Mulilo has reached financial close on its flagship Mercury Battery Energy Storage System (BESS) project, a 76MW / 304MWh facility located near Viljoenskroon, marking a key milestone in the country’s expanding energy storage sector.
The achievement follows the project’s recent commercial close and reflects strong execution momentum. The Mercury BESS forms part of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESSIPPPP) under Bid Window 2.
With this milestone, Mulilo continues to strengthen its position in the battery storage market, with a portfolio of nine awarded BESS projects across Bid Windows 2 and 3, totaling approximately 3,508MWh. The company is also involved in the Oasis BESS projects under Bid Window 1, which are currently under construction.
The Mercury project will operate under a 15-year power purchase agreement with the National Transmission Company South Africa and will connect to the Mercury Main Transmission Substation. Once operational, it is expected to enhance grid stability and support the integration of renewable energy into the national power system.
Strategically located in the Free State Province, the project is set to strengthen transmission infrastructure within a key corridor of South Africa’s central grid network, while also contributing to economic development in the Moqhaka Local Municipality.
The development has been supported by collaboration between public and private stakeholders, including the Department of Electricity and Energy, Independent Power Producer Office, Eskom, and NTCSA. Key shareholders in the project include Copenhagen Infrastructure Partners and Norfund.
Financial, legal, and technical advisory support has been provided by institutions such as Standard Bank, Absa, Nedbank, Bowmans, ENS, Fasken, Arup, and Pepper Tree Capital.
The project also brings together a consortium of partners, including Reatile Group as Mulilo’s BEE partner, along with a local community trust, supporting inclusive participation and long-term socio-economic benefits.
Commenting on the milestone, Jan Fourie stated that achieving financial close highlights the company’s capability to deliver critical energy infrastructure efficiently. He emphasized that battery storage projects such as Mercury will play a vital role in strengthening grid resilience and enabling further growth of renewable energy in South Africa.
The development also reflects the effectiveness of South Africa’s procurement programmes in attracting investment and advancing projects that support a more stable and sustainable power system.
