Energising Progress with Africa’s Largest Standalone Battery Facility

This landmark transaction underscores Absa’s position as a leader in sustainable finance and our commitment to supporting South Africa’s energy resilience. Through innovative structuring and a deep understanding of energy transition finance, we acted as Joint Mandated Lead Arranger, Lender, Hedge Provider, Guarantee Provider, Agent and Account Bank on this R5.9 billion project.

Absa contributed R3.8 billion in funding to support Red Sands BESS (Pty) Ltd, a project developed by Globeleq and African Rainbow Energy. Once operational, the 153 MW / 612MWh facility in the Northern Cape will play a crucial role in easing pressure on the national grid, storing electricity during off-peak periods and releasing it when demand is high.

The project was procured under the Department of Mineral Resources and Energy’s Battery Energy Storage Independent Power Producer Procurement Programme and will operate under a 15-year capacity-based Power Purchase Agreement with NTCSA. Notably, its revenue structure ensures viability even when Eskom supply constraints limit battery charging - a critical feature in today’s energy landscape. Beyond its technical and financial sophistication, this transaction will have a meaningful broader impact on the economy by creating jobs, creating opportunity for skills development, and advancing the country’s B-BBEE goals.

More than just financing, this transaction represents our long-term commitment to Africa’s sustainable development and energy security.

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