MK party wants disclosure after de Ruyter’s right-hand man scores R9.5bn battery storage projects

The MK party says it wants full disclosure of bid adjudication records after a multi-billion energy tender was awarded to a company headed by former Eskom CEO Andre de Ruyter’s right-hand man, Jan Oberholzer.

On Friday, Electricity Minister Kgosientso Ramokgopa announced the appointment of five preferred bidders under the Battery Energy Storage Independent Power Producers Procurement Programme (BESIPPPP).

De Ruyter’s right-hand man

Mulilo Energy, chaired by Oberholzer, the Chief Operating Officer of Eskom and Scatec, was awarded five large battery storage projects in the Free State to develop 616 MW / 2,464 MWh of new battery storage capacity for R9.5 billion.

Oberholzer was appointed chairperson of Mulilo in September 2023, just two months after leaving Eskom as COO.

Out of the five available projects, four were awarded to Mulilo Energy

Mulio Energy was founded in 2008 by property developer Johnny Cullum and racing driver Chris Aberdein after a conversation about load shedding. Both remain on Mulilo’s board.

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MK party not happy

Ramokgopa praised Mulilo at Friday’s announcement as a “great South African success story” that shows the country can stand tall globally.

However, the MK party wants transparency in the bidding process

MK party national spokesperson Nhlamulo Ndhlela said they have written to Ramokgopa demanding full disclosure of the bid adjudication records within seven days.

“The uMkhonto weSizwe party is blowing the lid off what appears to be one of the most blatant acts of javelin throwing in post-apartheid public procurement, this time under the green veil of “renewable” energy.

“Should the Minister fail to comply, the MK party will immediately approach the courts to interdict and suspend these contracts,” Ndhlela said.

‘Billions’

Ndhlela said “this is no longer about megawatts.

“This is about the billions being funnelled out of our country under the false flag of progress, and the MK Party will not stand by and watch our state-owned entities being handed over to corrupt white monopoly capital interests”.

The Battery Energy Storage Programme is a critical initiative aimed at enhancing South Africa’s power system by providing essential ancillary services and increasing grid capacity through energy storage.

Projects

Other awarded projects located in the Free State will include:

• Erfdeel BESS (123MW/ 492MWh)
• Retreat BESS (123MW/ 492MWh)
• Bloemhoek BESS (124MW/ 496MWh)
• Vanilla BESS (123MW/ 492MWh)

The BESIPPPP Bid Window 3 was launched on 28 March 2024, with bids submitted on 28 November 2024.

Ramokgopa said the evaluation process was conducted by an Independent Bid Evaluation Committee “under strict security measures, took place at the IPP Office.”

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