traction in Africa. 'People want to transition from darkness to light. They want reliable, affordable energy first. The source becomes secondary.' Technology and realism over ideology Ramokgopa said SA would continue to use coal in its energy mix for the foreseeable future, not out of disregard for climate obligations, but due to economic and infrastructural realities. Coal will remain the backbone of our energy system. But we are not ignoring our environmental responsibilities. 'We will use technology to reduce emissions from coal-fired power stations, learning from countries like Japan, which have managed to reduce emissions significantly through innovation.' He explained that South Africa was addressing the emissions problem, not the coal problem, using a 'principle of reality over subtraction'. Ramokgopa also reaffirmed SA's commitment to renewables, noting that renewable energy is expected to contribute around 80% of an estimated 300 gigawatts of new capacity on the continent. However, he warned of challenges such as the intermittent nature of renewables and grid stability, which will need to be managed through technological innovation and strategic planning. Public-private partnerships and capital allocation Ramokgopa identified misalignment in global capital allocation as a key obstacle to Africa's energy development. 'There's a perception that investing in African energy projects is risky, which leads to underinvestment, despite significant potential. This capital misallocation needs urgent correction.' He said African states often lack the fiscal space to make the large capital investments needed for energy infrastructure. 'We must find innovative ways to stretch our resources and leverage public-private partnerships. The private sector must be part of this journey, especially where sovereign balance sheets are constrained.' In this light, he acknowledged the importance of foreign partnerships and highlighted Africa's critical minerals, solar potential and access to green hydrogen corridors as valuable bargaining chips in global negotiations. 'When we sit at the table with the West, we must not act like beggars. We have the minerals they need. Let's have robust, mutually beneficial conversations.' Gas: A destination, not a transition Challenging prevailing global narratives, Ramokgopa argued that natural gas should not be viewed solely as a transitional fuel. 'In our context, gas is a destination. It complements renewables and provides reliable base load to ensure grid stability.' He cited the growing energy demand across the continent, expected to triple by 2040, as justification for long-term investment in gas infrastructure. 'Even if Africa brings all its known gas reserves online, we will still only contribute around 3% of global gas emissions. The science does not support claims that African gas development would significantly undermine global climate goals.' Tackling energy poverty On the domestic front, the minister spoke about ongoing efforts to address energy poverty in rural and informal settlements. He described the launch of hybrid solar systems and simplified grid connections aimed at reducing the cost of electrification. 'We've brought the per-connection cost down to R29 000 and are working to reduce it further to R25 000.' These solutions also include public lighting and internet access to support broader social and economic development. Ramokgopa urged scientists and engineers to continue innovating in ways that would stretch public funds and expand access. 'Help us shift the narrative. Let's find ways to make clean energy more accessible and affordable for the people who need it most.' A collaborative path forward In conclusion, the minister stressed the importance of cooperation, across nations, sectors and energy technologies. 'This is not just about South Africa; it's about shaping an African energy narrative that is inclusive, practical and focused on development.' He called on the international community to support Africa not just with funding but also with fair recognition of the continent's role and priorities in the energy transition. 'We have the sun, the minerals and the ambition. What we need now is partnerships based on equality and shared interests.'
Zawya
22-05-2025
- Business
- Zawya
Africa's Energy Future: Now!
Powering AI data centres, accelerating large-scale solar projects and leading the global energy transition are just three of the critical topics up for debate at next month's Africa Energy Forum (aef), kicking off for the first time in Cape Town, South Africa, 17–20 June 2025. Forum sponsor Sun Africa returns for the third consecutive year, a testament to its sustained commitment to powering Africa's clean energy future. For a full programme and to join the debate, visit: Under the theme of 'Africa United', and featuring hundreds of ministers, policymakers and executives from nations across the continent, the aef will spotlight the continent's expanding ambition and the urgent drive to reshape its own energy future. With South Africa now chairing the G20, the continent will gain a pivotal voice in global decision-making, making aef 2025 the launchpad for a bold message to the world: Africa knows what it needs, and it's ready to lead. This year's aef will welcome a significant number of new companies participating for the first time, expanding the community of innovators and investors at the event. It will also host delegations from 33 countries, comprising head of state, ministers, regulators, and other public sector leaders from across the continent. Confirmed speakers include the President of Ghana, John Dramani Mahama, South Africa's Minister of Electricity&Energy, Dr. Kgosientsho Ramokgopa, Nigeria's Minister of Power, Adebayo Adelabu and Noureddine Yassaa, Algeria's Secretary of State for Renewable Energies. The high-level line-up also features the current Senegalese candidate for the Presidency of the African Development Bank, Amadou Hott, plus senior ministers and policy makers from Liberia, Ghana, Malawi, Zambia, Guinea-Bissau, Zimbabwe, Ethiopia and Madagascar. This year's aef will focus on how the private sector can help move from ambition to implementation on Mission 300, connecting power to 300 million people by 2030. And, as demand surges from commercial and industrial sectors, the aef will also unpack the infrastructure, investment, and regulatory models needed to keep pace. Grounded in Ubuntu, the African philosophy of shared humanity, the event will call for a global energy transition that is cooperative, equitable, and Africa-led. 