Scatec reaches financial close on 103 MW / 412 MWh BESS facility in South Africa

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  • Scatec ASA, a leading renewable energy provider, has reached financial close for the Mogobe battery energy storage system (โ€œBESSโ€) facility in South Africa totaling 103 MW / 412 MWh and is now making final preparations to start construction of the project.

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 Scatecโ€™s EPC contracts account for approximately 83%. 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 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.

โ€œThis 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,โ€ says Scatec CEO Terje Pilskog.

Author: Bryan Groenendaal

 

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