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Globeleq’s 153MW BESS project reaches financial close
Absa and Standard Bank lend 5.4 billion rand for largest project of its kind in Africa
Michael Marray   9 Jul 2025

Globeleq, an independent power producer based in Cape Town, and its project partner African Rainbow Energy have reached financial close on the 153-megawatt/612-megawatt-hour Red Sands battery energy storage project ( BESS ) in South Africa. 

The project is the largest standalone BESS facility in Africa to reach financial close.

The company recently signed the project agreements with the Department of Electricity and Energy and the National Transmission Company South Africa ( NTCSA ) on the sidelines of the 2025 Africa Energy Forum in Cape Town.

Globeleq and African Rainbow Energy raised approximately 5.4 billion South African rand ( US$300 million ) in debt financing from Absa and Standard Bank.

China Energy Engineering Corporation has been selected as the engineering and procurement contractor, with the BESS technology and long-term service agreement provided by Sungrow, a global leader in inverter and energy storage system solutions.

Located near Upington in South Africa’s Northern Cape, the Red Sands BESS will span approximately five hectares and supply electricity to NTCSA under a 15-year power purchase agreement.

The project includes significant upgrades to Eskom and NTCSA’s grid infrastructure and will help ease transmission and distribution congestion in the region.

Globeleq has led the development and financing process, and will manage the project during construction and into operation through its wholly owned subsidiary, Globeleq South Africa Management Services.  The project was originally developed by African Green Ventures and was acquired by Globeleq in 2023. 

Red Sands BESS will be Globeleq’s second utility-scale BESS in its renewable portfolio, adding to its 13 solar, wind and hybrid PV plus BESS plants in South Africa, Mozambique, Kenya, and Egypt, and the Menengai geothermal plant, currently under construction in Kenya.

“Financial close on Red Sands BESS is a pivotal step in delivering Africa’s largest standalone battery storage project," says Globeleq chief executive officer Jonathan Hoffman. "With strong backing from Absa and 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.”