Eskom selects contractors for 343-MW BESS project

South African power utility Eskom announced on Friday that it had selected South Korea’s Hyosung Heavy Industries Corp (KRX:298040) and China’s Pinggao Group to supply battery storage solutions for a 343-MW multi-site distributed battery energy storage system (BESS) project.

Both companies were awarded contracts following a competitive bidding procedure. The scope includes design, supply and installation, and operation and maintenance for five years, Eskom said.

The project will entail the installation of large-scale batteries with a capacity of 1,440 MWh per day and 60 MW of solar PV in two phases, with works spanning 12 sites across South Africa.

Phase 1 will see the installation of around 199 MW with 833 MWh of distributed BESS at eight Eskom distribution substation sites, and 2 MW of solar PV capacity. In Phase 2, 144 MW/616 MWh of storage will incorporated at four Eskom distribution and one transmission site, alongside 58 MW of solar PV.

The distributed BESS will be located in remote areas with limited access to Eskom’s distribution networks, but close to renewable energy plants operating as independent power producers (IPPs), the utility said.

Phase 1 sites are expected to be commissioned by June 30, 2023, with Phase 2 set to follow by December 2024.

The African Development Bank, New Development Bank, the World Bank and the Clean Technology Fund (CTF) are co-financing the BESS project.

“It is envisioned that gains from the BESS project will help to alleviate the pressure on the national electricity grid. The project will be used primarily for national peak shaving (managing demand) purposes for four hours a day for at least 250 days of the year. It will also be used secondarily for ancillary services and local network support,” Eskom said in its press release.

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