South Africa: Standard Bank backs Mulilo’s Mercury battery storage project
Standard Bank acts as co-mandated lead arranger, lender, co-hedging bank and account bank.
By Standard Bank
Standard Bank has supported the Mercury 76MW / 304MWh Battery Energy Storage System (BESS) project, developed by Mulilo Energy Holdings, reaching financial close. The project was awarded under the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 2.
The Mercury BESS is located in the Viljoenskroon area of South Africa’s Free State province. It has been developed under a 15-year power purchase agreement with the National Transmission Company South Africa (NTCSA).
The project is designed to provide 76MW of contracted capacity with an energy storage capability of 304MWh. It will connect via the Mercury Main Transmission Substation.
Standard Bank was appointed as co-mandated lead arranger, lender, co-hedging bank and account bank. The bank structured senior and subordinated debt facilities, alongside ancillary debt facilities, to support delivery of the project.
Mulilo’s shareholders include Copenhagen Infrastructure Partners (CIP) and Norfund. The project also includes co-sponsor Reatile Renewables and a local community trust.
Once operational, the Mercury project is expected to strengthen grid stability, support renewable energy integration and contribute to local economic development within the Moqhaka Local Municipality.