- Scatec ASA has been awarded preferred bidder status for the Mogobe (Ferrum) battery energy storage project totalling 103 MW/ 412 MWh under the first bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) in South Africa, by the Department of Mineral Resources and Energy.
- Scatec will dispatch power under a 15-year power purchase agreement (PPA).
“We applaud the South African government’s commitment and dedication to the battery storage procurement programme,” says Scatec CEO Terje Pilskog.
The request for proposal was issued on 7 March 2023, and bid submission on 2 August 2023. The programme aims to procure 513 MW of battery storage via the Department of Mineral Resources and Energy, across five specific Eskom (national utility) transmission substations in the Northern Cape province.
The estimated total capex for the battery energy storage project is ZAR 3.1 billion (USD 163 million) of which Scatec’s EPC contracts account for approximately 83%. The project will be financed by ZAR 2.6 billion (USD 138 million) of non-recourse project debt and the remaining by equity from the owners.
Scatec will own 51% of the equity in the project with Perpetua Holding owning 46.5% and a Community Trust holding 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.
According to the Department of Mineral Resources and Energy, commercial close is expected to be concluded by June 2024.
Author: Bryan Groenendaal
