Scatec reaches final reparations for South African BESS

Scatec ASA, a leading renewable energy provider, has reached financial close for the Mogobe battery energy storage system (BESS) facility totalling 103 MW/412 MWh and is now making final preparations to start construction of the project. Mogobe BESS was awarded a 15 year power purchase agreement (PPA) under the first bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) in South Africa. As part of the agreement, Scatec will receive payments for making the storage capacity available for the National Transmission Company of South Africa (NTCSA) which will utilise the capacity to balance the grid. The estimated total CAPEX for the battery energy storage project is ZAR3.0 billion (US$170 million) of which Scatec’s EPC contracts account for approximately 83%. The project will be financed by ZAR2.7 billion (US$154 million) of non-recourse project debt, with the Standard Bank of South Africa as mandated lead arranger, and the remaining by equity from the owners. Scatec will own 51% of the equity in the project with Perpetua Mogobe (RF) (Pty) Ltd owning 46.5% and a holding company of the Mogobe Local Community Trust 2.5%. Scatec will be the engineering, procurement, and construction (EPC) provider and provide operations & maintenance...