Scatec Secures 103 MW Battery Storage Project in South African Government Tender

Scatec Secures 103 MW Battery Storage Project in South African Government Tender

Scatec ASA, a prominent renewable energy player, has clinched the preferred bidder status for the Mogobe (Ferrum) battery energy storage project, a significant move in South Africa’s renewable energy landscape. This achievement comes under the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) of the Department of Mineral Resources and Energy.


The project, totaling 103 MW with a 412 MWh capacity, signifies Scatec’s pivotal role in the country’s transition towards renewable energy. Terje Pilskog, CEO of Scatec, expressed enthusiasm, highlighting this award as a testament to their standing in South Africa’s renewable energy domain.


Building upon their experience from hybrid solar and battery storage projects in Kenhardt, Scatec has emerged as a frontrunner in dispatchable renewable energy solutions in South Africa and the wider African continent.


Jan Fourie, EVP Sub-Saharan Africa at Scatec, emphasized the criticality of dispatchable energy and grid infrastructure for the sustainability of South Africa’s energy ecosystem.

The bidding process commenced on March 7, 2023, with submissions accepted until August 2, 2023. The overarching aim of the program is to procure 513 MW of battery storage across specific Eskom transmission substations in the Northern Cape province.

The estimated capital expenditure for the battery energy storage project stands at ZAR 3.1 billion (USD 163 million), with Scatec holding EPC contracts for about 83% of the total cost. Financing for the project will include ZAR 2.6 billion (USD 138 million) in non-recourse project debt, supplemented by equity from the owners.

Scatec will maintain 51% equity in the project, with Perpetua Holding at 46.5% and a Community Trust at 2.5%. They will spearhead the engineering, procurement, and construction (EPC) aspects, along with operations & maintenance (O&M) and asset management (AM) services.

The Department of Mineral Resources and Energy anticipates commercial close by June 2024, marking a significant milestone in advancing renewable energy initiatives in South Africa.