A significant development in South Africa’s renewable energy sector has triggered fresh questions over governance and potential conflicts of interest. Mulilo Energy, a white-owned company chaired by Jan Oberholzer, the former Chief Operating Officer of Eskom, has emerged as one of the chief beneficiaries in the government’s third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). The programme is part of a wider effort to stabilise the national grid and support renewable energy integration through a R9.5 billion investment in lithium-ion battery storage capacity.
While the initiative is being lauded for its technical ambition and economic impact, the inclusion of Oberholzer at the helm of a successful bidder has raised eyebrows, given his previous executive role at Eskom—an entity closely linked to South Africa’s energy procurement environment.
🔴Former Eskom COO’s Company Gets IPP Tender🔴
SCANDAL 🔥🔥🔥
White-owned Mulilo Energy, of which its chairman is the former incompetent Eskom COO Jan Oberholzer, has been appointed as one of the successful IPP bidders for the country’s R9.5 Billion battery storage project. pic.twitter.com/dc2FcD1dO9
— The Insight Factor (@insightfactor) May 31, 2025
Concerns Over Post-Eskom Business Engagements
Oberholzer’s tenure at Eskom was marked by mounting operational challenges and allegations of mismanagement, although no legal findings of wrongdoing were made against him. Nonetheless, his re-emergence in a senior capacity within the private energy sector—mere months after leaving Eskom—has fuelled ongoing concerns about the revolving door between state institutions and private industry.
The overlap has led to questions about whether former insiders retain undue advantage in accessing strategic contracts. Critics argue that, even in the absence of direct impropriety, the optics are problematic for a country still wrestling with the legacy of state capture.
Jan Oberholzer, during his time as Eskom COO the Energy Availability declined from 78% to 59%, He was exposed in a R140bn Corruption and overpaid Stefanutti Stocks with R1bn. But with such a disastrous track record, Eskom still give their company, Mulilo Energy, a R9.5bn Tender. pic.twitter.com/Cq4pFx0L15
— Great Zulu👑 (@SuperiorZulu) May 31, 2025
Preferred Bidders and Project Details
Electricity and Energy Minister Dr Kgosientsho Ramokgopa announced Mulilo and Norwegian energy developer Scatec as the preferred bidders to develop a total of 616 MW/2 464 MWh of battery storage capacity across five Free State sites.
Mulilo secured four of these:
- 124 MW Bloemhoek BESS at Theseus (R1 801.24/MWh)
- 123 MW Erfdeel BESS at Everest (R2 157.29/MWh)
- 123 MW Vanilla BESS at Harvard (R2 169.80/MWh)
- 123 MW Retreat BESS at Merapi (R2 477.86/MWh)
Scatec was awarded the 123 MW Haru BESS project at Leander, with an evaluation price of R2 037.10/MWh.
All five projects are expected to reach commercial operation by January 2028, using lithium-ion battery technology.
Mulilo’s Growing Influence in South Africa’s Storage Sector
Mulilo has steadily increased its market presence in the energy storage domain, especially under the BESIPPPP framework. In fact, it now holds the majority stake in 65% of all projects awarded across the first three bid windows.
“To date, Mulilo has successfully participated in 12 of the 18 projects awarded under BESIPPPP, whilst taking majority ownership and a lead role in nine of the awarded projects,”
said CEO Jan Fourie.
“In total, this amounts to 1.134 GW/ 4.536 GWh in the BESS 1 to 3 Bid Windows, a total market share of 65%.”
“Being named Preferred Bidder in BESIPPPP Round 3 underscores our leadership in BESS and our commitment to building a low-carbon, resilient energy future the country.”
While these achievements are significant, Oberholzer’s leadership role may warrant scrutiny, particularly given the tight relationship between Eskom and the broader energy regulatory architecture. As COO, Oberholzer would have been privy to internal planning, procurement strategies, and grid expansion priorities—information that could arguably benefit a private consortium entering government-led procurement bids.
Minister Touts Progress, Skips Accountability Questions
During the announcement, Minister Ramokgopa highlighted the technical progress and economic viability of the projects but made no mention of Oberholzer’s role or concerns about potential conflicts of interest.
He confirmed that the five sites were selected by the National Transmission Company South Africa and reiterated the importance of storage infrastructure for grid stability.
“The Nedlac process should be concluded during June and… Cabinet would approve the update before the end of July,”
Ramokgopa said, referencing the upcoming Integrated Resource Plan (IRP) 2025, which will guide future battery procurement.
As with earlier bidding rounds, projects were judged primarily on price, but socioeconomic impact and transformation criteria also played a role in the final evaluation.
Transformation and Localisation Still a Key Priority
Despite the governance concerns, the awarded projects come with mandatory transformation stipulations. Project companies must have at least 40% black ownership. Construction contractors are required to be 30% black-owned, while operational contractors must reflect up to 42% black ownership.
Ramokgopa expressed a clear desire for a more inclusive energy sector:
“We want to see the emergence of fully-fledged black-owned IPPs in future.”
Further commitments include R3 billion in preferential procurement from B-BBEE companies and R3.7 billion in local content spending. Job creation projections suggest 852 positions during construction and operation, while R184 million will be allocated for local skills development and community support.
BESIPPPP’s Ongoing Impact
This third round of battery procurement follows earlier successful rounds in the Northern Cape and North West provinces. According to Elsa Strydom, interim head of the Independent Power Producer Office, this round saw a 40% reduction in evaluation prices compared to the initial round in 2023, driven by technological learning and improved lender confidence.
The first three bidding windows have resulted in a total investment of R30 billion and 1 744 MW of four-hour storage, aligning with the 2019 Integrated Resource Plan.
As the country gears up for its updated IRP and intensifies its renewable commitments, projects like these are expected to become increasingly central to South Africa’s evolving energy ecosystem.
But the sector’s credibility—and its ability to attract broad public trust—will depend not only on technical delivery but on transparency and fairness in procurement. The growing influence of former public officials in high-stakes private sector roles may warrant closer oversight to ensure accountability keeps pace with progress.
