Mulilo Energy, the company chaired by Jan Oberholzer—former Chief Operating Officer (COO) and acknowledged “right-hand man” to previous Eskom CEO Andre de Ruyter—is solidifying its role as a titan in South Africa’s burgeoning renewable energy sector. The Independent Power Producer (IPP) has recently secured monumental financial backing and dominated public tenders, despite facing criticism over its chairman’s high-profile move from the state utility to the private sector.

Financial Firepower: R8.3 Billion Secured

Mulilo’s aggressive expansion has been validated by major financial institutions and international investors.

In a landmark deal, Mulilo secured a corporate facility from Standard Bank with a total potential commitment of R7 billion. This innovative facility, unlike traditional project-specific financing, is designed to provide broad support for Mulilo’s strategic growth and accelerate the delivery of its ambitious pipeline. The financing will empower the company to pursue projects across multiple technologies and markets, including Battery Energy Storage Systems (BESS) and private off-take agreements.

Further reinforcing its position, the Norwegian development finance institution Norfund acquired a significant $75 million (approximately R1.3 billion) stake in Mulilo Energy Holdings. Norfund, which is owned by the Norwegian Ministry of Foreign Affairs, focuses its development mandate on job creation and improving lives, primarily in sub-Saharan Africa. Mark Davis, EVP of Renewable Energy at Norfund, expressed delight in supporting Mulilo’s mission to lead South Africa’s energy transition as the latest investment of the Norwegian Climate Investment Fund.

The company has seen a significant transformation since Copenhagen Infrastructure Partners (CIP) also acquired a stake in Mulilo two years ago.

Dominating the Battery Storage Market

Mulilo, alongside partner Scatec, was named preferred bidder for the third round of South Africa’s Battery Energy Storage Independent Power Producers Procurement Programme (BESIPPPP). Mulilo was a substantial winner in this programme, being awarded four large battery storage projects in the Free State.

These projects—Erfdeel BESS, Retreat BESS, Bloemhoek BESS, and Vanilla BESS—will deliver a combined 493 MW / 1,972 MWh of BESS capacity under 15-year power purchase agreements with Eskom. The total value of these projects is estimated at R9.5 billion.

This recent achievement follows Mulilo’s success in Round 2 of the BESIPPPP. With nine lead roles secured across 12 of the 18 total projects awarded under BESIPPPP 1-3, Mulilo has cemented its status as the country’s leading IPP in BESS technology deployment, claiming a commanding 65% total market share (1.134 GW / 4.536 GWh).

The Move from Eskom and the Political Backlash

Oberholzer was a prominent public figure during his tenure as Eskom’s COO from 2018 to 30 April 2023, serving during some of the utility’s most difficult years. After providing support on fixed-term contracts for the Koeberg Nuclear Power Station and Kusile Power Station projects, he formally parted ways with Eskom by mutual agreement on 31 July 2023.

Just two months later, in September 2023, Mulilo Energy appointed Oberholzer as a non-executive director and chairman of its board. Mulilo cited his globally recognised dynamic leadership, commitment to fostering positive change in the energy industry, and extensive experience leading large, complex, multi-billion-dollar projects as key reasons for his appointment. Oberholzer’s strategic vision is said to align seamlessly with Mulilo’s mission to accelerate the transition to cleaner, more sustainable energy in South Africa.

However, the awards and Oberholzer’s swift transition triggered significant controversy. Labour unions and political parties, including the National Union of Mineworkers (NUM) and the uMkhonto weSizwe (MK) Party, raised concerns about transparency and potential conflicts of interest. The NUM described the decision as a “direct and undeniable conflict of interest,” questioning the ethics of Oberholzer chairing a company benefiting from a programme (REIPPPP) he previously advocated for while at Eskom.

Minister of Electricity and Energy, Kgosientsho Ramokgopa, defended the awards, confirming the process was compliant with the Constitution and underwent rigorous due diligence. While acknowledging concerns about contract concentration, Ramokgopa maintained that “excellence is penalised” and the priority remains ensuring energy security and grid stability.

A Sustainable Energy Future

Mulilo’s continued triumphs support the South African government’s efforts to address a strained electricity network and reduce reliance on its ageing coal-fired power fleet.

BESS is crucial for the country, providing grid stability, enhancing the dispatchability of renewables, reducing load shedding, and optimising costs. Mulilo currently operates 420 MW of wind and solar projects and has 764 MW under construction, targeting more than 1,500 MW for Financial Close by December 2025.

Oberholzer stated that Mulilo is investing in long-term, diverse, and sustainable energy solutions, which is precisely what South Africa needs. The company aims to develop, own, and operate 5 GW of wind, solar, and battery storage projects over the next five years, which is more power than the fully operational Kusile Power Station produces. Oberholzer himself has noted that a push toward clean energy is “the right thing to do” and has suggested that allowing private participation in expanding Eskom’s grid is necessary given the magnitude of the required work.