Scatec reaches final reparations for South African BESS

Mogobe BESS was awarded a 15 year power purchase agreement (PPA) under the first bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) in South Africa. As part of the agreement, Scatec will receive payments for making the storage capacity available for the National Transmission Company of South Africa (NTCSA) which will utilise the capacity to balance the grid.

The estimated total CAPEX for the battery energy storage project is ZAR3.0 billion (US$170 million) of which Scatec’s EPC contracts account for approximately 83%. The project will be financed by ZAR2.7 billion (US$154 million) of non-recourse project debt, with the Standard Bank of South Africa as mandated lead arranger, and the remaining by equity from the owners.

Scatec will own 51% of the equity in the project with Perpetua Mogobe (RF) (Pty) Ltd owning 46.5% and a holding company of the Mogobe Local Community Trust 2.5%. Scatec will be the engineering, procurement, and construction (EPC) provider and provide operations & maintenance (O&M), as well as asset management (AM) services to the project.

“This marks a new milestone for Scatec in South Africa and for the renewable energy transition in the country. The Mogobe BESS project is a first of a kind and reaffirms our standing as a leading renewable energy player in South Africa. We continue to see attractive growth opportunities in the market based on the need for growth in power generation, our strong position in the country and our strong and competent local team,” said Scatec CEO Terje Pilskog.

Replicating successes from hybrid solar and battery storage projects at Kenhardt, the company aims to construct one of Africa’s first and largest standalone dispatchable BESS systems. The project is located near Kathu, Northern Cape, close to high power demand centres.

“We are showing and supporting that dispatchable energy and grid infrastructure are cornerstones to the sustainability of South Africa’s current and future energy system. By unlocking more grid capacity, we are enabling further electricity access, as well as enabling more renewable energy grid connections in years to come,” added Roar Haugland, EVP Sub-Saharan Africa, Scatec.

“Standard Bank is proud to continue our long-standing partnership with Scatec as the lead arranger for the groundbreaking Mogobe BESS project. This facility represents a significant step forward in South Africa’s energy transition, building on our successful collaboration on projects like Kenhardt. We’re committed to financing innovative energy solutions that drive sustainable development and economic growth in South Africa and across the continent,” continued Rentia van Tonder, Head: Power – Corporate and Investment Banking, Standard Bank of South Africa.

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