Major Milestone for Globeleq as Red Sands Battery Project Closes
Globeleq's Red Sands Battery Energy Storage Project Achieves Milestone
Globeleq, recognized as a leading independent power company in Africa, alongside its project partner, African Rainbow Energy, has successfully reached financial close on a transformational energy initiative—the Red Sands battery energy storage project. This facility, boasting a capacity of 153 MW/612 MWh, represents Africa's largest standalone battery energy storage system (BESS) facility to reach such a significant funding milestone.
Project Agreements and Financing Details
The completion of project agreements was marked by the participation of several key stakeholders, including the Minister of Electricity and Energy, the CEO of the National Transmission Company, and Globeleq's CEO. Their collaboration underscores the unwavering commitment to enhancing Africa's energy landscape.
Financially, Globeleq and African Rainbow Energy have secured approximately ZAR 5.4 billion, equivalent to roughly US$ 300 million, through strategic partnerships with leading financial institutions like Absa and Standard Bank. Noteworthy is the selection of China Energy Engineering Corporation for engineering and procurement services, coupled with cutting-edge BESS technology by Sungrow, a recognized global leader in energy storage solutions.
Employment Opportunities and Local Impact
The Red Sands project is anticipated to generate about 250 construction jobs and create an additional 80 positions during its operations. There is a deliberate focus on empowering local talent throughout both the construction and operational phases, thus supporting the local economy.
Strategic Location and Infrastructure Enhancements
This substantial battery storage facility will be located near Upington and is set to span five hectares. A critical component of the project involves supplying electricity to the national grid under a 15-year power purchase agreement. The project will also entail significant upgrades to the existing power grid, addressing potential congestion issues and enhancing overall transmission efficiency.
Leadership Insights on the Project's Significance
Globeleq's CEO, Jonathan Hoffman, stated that reaching financial close on the Red Sands BESS is a crucial progression towards delivering Africa's largest standalone battery storage initiative. He expressed excitement about the strong backing from their financial partners, emphasizing the project’s role in fostering a resilient and low-carbon power system as Globeleq continues its leadership in the renewable energy sector.
Similarly, Brian Dames, CEO of African Rainbow Energy, expressed pride in their collaborative efforts with Globeleq, highlighting that this financial close brings them closer to their goal of utilizing modern energy technologies for affordable electricity availability across the continent, thus uplifting local communities.
Commitment from Financial Partners
Absa’s Senior Banker, Johan Koorts, expressed pride in providing financial solutions and reiterated the importance of this transaction as a testament to Absa's commitment to energy transition goals in Africa. Likewise, Sherrill Byrne of Standard Bank noted that this project is vital in enhancing the energy landscape and stabilizing the grid across the region.
About Globeleq and African Rainbow Energy
Globeleq is recognized for its excellence in developing and managing independent power generation projects in Africa, backed by British International Investment and Norfund. Since establishing operations in 2002, Globeleq has cultivated a diversified portfolio, generating 1,794 MW across multiple countries, with substantial developments underway. African Rainbow Energy complements this with its investment in renewable projects totaling 1,100 MW.
Frequently Asked Questions
What is the significance of the Red Sands project?
The Red Sands battery project is Africa's largest standalone BESS, playing a crucial role in enhancing renewable energy storage capacity in the region.
Which organizations are involved in financing the project?
The project has been financially supported by Absa and Standard Bank, emphasizing commitments to renewable energy development.
What employment opportunities does the project create?
It is projected to create around 250 jobs during construction and 80 jobs during the operational phase.
How does this project impact local infrastructure?
The Red Sands project includes significant upgrades to local electricity infrastructure, addressing transmission and distribution challenges.
What are Globeleq's future plans regarding renewable energy?
Globeleq aims to expand its renewable energy portfolio adequately, building on its leadership and commitment to sustainable energy solutions across Africa.
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