| Project Detail |
The Battery Energy Storage Project (Project) provides a solution to address both challenges. The Project can store excess renewable energy in low demand periods and release the energy during peak hours, meeting the demand with energy from renewable resources and minimizing the use of fossil-fuel based generation. The Project will also reduce the power load on transmission network and therefore defer the investment needs for network augmentation. Besides, the Project can provide frequency support to the power grid.
Project Description
The components of the Project include 1,440 MWh of distributed battery storage, 60 MW of solar photovoltaic generation facility, and application software to optimize the performance of distributed battery storage. The Project will be implemented at approximately 17 sites, located within or adjacent to existing distribution substations of Eskom, across four provinces of South Africa.
Expected Benefits
The benefits of the Project include:
1. increased electricity supply of 525 GWh during peak demand hours, and
2. avoided CO2 emission of 90,000 tons every year.
Environmental and Social Aspect
The Project has been assigned category “B” in accordance with NDB’s Environmental and Social Framework (ESF). E&S impacts of the Project include potential leakage of battery electrolyte and soil contamination, potential pollution from waste battery disposal, loss of habitats and potential impacts to protected species at some sites. E&S risks and impacts will be mitigated by adherence to country system requirements.
Financing Aspect
The total cost of the Project is estimated to be up to USD 1,200 million with contingencies and financing costs, etc. NDB will finance ZAR 6,000 million, accounting for about 33% of the total cost. The remaining balance will be financed by the World Bank, African Development Bank and Eskom. |
