Johannesburg, South Africa – Renewable energy provider Scatec ASA has secured the necessary funding to proceed with the construction of the R3 billion Mogobe battery energy storage system (BESS) facility near Kathu in the Northern Cape. This significant milestone marks a key step forward in South Africa’s renewable energy transition.
The Mogobe BESS project, which will have a capacity of 103 MW/412 MWh, was awarded a 15-year power purchase agreement (PPA) under the first bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). The PPA will see Scatec receive payments for providing storage capacity to the National Transmission Company of South Africa (NTCSA) to help balance the grid.
The project’s financing includes a R2.7 billion ($154 million) non-recourse project debt facility arranged by Standard Bank of South Africa, as well as equity contributions from the project owners. Scatec will hold a majority stake in the project, with Perpetua Mogobe (RF) (Pty) Ltd and the Mogobe Local Community Trust also participating.
The Mogobe BESS project is expected to create significant economic benefits for the local community, including job opportunities during construction and operation. It will also contribute to South Africa’s renewable energy goals and help reduce reliance on fossil fuels.
Scatec, a leading player in the renewable energy sector, has a strong track record in South Africa. The company is already involved in several other solar and battery storage projects in the country, including the Kenhardt solar farm.
The financial close for the Mogobe BESS project comes at a crucial time for South Africa, as the country seeks to transition to a more sustainable energy mix. The facility is expected to play a vital role in supporting the integration of renewable energy sources into the grid and ensuring a reliable and affordable electricity supply.