Strengthening South Africa’s energy security

Absa Corporate and Investment Banking acted as Joint Mandated Lead Arranger, Senior Lender, Hedge Provider and Agent Bank on the R 1.8 billion financing of Mulilo Energy Holdings’ 76 MW / 304 MWh Mercury Battery Energy Storage System (Mercury BESS) project. The project was awarded Preferred Bidder status under Bid Window 2 of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP).

Our financing commitment supports the full lifecycle of the project, from development and construction through to long‑term operations. Once operational, the Mercury BESS project will deliver availability‑based grid services designed to improve system reliability, support peak demand management and enhance the resilience of South Africa’s power network.

The successful closing of this transaction represents a significant milestone for the country’s renewable energy sector, and the project represents a critical component of the country’s efforts to stabilize the grid and safeguard energy security as renewable generation continues to expand. This pioneering transaction also supports Mulilo’s ambitious strategy to deliver 1 GW of new generation capacity annually, reinforcing the company’s role as a leading contributor to South Africa’s energy transition.

Beyond its financial impact, the Mercury BESS project will deliver significant socio‑economic benefits, strengthen community participation and align with South Africa’s Just Energy Transition objectives. This transaction underscores our ability to structure financing for complex energy solutions in a fast‑evolving market, while reinforcing Absa’s commitment to addressing the country’s energy challenges by mobilising capital to support sustainable growth, enhanced energy security and inclusive economic development across Africa.