Scatec's $170M Energy Project in South Africa

Key Figures & Findings: Norwegian renewable energy leader Scatec ASA, known for its substantial footprint in sustainable projects across Africa, has finalized financing for the 103 MW / 412 MWh Mogobe Battery Energy Storage System (BESS) in South Africa. Awarded a 15-year power purchase agreement (PPA) under South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), the project aims to support the National Transmission Company of South Africa (NTCSA) in stabilizing the national grid. Scatec’s involvement goes beyond ownership; it will manage engineering, procurement, and construction (EPC), as well as ongoing operations and maintenance, underlining its commitment to advancing sustainable energy infrastructure in Africa.

Statistics & Insights: The Mogobe project is estimated at ZAR 3.0 billion ( $170 million), with 83% of this capital directed to Scatec’s EPC services. Non-recourse project debt, arranged by Standard Bank of South Africa, contributes ZAR 2.7 billion ($154 million), enabling the project's viability and impact.

Future Implications: If successful, this initiative could lead to increased grid stability, supporting further renewable energy integration in South Africa. Also, the project's completion could mark a significant step toward a resilient, renewable-powered grid in the region by enhancing dispatchable energy capacity.

Source: African Development Bank