Scatec ASA, a leading provider of renewable energy, has successfully reached financial close on the Mogobe battery energy storage system (BESS) facility, boasting a capacity of 103 MW / 412 MWh. The company is now preparing to commence construction on this important project.
Project Overview
The Mogobe BESS has been awarded a 15-year power purchase agreement (PPA) as part of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Under the terms of the agreement, Scatec will receive payments for making the storage capacity available to the National Transmission Company of South Africa (NTCSA), aiding in grid balancing.
Financial Details
The total estimated capital expenditure for the project is ZAR 3.0 billion (approximately USD 170 million), with about 83% allocated to Scatec’s engineering, procurement, and construction (EPC) contracts. Financing will be secured through ZAR 2.7 billion (USD 154 million) in non-recourse project debt arranged by Standard Bank of South Africa, with the remainder funded through equity contributions from project owners.
Ownership Structure
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.
Significance for Renewable Energy in South Africa
“This marks a new milestone for Scatec in South Africa and for the renewable energy transition in the country,” stated Terje Pilskog, CEO of Scatec. He added, “The Mogobe BESS project is a first of its kind and reaffirms our standing as a leading renewable energy player in South Africa.”
Roar Haugland, EVP for Sub-Saharan Africa at Scatec, emphasized the importance of dispatchable energy and grid infrastructure, stating, “By unlocking more grid capacity, we are enabling further electricity access, as well as facilitating more renewable energy grid connections in the years to come.”
Role of Standard Bank
Standard Bank is proud to continue its partnership with Scatec as the lead arranger for the Mogobe BESS project. Rentia van Tonder, Head of Power – Corporate and Investment Banking at Standard Bank, remarked, “This facility represents a significant step forward in South Africa’s energy transition, building on our successful collaboration on projects like Kenhardt.”
Conclusion
The Mogobe BESS project represents a significant advancement in South Africa’s renewable energy landscape, supporting the transition to a more sustainable energy system while enhancing grid stability and capacity.
Suggested Sources
- [Scatec ASA Official Website]
- [Standard Bank of South Africa]
- [South African Government Energy Reports]
