Financial close achieved for 103 MW/412 MWh battery energy storage system in South Africa

Scatec ASA has reached financial close for the 103 MW/412 MWh Mogobe battery energy storage system (BESS) facility and is now making final preparations to start construction of the project located near Kathu, Northern Cape, South Africa.

Mogobe BESS 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) in South Africa. The estimated total capex for the project is ZAR 3.0 billion (USD 170 million) of which Scatec’s EPC contracts account for approximately 83%. The project will be financed by ZAR 2.7 billion (USD 154 million) of non-recourse project debt, with the Standard Bank of South Africa as the mandated lead arranger, and the remaining by equity from the owners.

Scatec will own 51% of the equity in the project with Perpetua Mogobe (RF) (Pty) Ltd owning 46.5% and a holding company of the Mogobe Local Community Trust 2.5%. Scatec will be the engineering, procurement, and construction (EPC) provider and provide operations & maintenance (O&M), as well as asset management (AM) services to the project.