Envision Energy has been contracted to supply battery energy storage systems (BESS) for EDF Group’s three-project Oasis 1 portfolio in South Africa.
Chinese multinational renewable energy solutions provider Envision Energy announced the deal on Sunday (15 December).
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The Oasis 1 cluster represents a total 257MW/1,028MWh of lithium-ion (Li-ion) battery storage in the Northern Cape Supply Area of South Africa’s grid operator and national utility Eskom.
As reported by Energy-Storage. news, South Africa’s Department of Mineral Resources and Energy (DMRE) awarded an EDF Group consortium 15-year power purchase agreements (PPAs) for the three projects at the beginning of this year.
The wins came in the ministry’s Battery Energy Storage Independent Power Producers Procurement Programme (BESIPPPP). The systems will provide energy and grid stability services to Eskom over the term of their contracts, connecting to existing substations on the transmission system operator’s (TSO’s) network.
EDF’s consortium also includes European sustainable infrastructure investor Copenhagen Infrastructure Partners (CIP), and three South African companies: co-sponsor Mulilo, an IPP and renewables developer, green energy solutions provider Pele Energy Group and engineering firm Gibb-Crede, with the latter two holding equity stakes in the cluster.
Local community trusts will also hold a 5% stake in each project.
The Oasis consortium achieved financial close on the trio earlier this year, closing on the 77MW/308MWh Oasis Mookodi BESS project in October, before closing on Oasis Aggeneis, also 77MW/308MWh, and Oasis Nieuwehoop (103MW/412MWh), last month.
All three projects are scheduled to go online before the end of 2026.
Envision Energy claimed this is South Africa’s first gigawatt-hour scale BESS deal. The Chinese company will supply both DC and AC side solutions, including SCADA and energy management system (EMS) equipment.
Envision will supply its standardised 20-foot containerised 5MWh capacity battery storage units featuring 315Ah cells, while the company will also provide operations and maintenance (O&M) over 15 years.
Envision senior VP and president of international project lines Kane Xu said that the Oasis cluster “will effectively address the frequent load management of the current South African power grid, enhance grid stability, and reduce reliance on coal-fired power plants, supporting South Africa’s transition to a more sustainable energy system.”
In addition to battery storage technology, Envision’s core activities include wind turbine manufacture and green hydrogen solutions.
The total cost of the Oasis 1 cluster has been cited at around ZAR7 billion (US$372 million) in previous announcements by EDF. The consortium raised debt financing for the projects from Standard Bank of South Africa and ABSA.
The South African government is aiming to improve stability and reliability of a grid and energy system that suffers frequent blackouts and load-shedding events, while increasing the integration of renewable energy towards a 2050 net zero goal.
The Oasis cluster was among five projects awarded contracts through the BESIPPPP tender launched in March 2023. Norwegian developer Scatec also won, with a 103MW/412MWh project, while the fifth successful bidder and project have not been disclosed.
The South African government has launched three windows of the BESIPPPP in total to date, seeking around 615MW/2,460MWh of bids to award in each.