Preferred bidder selected for 103 MW/412 MWh battery energy storage project in South Africa

The Department of Mineral Resources and Energy has awarded preferred bidder status to Scatec ASA for the 103 MW/ 412 MWh Mogobe (Ferrum) battery energy storage project under the first bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) in South Africa.

The battery energy storage project is anticipated to have a total capital expenditure (capex) of ZAR 3.1 billion (USD 163 million), with Scatec's engineering, procurement, and construction (EPC) contracts constituting around 83% of this amount. Funding for the project will be sourced from ZAR 2.6 billion (USD 138 million) in non-recourse project debt, supplemented by equity from the project owners. Scatec will hold a 51% equity share, while Perpetua Holding and a Community Trust will own 46.5% and 2.5%, respectively. Scatec will act as the EPC provider and will also offer operations & maintenance (O&M) and asset management (AM) services.

The completion of the commercial close is anticipated by June 2024.