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.
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