Scatec achieves financial close for South Africa’s 103 MW Mogobe BESS

Scatec has reached financial close for its 103 MW/412 MWh Mogobe battery energy storage system (BESS) in South Africa.

The project, Africa’s first and largest standalone dispatchable BESS, is set to begin construction near Kathu in the Northern Cape. Scatec holds a 51% equity share, with Perpetua Mogobe (RF) owning 46.5%, and the Mogobe Local Community Trust holding 2.5%.

The Mogobe BESS was awarded a 15-year power purchase agreement (PPA) under South Africa’s battery energy storage independent power producer procurement programme (BESIPPPP). The National Transmission Company of South Africa will use the storage capacity to stabilize the grid. The project’s total capital expenditure is estimated at R3 billion (USD 170 million), with 83% of this investment allocated to Scatec’s engineering, procurement, and construction (EPC) services. The financing includes R2.7 billion (USD 154 million) in non-recourse project debt arranged by the Standard Bank of South Africa, complemented by equity contributions from the project’s owners.

Scatec will provide EPC, operations and maintenance, and asset management services for the project. CEO Terje Pilskog highlighted that the Mogobe BESS project marks a significant milestone for Scatec and the renewable energy transition in South Africa. He also noted the company’s strong position and local expertise, which presents attractive growth opportunities in the region.

Earlier, in September 2024, Scatec signed a PPA with the Egyptian Electricity Transmission Company for a 1 GW solar project and a 100 MW/200 MWh battery storage system in Egypt.