- Scatec ASA, a leading renewable energy provider, has reached financial close on the Mogobe battery energy storage system (“BESS”) facility, which has a total capacity of 103 MW / 412 MWh.
- The estimated total capex for the battery energy storage project is ZAR 3.0 billion (USD 170 million), of which Scatec’s EPC contracts account for approximately 83 per cent.
Scatec ASA, a leading renewable energy provider, has reached financial close for the Mogobe battery energy storage system (“BESS”) facility, which has a total capacity of 103 MW / 412 MWh and is now making final preparations to start construction.
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 PPA, 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 ZAR 3.0 billion (USD 170 million), of which Scatec’s EPC contracts account for approximately 83 per cent. The project will be financed by ZAR 2.7 billion (USD 154 million) of non-recourse project debt, with the Standard Bank of South Africa as the mandated lead arranger and the remaining by equity from the owners.
Scatec will own 51 per cent of the equity in the project, with Perpetua Mogobe (RF) (Pty) Ltd owning 46.5 per cent and a holding company of the Mogobe Local Community Trust 2.5 per cent. Scatec will be the engineering, procurement, and construction (EPC) provider and provide operations and maintenance (O&M) and asset management (AM) services to the project.
“This marks a new milestone for Scatec in South Africa and the country’s renewable energy transition. 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,” says Scatec CEO Terje Pilskog.
Replicating successes from our hybrid solar and battery storage projects at Kenhardt, we will construct one of Africa’s first and largest standalone dispatchable BESS systems. The project is near Kathu, Northern Cape, and high power demand centres.
“We are showing and supporting that dispatchable energy and grid infrastructure are cornerstones to South Africa’s current and future energy system sustainability. By unlocking more grid capacity, we are enabling further electricity access and more renewable energy grid connections in years to come,” adds Roar Haugland, EVP Sub-Saharan Africa, Scatec.