Standard Bank supports battery energy storage system project
Standard Bank has supported the financial close of the Red Sands Battery Energy Storage System project.
By Standard Bank
Standard Bank has supported the financial close of the Red Sands Battery Energy Storage System (BESS) project. It is the largest standalone BESS project in Africa to reach financial close and the biggest project awarded under South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 1.
The flagship project developed Globeleq and its project partner, Africa Rainbow Energy, is a strategic milestone in South Africa’s grid decarbonisation journey and its broader energy transition.
Located in the Northern Cape, the 153MW / 612MWh facility will provide dispatchable capacity and a comprehensive suite of ancillary services through a 15-year power purchase agreement with the National Transmission Company of South Africa (NTCSA), a wholly owned subsidiary of Eskom.
Standard Bank acted as co-mandated lead arranger, lender and co-hedging bank, extending a senior debt facility totalling ZAR2.8 billion (about $159 million) and ZAR532 million (about $30.2 million) in ancillary debt facilities. The transaction underscores our commitment to financing infrastructure that delivers lasting impact, improving grid resilience, supporting decarbonisation and enabling sustainable development.
“Financial close on Red Sands BESS is a pivotal step in delivering Africa’s largest standalone battery storage project. With strong backing from Standard Bank, and support from our public and private partners, we’re advancing a more resilient, low-carbon power system. This project builds on our renewable energy leadership and reflects our commitment to sustainable growth across the continent,” said Jonathan Hoffman, CEO, Globeleq Africa.
“We are proud to support pioneering clients like Globeleq and African Rainbow Energy in financing sustainable infrastructure. Red Sands reflects our commitment to enabling impactful solutions that unlock Africa’s energy potential,” said Rentia van Tonder, Head: Power, Client Coverage, Standard Bank.