November 19, 2019

Eskom releasing a Request for Bids for Battery Energy Storage Systems

Update: Eskom, in conjunction with the World Bank and African Development Bank, will soon be releasing a Request for Bids (RfB) for a technology-agnostic Battery Energy Storage Systems (BESS) to be implemented in two phases, with the goal of achieving a total of 1,440 MWh of battery storage.

Bid/offer due date: TBD – please follow the response instructions to receive RfB documents.

Overview: The Government of South Africa recently released the long-awaited Integrated Resource Plan (IRP) 2019, updating the energy forecast for South Africa from the current period to the year 2030. In the IRP 2019, provisions have been made for 2,088 MW of new energy storage capacity by 2030.  The planned battery solicitation follows a 2010 loan agreement with the World Bank and other lenders.  As part of the conditions of receiving funding, Eskom is obliged to facilitate accelerated development of large scale renewable energy capacity in support of the long term carbon mitigation strategy of South Africa. The BESS project will depend on the following two structured phases in order to be delivered:

  • Phase 1 will look into approximately 8 sites that will deliver 200 MW (800 MWh) of distributed battery storage. The plan is to complete this phase by December 31, 2020.
  • Phase 2 will look into around 10 sites that will deliver 160 MW (640 MWh) of distributed battery storage in addition to 60 MW of PV + Asset Performance Management (APM) system. The plan is to have this phase completed by December 31, 2021.

Response instructions: The U.S. Commercial Service and the USAID Power Africa in South Africa would like to support eligible U.S. firms in bidding on this project.  Please reach out to Mlamli Mjambana and Megan Taylor to receive more information on:

  • Additional documents on the structure, process and requirements that bidders will have to consider for the project
  • RfB documents as soon as they are out
  • Contact information for procurement unit
  • Project analysis by Power Africa
  • Additional information on how the U.S government can assist with advocacy for bidders and other forms of government support including financing, pilot projects, technical or business advice, etc.

Prospective bidders must take note that Eskom will take a procurement approach using Standard Procurement Documents (SPDs) as issued by the World Bank and African Development Bank, considering that the funding for the project came from the same institutions. This implies that there will be neutral tender specifications.

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