Scatec Secures South Africa Storage Bid

June 01, 2025

Key Figures & Findings: Norwegian independent power producer (IPP) Scatec ASA has secured preferred bidder status for the Haru Battery Energy Storage System (BESS) project in South Africa. This 123 MW/492 MWh project is part of the third bid window of the country’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). The Department of Mineral Resources and Energy confirmed the announcement. Scatec will be responsible for engineering, procurement, and construction (EPC), operations and maintenance (O&M), and asset management (AM) services. The company’s involvement in this strategic energy initiative aligns with South Africa’s broader efforts to stabilize its national grid and increase the integration of renewable energy.

Statistics & Insights: The project’s total estimated capital expenditure is ZAR 2.2 billion (about $120 million), with Scatec’s EPC contracts accounting for approximately 80% of this figure. The financing structure comprises 90% non-recourse project debt, and Scatec will hold a 50.01% equity share, while Stanlib’s Greenstreet and Redstreet Funds hold 44.99%, and a Community Trust holds 5%.

Future Implications: The commercial close is anticipated by the end of Q1 2026, with project completion and operations expected soon after. This development could enhance South Africa’s renewable energy resilience and reduce reliance on fossil fuels in the Free State Province.