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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Electricity»Standard Bank facilitates financial close for Africa’s largest standalone battery storage project

    Standard Bank facilitates financial close for Africa’s largest standalone battery storage project

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    By Tapiwa Matthew Mutisi on July 25, 2025 Electricity, Energy, Funding, Investments, Projects, Renewable Energy

    Standard Bank has played a pivotal role in securing the financial close of the Red Sands Battery Energy Storage System (BESS)—a landmark project that now stands as the largest standalone battery energy storage initiative in Africa to reach financial close. It is also the most substantial project awarded under South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 1, marking a major milestone in the country’s energy transition.

    Developed by Globeleq, in partnership with Africa Rainbow Energy, the Red Sands BESS project is a cornerstone in South Africa’s efforts to decarbonize its national grid and build a more resilient, sustainable energy infrastructure. Strategically located in the Northern Cape, the facility will deliver 153MW of capacity and 612MWh of energy storage, enabling dispatchable power and a full suite of ancillary grid services.

    The project is backed by a 15-year Power Purchase Agreement (PPA) with the National Transmission Company of South Africa (NTCSA), a wholly owned subsidiary of Eskom. This agreement ensures long-term stability and integration into the national grid, supporting South Africa’s broader goals of energy security and carbon reduction.

    Standard Bank served as co-mandated lead arranger, lender, and co-hedging bank, providing a robust financial package that includes:

    • ZAR2.8 billion (~US$159 million) in senior debt facilities
    • ZAR532 million (~US$30.2 million) in ancillary debt facilities

    This financing structure reflects Standard Bank’s commitment to enabling infrastructure that drives long-term impact—enhancing grid reliability, accelerating decarbonisation, and fostering inclusive economic development.

    “Financial close on Red Sands BESS is a pivotal step in delivering Africa’s largest standalone battery storage project,” said Jonathan Hoffman, CEO of Globeleq Africa. “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.”

    Rentia van Tonder, Head of Power, Client Coverage at Standard Bank, added: “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.”

    The Red Sands BESS project is not only a technical achievement but also a symbol of Africa’s growing leadership in clean energy innovation. It sets a precedent for future battery storage developments and reinforces the role of financial institutions in driving climate-smart infrastructure across the continent.

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    Africa Battery Storage BESS Business Electricity energy Funding Investments Project Red Sands Battery Energy Storage System Renewable Energy Solar Energy Standard Bank Sustainability Technology
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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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