Mulilo has achieved a significant milestone in South Africa’s energy sector after reaching commercial close on two large scale renewable energy projects in the Free State Province on the same day.
The projects fall under Bid Window 2 of the Battery Energy Storage Independent Power Producer Procurement Programme and Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme. The milestone confirms that all key commercial agreements are in place, allowing both developments to progress toward financial close and construction in the coming weeks.
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Commercial close marks a critical phase in project development, ensuring that legal and contractual frameworks are secured. While distinct from financial close, which enables access to funding and the start of construction, it provides the certainty required to move projects forward.
As part of the process, Mulilo signed an Implementation Agreement in the presence of Minister of Electricity and Energy Dr Kgosientsho Ramokgopa, alongside the Independent Power Producers Office. Power Purchase Agreements were also concluded with the National Transmission Company South Africa for both projects.
The Mulilo Mercury battery energy storage system will deliver 76 MW and 304 MWh of capacity near Viljoenskroon. The facility is expected to strengthen grid stability, support the integration of renewable energy, and contribute to local economic development in the Moqhaka Local Municipality.
The Middlepunt solar photovoltaic project will deliver 337 MWDC or 240 MWAC near Welkom. Once operational, the plant is expected to generate about 770 GWh of clean electricity annually, enough to supply around 325000 households. Electricity from the project will be supplied at a tariff of 458 ZAR per MWh, equivalent to about US$27 per MWh, positioning it among the most cost competitive renewable energy projects globally.
The projects are being delivered through collaboration between multiple stakeholders, including the Independent Power Producers Office, the National Transmission Company South Africa, Eskom, and various levels of government. Shareholders including Copenhagen Infrastructure Partners and Norfund, together with local partners and community trusts, continue to play a key role in supporting the developments.
Author: Bryan Groenendaal
LONGi’s high quality solar panels are available through an extensive distributor network in Africa. Link to the LONGi distributor list: LONGi Distributors List – Africa
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