Renewable energy provider Scatec has reached financial close for the103MW/412 megawatt hours (MWh) Mogobe battery energy storage system (BESS) facility in South Africa.

The company is preparing to begin the construction of the project, Africa’s first and largest standalone dispatchable BESS system, near Kathu in the Northern Cape.

Scatec will hold a 51% equity share in the project, with Perpetua Mogobe (RF) owning 46.5%, and a holding company of the Mogobe Local Community Trust having the remaining 2.5%.

Mogobe BESS received a 15-year power purchase agreement (PPA) through the first bid window of South Africa’s battery energy storage independent power producer procurement programme (BESIPPPP).

The National Transmission Company of South Africa will utilise the storage capacity provided by Scatec to maintain grid stability.

The project’s total capital expenditure is estimated at R3bn ($170m), with Scatec’s engineering, procurement and construction (EPC) contracts comprising 83% of this investment.

The financing structure includes R2.7bn ($154m) in non-recourse project debt, arranged by the Standard Bank of South Africa, and equity contributions from the project’s owners.

Scatec will provide EPC services, operations and maintenance, and asset management services to the project.

Scatec CEO Terje Pilskog stated: “This marks a new milestone for Scatec in South Africa and for the renewable energy transition in the country. The Mogobe BESS project is a first of a kind and reaffirms our standing as a leading renewable energy player in South Africa.

“We continue to see attractive growth opportunities in the market based on the need for growth in power generation, our strong position in the country and our strong and competent local team.”

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