R1.4bn Mercury BESS project scheduled to enter into operation in Q4 2027
An artist impression of the Mercury Battery Energy Storage System
Photo by Supplied
Independent power producer Mulilo reports that construction of its R1.4-billion Mercury battery energy storage system (BESS) project will begin soon and that the facility is scheduled to enter into commercial operation in the fourth quarter of 2027.
The 76 MW/304 MWh project is the first of five projects awarded to Mulilo during Bid Window 2 of the Battery Energy Storage Independent Power Producer Procurement Programme to have advanced to financial close.
Mulilo reports that H&I Construction has been appointed as the engineering, procurement and construction contractor for the project, which is located near Viljoenskroon in the Free State.
The Mercury BESS project was selected in December 2024 as one of eight preferred bidders during the public procurement round, when battery storage projects involving 615 MW/2 460 MWh and a total investment value of R12.8-billion were procured.
Mulilo was also subsequently awarded four BESS projects during Bid Window 3 that are now also being progressed towards financial close, and is partnering with EDF on three others awarded during Bid Window 1, which are under construction.
The company’s consolidated BESS portfolio involves 4 536 MWh and all projects are linked to South Africa’s public procurement programme.
However, Mulilo reports that it is also actively advancing a pipeline of private hybrid projects, comprising solar PV and BESS, linked to commercial and industrial offtakers.
The Mercury BESS facility will employ lithium-iron-phosphate battery technology, but the identity of the supplier has not yet been disclosed.
It is being developed under a 15-year power purchase agreement with the National Transmission Company South Africa and will connect to the Mercury main transmission substation.
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