Norwegian renewable power producer Scatec ASA announced on Friday that it has secured financial close for its ZAR 3 billion (USD 169 million/EUR 156 million) battery energy storage system (BESS) project located near Kathu in South Africa's Northern Cape province. The company is poised to commence construction of the facility, which has a capacity of 103 MW and 412 MWh.
Approximately 83% of the project's total estimated capital expenditures will be covered by engineering, procurement, and construction (EPC) contracts. The BESS will be financed with ZAR 2.7 billion in non-recourse project debt, arranged by Standard Bank of South Africa, with the remainder funded through equity contributions from the project owners.
Scatec will hold a majority stake of 51% in the project, while its partners—Perpetua Mogobe (RF) (Pty) Ltd and the Mogobe Local Community Trust—will hold 46.5% and 2.5%, respectively. In addition to acting as the EPC provider, Scatec will also oversee the operations and maintenance, as well as asset management services for the project.
The Mogobe BESS has secured a 15-year power purchase agreement (PPA) under South Africa's Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Notably, Mogobe is among the first two projects with Preferred Bidder status from the first bid window of the country's battery storage program to reach commercial close this week, representing a combined total of 180 MW and 720 MWh.
