Scatec ASA, a major provider of renewable energy, has successfully secured financial close for the Mogobe battery energy storage system in South Africa. The project, with a capacity of 103 MW and 412 MWh, is set to begin construction soon.
This achievement was made possible through a 15-year power purchase agreement (PPA) as part of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme. Scatec will be providing storage capacity to the National Transmission Company of South Africa to help balance the grid.
The total capital expenditure for the project is estimated to be around ZAR 3.0 billion (USD 170 million), with the majority being allocated to Scatec’s EPC contracts. The project will be funded by ZAR 2.7 billion (USD 154 million) in non-recourse project debt, arranged by Standard Bank of South Africa, with the rest coming from equity contributions.
In terms of ownership, Scatec will hold 51% equity in the project, while Perpetua Mogobe (RF) (Pty) Ltd will own 46.5% and a holding company of the Mogobe Local Community Trust will hold 2.5%. Scatec will also be responsible for the engineering, procurement, and construction (EPC) as well as operations and maintenance (O&M) and asset management (AM) services for the project.
Scatec’s CEO, Terje Pilskog, expressed excitement about the project, calling it a milestone for the company and the renewable energy transition in South Africa. The Mogobe BESS project is unique and showcases Scatec’s leading position in the renewable energy sector in the country.
Drawing from the success of their hybrid solar and battery storage projects at Kenhardt, Scatec plans to build one of Africa’s first and largest standalone dispatchable BESS systems near Kathu, Northern Cape. This project will support the sustainability of South Africa’s energy system and unlock more grid capacity for increased electricity access and renewable energy grid connections in the future.
Standard Bank of South Africa, as the lead arranger for the Mogobe BESS project, emphasized their commitment to financing innovative energy solutions that drive sustainable development and economic growth in South Africa and beyond. Their partnership with Scatec has been instrumental in advancing South Africa’s energy transition, following their successful collaboration on projects like Kenhardt.
Overall, the Mogobe BESS project represents a significant step forward in South Africa’s energy landscape and underscores the importance of dispatchable energy and grid infrastructure in ensuring a sustainable and reliable energy system for the country’s future needs.