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Scatec frees up resources to launch battery storage for transmission grid
21 Oct 2024
Scatec has reached financial close for the Mogobe Battery Energy Storage System (BESS) project. This announcement comes shortly after the Competition Commission gave its approval to the Greenstreet 1 acquisition of Scatec’s Solar SA 164 and Solar SA 165 PV operations.
Greenstreet 1, an investment fund managed by Stanlib Infrastructure Fund II and owned by the Standard Bank Group, will acquire the Scatec 164 and Scatec 165 purpose vehicles holding solar PV independent power producer (IPP) projects.
These IPPs, operating under South Africa's Renewable Energy Independent Power Producer Programme (REIPPPP), include Project Dreunberg, Project Linde, and Project Kalkbult.
The Competition Commission has determined that the acquisition is unlikely to reduce competition or raise public interest concerns, giving the transaction the green light without conditions.
Pivot to battery storage
Following this news, Scatec has now confirmed the financial close for its Mogobe BESS project – a 103MW/412 MWh facility.
Mogobe was awarded under the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), and will provide critical storage capacity to the newly formed National Transmission Company of South Africa (NTCSA), helping balance the grid as part of the country’s renewable energy strategy.
The project has an estimated capital expenditure of R3bn that will be funded by non-recourse project debt of R2.7bn that is arranged by Standard Bank, along with equity contributions.
Community ownership
Scatec holds a 51% equity stake, while Perpetua Mogobe owns 46.5%, and the Mogobe Local Community Trust holds the remaining 2.5%.
Scatec will also serve as the engineering, procurement, and construction (EPC) provider, alongside operations, maintenance, and asset management services.
"This marks a new milestone for Scatec in South Africa and reaffirms our standing as a leading renewable energy player,” said Terje Pilskog, CEO of Scatec in a statement.
“The Mogobe BESS project is a first of its kind and demonstrates our commitment to supporting the country's renewable energy growth.”
Northern Cape success
The project will be located near Kathu in the Northern Cape, close to key power demand centres, and is expected to replicate the success of Scatec’s hybrid solar and battery storage projects at Kenhardt.
Roar Haugland, Scatec’s EVP for Sub-Saharan Africa, said that the Mogobe project is critical to ensuring the sustainability of South Africa's energy system by unlocking more grid capacity.
"The Mogobe BESS facility represents a significant step forward in South Africa's energy transition, and we're proud to be a part of this groundbreaking project," explained Rentia van Tonder, head of power at Standard Bank.
