In early April 2026, Mulilo announced it had reached Commercial Close on two renewable energy projects on the same day. Both projects are located in the Free State Province and individually form part of Bid Window 2 of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) and Round 7 of the Renewable Energy Independent Power Producer Programme (REIPPPP).
The Mercury BESS project is located to enhance transmission infrastructure in a key corridor of South Africa’s central grid network.
Within a week, Mulilo announced Financial Close on the Mercury BESS facility, and Financial Close on the other project, the Middlepunt Solar PV project, followed soon afterwards in mid-April.
Commercial Close is a critical step in project development, confirming that all key commercial and legal agreements have been secured, and it paves the way for the projects to advance towards Financial Close, the next step, which unlocks project funding and enables construction to begin.
Reaching Commercial Close on the two projects, Mulilo signed the Implementation Agreement in the presence of the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, and the Independent Power Producers Office (IPPO), and finalised the Power Purchase Agreements (PPAs) with the National Transmission Company South Africa (NTCSA) for both projects.
Mercury BESS is a 76 MW / 304 MWh battery energy storage facility near Viljoenskroon, awarded under Bid Window 2 of BESIPPPP. The project will enhance grid stability, support renewable energy integration, and drive local economic development within the Moqhaka Local Municipality.
Middlepunt Solar PV is a 337 MWDC (240 MWAC) solar photovoltaic facility near Welkom, awarded under REIPPPP Bid Window 7. As well as supplying power to the national grid, the project will deliver local economic benefits to the Matjhabeng Local Municipality and support South Africa’s transition to a low-carbon energy system. Once operational, it is expected to generate around 770 GWh of clean electricity annually – enough to power about 325 000 households. The electricity delivered to the South African grid is priced at 458 ZAR/MWh, equivalent to 27 USD/MWh. This is an important step for South Africa, helping to make the energy transition from fossil fuels to renewables especially affordable. This pricing is noted as among the most affordable green energy delivered anywhere in the world.
Financial close on Mercury BESS project
Reaching Financial Close on the Mercury Battery Energy Storage System project represents an important step for Mulilo in its expanding battery energy storage portfolio, which now comprises nine awarded BESS projects across Bid Windows 2 and 3, totalling around 3 508 MWh. This is additional to its participation in the three Oasis BESS projects from Bid Window 1, which are already under construction. Collectively, these developments reinforce Mulilo’s position as a leading player in South Africa’s battery energy storage market.
Developed under a 15-year power purchase agreement with the National Transmission Company South Africa (NTCSA), the Mercury BESS project underscores the critical role of battery storage in enabling a more flexible, reliable, and resilient electricity system. Once operational, the facility will connect to the Mercury Main Transmission Substation (MTS), strengthening grid stability and supporting the integration of renewable energy.
Strategically located in the Free State, the project will enhance transmission infrastructure in a key corridor of South Africa’s central grid network and it will contribute to local economic development within the Moqhaka Local Municipality.
The progress achieved has been made possible through strong collaboration across the public and private stakeholders as noted above, and with the support of funding, legal and technical advisors that include Standard Bank, Absa, Nedbank, Bowmans, ENS, Fasken, ARUP and Pepper Tree Capital.
The project brings together a strong consortium of partners, including Reatile as Mulilo’s BEE partner and a local community trust, in a collaborative model that advances broad-based participation and delivers lasting socio-economic value.
CEO of Mulilo, Jan Fourie, said Financial Close on the project represents a key point strategically and operationally for the company.
“Achieving financial close on the Mercury BESS project demonstrates again Mulilo’s ability to deliver key energy infrastructure at pace. As battery storage becomes an increasingly important part of South Africa’s energy mix, projects like Mercury will play an important role in strengthening grid stability and supporting the continued growth of renewable energy.
“It also reflects the success of South Africa’s procurement programme in attracting investment and enabling projects that deliver meaningful impact. We are proud to contribute to this progress and to help build a more stable and resilient power system.
“We remain grateful to all our shareholders, partners and stakeholders for their continued support in making this possible.”
Financial close on the Middlepunt Solar PV project
On 14 April 2026, Mulilo announced that it had reached financial close on the Middlepunt Solar PV project.
This represents another defining moment for the company and the broader renewable energy sector, made possible by the coordinated efforts of stakeholders across local, provincial, and national government. Middlepunt is the first of the projects awarded under the South African government’s Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) Bid Window 7 to reach financial close.
On completion, the project is set to generate some 770 GWh of clean electricity annually which will be integrated into the national grid via the Everest Main Transmission Substation (MTS). This will result in the avoidance of 813 000 tonnes of carbon dioxide-equivalent emissions annually and will support the transition from fossil fuels to renewable energy at cost-effective pricing.
A 20-year Power Purchase Agreement (PPA) has been concluded with the National Transmission Company of South Africa (NTCSA), strengthening transmission reform and market evolution by unlocking new generation capacity.
The successful financial close on the Middlepunt Solar project also contributes to Mulilo’s strategic ambition of delivering 1 GW of new generation capacity per year and the project will form part of the company’s growing portfolio across wind, solar and battery energy storage technologies.
As with progress made on the Mercury BESS project, this achievement was made possible through close collaboration between the public and private sectors, including key stakeholders such as the Department of Electricity and Energy, the IPPO, NTCSA, and Eskom. The project also benefitted from the expertise of financial and legal advisors, including Standard Bank, Absa, Nedbank, PepperTree Capital, Bowmans, Fasken, and DKVG, as well as technical advisory support from Arup and insurance advisory services from Marsh.
The project also has the backing of Mulilo’s shareholders, Copenhagen Infrastructure Partners (CIP) and Norfund, alongside co-sponsors the Reatile Group and Perpetua as BEE partners, and a local community trust. This reflects Mulilo’s commitment to inclusive participation and long-term shared value creation in the Matjhabeng Local Municipality.
Commenting on this further achievement, Jan Fourie said: "Financial close of the Middlepunt Solar PV project marks a major step for South Africa’s renewable energy programme under Bid Window 7. Reaching this milestone required immense effort and collaboration from a wide range of stakeholders across government, industry, and our financial, legal and technical partners. We are grateful to all who have contributed to bring the project to this point.
"At Mulilo, we remain committed to powering the future through high-quality renewable energy projects that strengthen energy security, drive economic growth, and support South Africa’s just energy transition. Middlepunt demonstrates the strength of our partnerships and the confidence our stakeholders have in our ability to deliver at scale and at the lowest cost of electricity."
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