Scatec ASA, a leading provider of renewable energy, has successfully reached financial close on the Mogobe battery energy storage system (BESS) facility, which has a capacity of 103 MW / 412 MWh. The company is now finalizing preparations to commence construction of the project.
The Mogobe BESS has been awarded a 15-year power purchase agreement (PPA) as part of the first bid window of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Under this agreement, Scatec will receive payments for making the storage capacity available to the National Transmission Company of South Africa (NTCSA), which will use it to help balance the grid.
The total estimated capital expenditure for the project is ZAR 3.0 billion (USD 170 million), with approximately 83% allocated to Scatec’s engineering, procurement, and construction (EPC) contracts. Financing will come from ZAR 2.7 billion (USD 154 million) in non-recourse project debt, arranged by Standard Bank of South Africa, with the remainder provided through equity contributions from the project owners.
Scatec will hold a 51% equity stake 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%. In addition to serving as the EPC provider, Scatec will also deliver 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,” says Scatec CEO Terje Pilskog.
“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,” adds 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,” says Rentia van Tonder, Head: Power – Corporate and Investment Banking, Standard Bank of South Africa.
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