Scatec ASA Secures Financial Close for 103 MW Mogobe Battery Energy Storage Project in South Africa

Scatec ASA, a leading renewable energy provider, has achieved financial close for the 103 MW / 412 MWh Mogobe battery energy storage system (BESS) and is preparing to begin construction.

The Mogobe BESS was awarded a 15-year power purchase agreement (PPA) as part of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Under this agreement, Scatec will receive payments for providing storage capacity to the National Transmission Company of South Africa (NTCSA), which will use it to balance the grid.

The estimated total capital expenditure for the project is ZAR 3.0 billion (USD 170 million), with approximately 83% attributed to Scatec’s EPC contracts. The project will be financed with ZAR 2.7 billion (USD 154 million) in non-recourse project debt, arranged by Standard Bank of South Africa, while the remainder will come from equity contributions.

Scatec will hold 51% equity in the project, with Perpetua Mogobe (RF) (Pty) Ltd owning 46.5% and a holding company of the Mogobe Local Community Trust holding 2.5%. Scatec will also serve as the engineering, procurement, and construction (EPC) provider, as well as managing operations and maintenance (O&M) and asset management (AM) services for the project. “This 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,” said Scatec CEO Terje Pilskog.

Replicating successes from our hybrid solar and battery storage projects at Kenhardt, we will proceed to construct one of Africa’s first and largest standalone dispatchable BESS systems. The project is located near Kathu, Northern Cape, close to high power demand centres.

“We are showing and supporting that dispatchable energy and grid infrastructure are cornerstones to the sustainability of South Africa’s current and future energy system. By unlocking more grid capacity, we are enabling further electricity access, as well as enabling more renewable energy grid connections in years to come,” added Roar Haugland, EVP Sub-Saharan Africa, Scatec.

“Standard Bank is proud to continue our long-standing partnership with Scatec as the lead arranger for the groundbreaking Mogobe BESS project. This facility represents a significant step forward in South Africa’s energy transition, building on our successful collaboration on projects like Kenhardt. We’re committed to financing innovative energy solutions that drive sustainable development and economic growth in South Africa and across the continent,” said Rentia van Tonder, Head: Power – Corporate and Investment Banking, Standard Bank of South Africa.