October 25, 2024: Renewables developer Scatec said on October 18 it had reached financial close for its $170 million 103MW 412MWh Mogobe BESS in South Africa.

The Northern Cape project was awarded a 15-year power purchase agreement in the first bid outing under the country’s battery energy storage independent power producer procurement programme.

As part of the PPA, Scatec will receive payments for making the storage capacity available for the National Transmission Company of South Africa, which will utilise the capacity to balance the grid.

The estimated total capex for the project battery energy storage project is ZAR3 billion ($170 million), of which Scatec’s engineering, procurement, and construction contracts account for about 83%.

Scatec, which will own a 51% equity stake in the project, said the project will be financed by ZAR2.7 billion of non-recourse project debt, with the Standard Bank of South Africa as mandated lead arranger, and the remaining by equity from the owners.

CEO of Scatec, Terje Pilskog said: “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.”

Scatec, formerly Scatec Solar, is a Norwegian company that specializes in renewable energy systems.