The ZAR5.4 billion ($328 million) financing of the Red Sands Battery Energy Storage System (BESS) in the Northern Cape of South Africa will be the largest standalone battery storage system on the African continent once completed.

Financed under the first bidding window of South Africa's Energy Storage Independent Power Producer Procurement Programme (ESIPPPP), it is expected to deliver 153 MW of firm capacity, unlocking grid stability, renewable integration, and load shifting for national energy security.

The facility will connect to the Garona substation and will deliver power to South Africa's national utility, Eskom, under a 15-year availability-based power purchase agreement.

According to Absa, which acted as joint mandated co-lead arranger, the deal sets a continental benchmark for next-generation grid infrastructure, delivering grid stability and renewable energy integration at scale while also positioning storage as the next frontier after wind and solar cost curve maturity, creating shifts for national energy security generation.

One awards judge said: "This entry is ambitious (the largest BESS being developed in Africa), addresses cash flow challenges for similar project types with comprehensive PPA structuring and credit enhancements, and most importantly addresses South Africa's critical need for decarbonisation in the energy sector with a focus on grid stability and addressing system bottlenecks to greater renewable energy deployment."