South African Independent Power Producer Mulilo has emerged as a leading force in Round 3 of the country’s Battery Energy Storage Independent Power Producers Procurement Programme (BESIPPPP), securing 493 MW across four projects totalling 1,972 MWh—with 15-year power purchase agreements in place with Eskom.
Project Details & Capacity Breakdown
Under Round 3, Mulilo was awarded these four Free State-based BESS projects:
- Erfdeel: 123 MW / 492 MWh
- Retreat: 123 MW / 492 MWh
- Bloemhoek: 124 MW / 496 MWh
- Vanilla: 123 MW / 492 MWh
This follows their earlier success in Round 2, with now 12 out of 18 BESIPPPP awards, representing around 1.134 GW and 4.536 GWh capacity, accounting for 65% of the total awarded capacity.
Strategic Importance & Wider Context
Mulilo’s achievement comes amid South Africa’s efforts to strengthen its constrained electricity grid, integrate more renewables, and reduce dependence on ageing coal-fired power stations.
- Grid reliability: The new BESS units will supply critical services like frequency stabilisation, peak-shaving, and black-start support.
- Cost efficiency: Investment in BESS is driven by falling battery prices and increasing confidence in financing from South African lenders.
- Scale-up potential: Mulilo is also planning a broader pipeline—already operating 420 MW of wind and solar, with 764 MW under construction and a future target of 1,500 MW by end‑2025.
Looking Ahead
- Commercial close: Expected by January 2026, with full operation set for no later than January 2028 .
- Further expansion: With nearly two-thirds of BESIPPPP Round 3 capacity awarded to Mulilo, the company remains the dominant player in South Africa’s storage rollout.
- Continued momentum: A 40% average price drop for projects during Window 3 illustrates the rapid maturing of South Africa’s BESS market .
Mulilo’s commanding presence in BESIPPPP Round 3—securing nearly half a gigawatt of storage capacity, highlights South Africa’s accelerating move to strengthen its grid with renewables and storage. This wave of cutting-edge projects marks a pivotal shift away from fossil-based power, paving the way for a more resilient, low-carbon energy system.
