Scatec Reaches Financial Close on USD-170m Billion BESS Project in South Africa

Scatec ASA, a prominent renewable energy provider, has reached financial close for its Mogobe battery energy storage system (BESS) project in South Africa, with a total capacity of 103 MW/412 MWh. The project is now set to begin construction.

Awarded under the first bid window of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), the Mogobe BESS will operate under a 15-year power purchase agreement (PPA). Scatec will receive payments for providing storage capacity to the National Transmission Company of South Africa (NTCSA), which will use it to stabilize the grid.

The total capital expenditure for the project is estimated at ZAR 3 billion (USD 170 million). Scatec will finance the project with ZAR 2.7 billion (USD 154 million) in non-recourse debt, arranged by the Standard Bank of South Africa, while the remainder will come from equity contributions. Scatec will own 51% of the project, with Perpetua Mogobe (RF) (Pty) Ltd holding 46.5% and the Mogobe Local Community Trust holding 2.5%.

In addition to its role as the owner, Scatec will provide engineering, procurement, and construction (EPC) services, along with operations, maintenance, and asset management.

Scatec CEO Terje Pilskog highlighted the project as a milestone in South Africa’s renewable energy transition, emphasizing that the Mogobe BESS will be one of Africa’s largest standalone battery storage systems. The project is located near Kathu in the Northern Cape, close to major power demand centers.

Standard Bank, acting as lead arranger, praised the initiative as a key step in South Africa's shift toward cleaner energy and reiterated its commitment to supporting innovative energy solutions across the continent.