Construction of Mogobe battery energy storage system to begin

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Construction of Mogobe battery energy storage system to begin

Construction works on the Mogobe battery energy storage system (BESS) facility project in South Africa is set to begin. This follows a financial close reached by Scatec ASA.

The facility, developed under the first window of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), will play a crucial role in the country’s energy transition.

The project involves a 103 MW / 412 MWh capacity and represents a total investment of US $170M. Approximately 83% of this is covered under Scatec’s EPC contract. Financing comes from US $154M in non-recourse project debt, arranged by Standard Bank of South Africa, with the remainder funded by equity from the owners. Scatec has signed a 15-year power purchase agreement, under which the National Transmission Company of South Africa (NTCSA) will pay for the storage capacity to help balance the grid.

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Roar Haugland, EVP for Sub-Saharan Africa at Scatec, emphasized the importance of dispatchable energy and grid infrastructure for South Africa’s energy sustainability. The Mogobe BESS will enhance grid stability and allow for greater renewable energy integration over time. Scatec’s CEO, Terje Pilskog, described the project as a milestone in the company’s growth in South Africa, reaffirming its leadership in renewable energy within the country.

Standard Bank of South Africa’s involvement as the lead arranger highlights its commitment to financing transformative energy solutions, building on prior successful projects like Kenhardt. This initiative aligns with the growing global emphasis on accelerating the energy transition to meet urgent climate targets, as recently emphasized by IRENA. The Mogobe BESS project sets a precedent for battery storage development in South Africa, furthering the country’s efforts toward sustainable energy solutions.