Norwegian renewable energy company Scatec has secured preferred bidder status for the Haru Battery Energy Storage System (BESS) project in South Africa.
The announcement was made under the third bid window of the Department of Mineral Resources and Energy’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP).
The Haru BESS project, with a storage capacity of 123MW and 492MW-hours, is designed to enhance grid stability by providing dispatchable energy to the National Transmission Company of South Africa (NTCSA). Under a 15-year capacity availability agreement, Scatec will receive payments for ensuring the battery storage is accessible to the national grid operator.
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BESS project
The total investment for the project is estimated at approximately US $120m, with around 80% allocated to engineering, procurement, and construction (EPC) services, all to be provided by Scatec. The company will also handle operations, maintenance, and asset management over the project’s lifecycle.
Scatec will hold a 50.01% ownership stake in the project. Stanlib’s Greenstreet and Redstreet Funds will jointly own 44.99%, while a Community Trust will retain a 5% share, ensuring local participation. The development will be financed through a structure of 90% non-recourse debt and 10% equity.
“This award reinforces our leadership in South Africa’s renewable energy market,” said Terje Pilskog, Chief Executive Officer of Scatec. “Battery storage is an essential pillar of the clean energy transition, and we are committed to scaling solutions that secure reliable power for the country.”
Alberto Gambacorta, Scatec’s EVP and General Manager for Sub-Saharan Africa, highlighted the strategic value of the project: “Reliable, dispatchable power and robust grid infrastructure are key to supporting South Africa’s long-term energy sustainability.”
Commercial close for the Haru BESS project is expected by the end of the first quarter of 2026, with construction taking place in South Africa’s Free State Province.