'Something urgent has to be achieved as we simply cannot have another 10 woeful years of investment into projects. No more [time] can pass with one side saying we 'we need guarantees' and the other side saying, 'we can't afford guarantees.' Time is THE DETERMINING FACTOR holding energy access back and this needs to change. Now is the time for Africa to unite behind common goals and common infrastructure!' Simon Gosling, Managing Director, EnergyNet 'The future of African power infrastructure starts with Sun Africa, and the conversation about Africa's energy future continues at the Africa Energy Forum. We are proud to be the Forum Sponsor of an event that will unite visionaries and unite people from across the continent.' – Adam Cortese, CEO, Sun Africa. Bringing together community and sport, the 2025 edition of eaf also features the Africa Challenge Cup, a special evening of football at Cape Town's iconic DHL Stadium. Four teams will face off in friendly matches under the floodlights, offering a chance for delegates, partners, and peers to connect in a spirited, relaxed setting alongside friends and family. The Youth Energy Summit (YES!), held in parallel with aef, is expected to welcome more than 4,000 participants, making it one of the largest gatherings focused on youth engagement in the African energy sector. Many companies are supporting the initiative not just as sponsors, but as active partners in youth participation across the continent. These include the DBSA, Nedbank, Pele Green Energy, Seriti Green, Siemens Energy, Genesis, and others from the energy and mining sectors. Distributed by APO Group on behalf of EnergyNet Ltd.. Notes: The main sponsors at this year's aef include Sun Africa, AKSA, Red Rocket, Globeleq, Nedbank and the World Bank. See Lead sponsors at this year's aef include the Africa Development Bank, AMEA Power, the British International Investment, BCG, EDF, Engie, the European Investment Bank, GE Vernova, Infinity Power, Standard Bank, Synergy Consulting and TotalEnergies. See For media inquiries and registration please email : Poliana Sperandio: poliana@ Sylvia Gaita: About the Africa Energy Forum (aef): The Africa Energy Forum (aef) is taking place in the Cape Town International Convention Centre, South Africa, 17-20 June 2025. The event is the continent's leading platform for energy sector stakeholders to collaborate, invest, and accelerate progress. In its 27th year, the aef brings together governments, developers, investors, and innovators to drive real-world solutions in energy access and sustainability. See
IOL News
22-05-2025
- Business
- IOL News
Powering possibility: SA's private sector-led grid expansion
South Africa is at a pivotal moment in its energy journey. Minister Kgosientsho Ramokgopa's March 2025 announcement on private sector involvement in grid expansion is more than a policy shift—it's a call for collaboration, innovation, and inclusion to redefine the nation's energy future. By inviting private players to partner with the government, this strategy paves the way for efficient, scalable, and equitable energy systems. Tabi T. Tabi is the CEO of Granville Energy, a Johannesburg-based renewable energy company dedicated to innovative, community-focused solutions. Through microgrids and sustainable technologies, it aims to drive inclusive energy access across South Africa and beyond. Granville Energy, a Johannesburg-based renewable energy leader, is already demonstrating what's possible. Its microgrid pilot in Orange Farm delivers decentralised, renewable energy to underserved communities, powering homes, businesses, schools, and public safety initiatives. This model has broader relevance. With more than 600 million people in sub-Saharan Africa lacking reliable electricity, large-scale grid extensions are often impractical. Modular microgrids offer an agile, sustainable solution—serving remote areas while supporting long-term development. Granville's community-driven approach, rooted in local knowledge and technology, provides a blueprint for South Africa and the continent. 'This policy shift challenges us to rethink scale, localise manufacturing, and prioritise underserved areas. No one should be left behind,' said Tabi T. Tabi, CEO of Granville Energy. ' South Africa's energy challenges demand collective action. Public-private partnerships are critical to accelerating supply and creating adaptable, affordable systems. Key priorities include: Aligned frameworks: Balancing national goals with private sector innovation. Integrated models: Blending renewable energy with existing infrastructure. Inclusive reach: Prioritising off-grid and underserved communities. Local empowerment: Supporting enterprises that create jobs and build trust. Progress isn't just about megawatts—it's about impact. Nearly 3.5 million South African households lack consistent electricity access, and 80% of the world's off-grid population resides in sub-Saharan Africa (IEA). Even in grid-connected areas, affordability and reliability remain barriers. Energy justice means designing systems that are responsive and people-centred. It's about ensuring every household, school, and small business has access to reliable power for growth and dignity. Granville Energy is committed to this vision and eager to collaborate with partners to shape a transformative energy future.
