GLOBELEQ'S RED SANDS BATTERY ENERGY STORAGE PROJECT REACHES FINANCIAL CLOSE

CAPE TOWN, South Africa, July 1, 2025 /PRNewswire/ -- Globeleq, a leading independent power company in Africa and its project partner, African Rainbow Energy, have reached financial close on the 153 MW/612 MWh Red Sands battery energy storage project (BESS) in South Africa. The project is Africa's largest standalone BESS facility to reach financial close.

Signing of the project agreements with the Department of Electricity and Energy and the National Transmission Company South Africa (NTCSA), were recently completed by the Minister of Electricity and Energy, the Honourable Dr Kgosientsho Ramokgopa, Interim CEO of the NTCSA, Segomoco Scheppers, and Globeleq's CEO, Jonathan Hoffman, on the sidelines of the 2025 Africa Energy Forum in Cape Town.

Globeleq and African Rainbow Energy raised approximately ZAR 5.4 billion (~US$ 300m) in debt financing from Absa and Standard Bank. China Energy Engineering Corporation has been selected as the engineering and procurement contractor, with the BESS technology and long-term service agreement provided by Sungrow, a global leader in inverter and energy storage system solutions.  The Red Sands BESS is projected to create around 250 jobs during the construction phase and 80 jobs during operations, with a strong emphasis on sourcing local talent throughout both stages.

Located near Upington in South Africa's Northern Cape, the Red Sands BESS will span approximately five hectares and supply electricity to NTCSA under a 15-year power purchase agreement. The project includes significant upgrades to Eskom and NTCSA's grid infrastructure and will help ease transmission and distribution congestion in the region.

Globeleq has led the development and financing process, and will manage the project during construction and into operation through its wholly owned subsidiary, Globeleq South Africa Management Services. The project was originally developed by African Green Ventures and was acquired by Globeleq in 2023.  Red Sands BESS will be Globeleq's second utility scale BESS in its renewable portfolio adding to its 13 solar, wind and hybrid PV plus BESS plants in South Africa, Mozambique, Kenya and Egypt, and the Menengai Geothermal plant, currently under construction in Kenya.

Jonathan Hoffman, CEO, Globeleq observed: "Financial close on Red Sands BESS is a pivotal step in delivering Africa's largest standalone battery storage project. With strong backing from Absa and Standard Bank, and support from our public and private partners, we're advancing a more resilient, low-carbon power system. This project builds on our renewable energy leadership and reflects our commitment to sustainable growth across the continent."

Brian Dames, CEO of African Rainbow Energy said: "Reaching financial close on Red Sands is a proud moment in our partnership with Globeleq. With the support of Absa and Standard Bank, we are one step closer to achieving our objective of utilizing modern and renewable energy technologies to provide affordable electricity in South Africa and on the African continent, whilst uplifting communities. This investment also marks the substantial progress of the R3 billion commitment we have made as part of The South African Investment Drive."

Johan Koorts, Senior Banker: Resource and Project Finance at Absa added: "We are proud to have provided financing and corporate banking solutions to Globeleq and African Rainbow Energy for their 153 MW battery energy storage project. This transaction demonstrates Absa's commitment to the continent's energy transition goals and will support the reliability and efficiency of electricity supply in South Africa."

Sherrill Byrne, Head of Project Finance, Energy & Infrastructure at Standard Bank CIB also said: "As the biggest bank in Africa by assets, we take pride in our partnership with Globeleq and African Rainbow Energy to further the development of Africa's most significant standalone BESS facility. This project is set to significantly enhance South Africa's energy requirements and contribute to grid stabilisation."

About Globeleq
Globeleq, owned by British International Investment, the UK's development finance institution, and Norfund, Norway's development finance institution, is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating 1,794 MW in 17 locations across seven countries, with a further 485 MW in construction and more than 2,000 MW of power projects in development. More details at www.globeleq.com.

About African Rainbow Energy
African Rainbow Energy is a renewable energy platform owned by African Rainbow Energy and Power and Absa Bank. African Rainbow Energy is invested in 1,100 MW of renewable projects, of which 132 MW is under construction, and additionally owns a debt portfolio of R5 billion across 23 renewable energy assets, making it one of the largest and most diverse independently owned energy businesses in South Africa. More details at www.africanrainbowenergy.co.za,

About Absa Group Limited
Absa Group Limited (Absa Group) is listed on the Johannesburg Stock Exchange and is one of Africa's largest diversified financial services groups.  Absa Group offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance.  Absa Group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia and has insurance operations in Kenya and South Africa. Absa also has offices in the People's Republic of China, Namibia, Nigeria and the United States, as well as securities entities in the United Kingdom and the United States, along with technology support colleagues in the Czech Republic.   For further information visit www.absa.africa. 

About Standard Bank Group
Standard Bank Group is the largest African bank by assets, operating in 20 African countries, 4 global financial centres and 2 offshore hubs. Headquartered in Johannesburg, South Africa, we are listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.  Standard Bank has a 162-year history in South Africa and started building a franchise outside southern Africa in the early 1990s. Our strategic position, which enables us to connect Africa to other select emerging markets as well as pools of capital in developed markets, and our balanced portfolio of businesses, provide significant opportunities for growth.

As at 31 December 2024, Standard Bank Group had 20 million clients, employed over 50 000 people (including Liberty) and had over 1,150 points of representation and 5,500 ATMs across the African continent. The group's largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world's largest bank, with a 19.6% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.   For further information, go to http://www.standardbank.com