- The award will enable Scatec to connect the battery to the Ferrum substation in the Northern Cape.
- The Mogobe battery project will cost ZAR 3.1 billion (USD 165.4m/EUR 151.7m).
Norwegian renewable power producer Scatec ASA has won the preferred bidder status for the 103-MW/412-MWh Mogobe/Ferrum battery energy storage project under the South African battery storage procurement programme. Scatec made this announcement yesterday. The award will enable Scatec to connect the battery to the Ferrum substation in the Northern Cape and dispatch power under a 15-year power purchase agreement (PPA).
The company will own a 51% stake in the Mogobe project. Its partners, Perpetua Holding and Community Trust, will own 46.5% and 2.5%, respectively. In addition, Scatec said it will serve as the project’s engineering, procurement, and construction (EPC) services provider. The firm will take charge of operations, maintenance and asset management services once the battery is up and running.
Scatec CEO Terje Pilskog stated, “This marks another significant achievement for Scatec in South Africa and for the transition to renewable energy in the country. Today’s award reaffirms our standing as a leading renewable energy player in South Africa. We applaud the South African government’s commitment and dedication to the battery storage procurement programme.” Furthermore, the Mogobe battery project will cost ZAR 3.1 billion (USD 165.4m/EUR 151.7m), with Scatec’s EPC contracts making up around 83%. The project will be funded with ZAR 2.6 billion in non-recourse project debt. The project’s owners will provide equity to cover the remaining amount.