Scatec ASA, a Norwegian company leading in clean energy solutions, has taken an important step in the development of its new Mogobe BESS project, which consists of an energy storage system using high-capacity batteries. This project is part of a 15-year power purchase agreement (PPA) with the National Transmission Company of South Africa (NTCSA), which will allow the balancing of the African country’s electricity grid.
The project, located in the Northern Cape Province, has a capital expenditure of ZAR 3 billion (USD 170 million) , of which Scatec covers 83% through engineering, procurement and construction (EPC) contracts. The financing is structured through a non-recourse debt facility of ZAR 2.7 billion, managed by Standard Bank of South Africa, with the remainder coming from contributions from the project owners.
Scatec advances energy storage in South Africa
Scatec holds 51% of the project, with Perpetua Mogobe (RF) Ltd holding 46.5% and a local community holding company holding 2.5%. In addition to being the EPC provider, Scatec will be responsible for the maintenance (O&M) and asset management (AM) of the Mogobe BESS, ensuring its efficient operation.
Terje Pilskog, CEO of Scatec, stressed that this project reaffirms its leadership in the transition towards renewable energies in South Africa, a market with a growing energy demand.
The Mogobe BESS system will be one of the first and largest of its kind on the continent, consolidating our position in the country.
Pilskog commented.
Impact on South Africa’s electricity infrastructure
The Mogobe BESS project is key to modernising South Africa’s energy infrastructure. By storing energy and releasing it when the grid requires it, it will help stabilise power supply in high-demand areas. This, in turn, will enable more renewable energy projects to be connected in the future, facilitating the country’s energy transition.
Roar Haugland, Scatec’s executive vice president for sub-Saharan Africa, said that such dispatchable infrastructure is essential to the sustainability of South Africa’s energy system , enabling broader and more secure access to electricity.
A collaboration that drives energy growth
Standard Bank, which has been a key partner in previous Scatec projects such as the hybrid system at Kenhardt, is also involved in financing Mogobe BESS. Rentia van Tonder, the bank’s Director of Energy, said the collaboration is part of the bank’s commitment to sustainable energy solutions that promote South Africa’s economic growth.
The Mogobe BESS project marks a significant step forward in Scatec’s strategy to deliver innovative energy solutions in South Africa and across the African continent.
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Source and photo: Scatec
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