Scatec is a renewable energy company that specializes in the development, construction and operations of hydro, solar and wind power plants while focusing on the storage solutions for renewable energy. This company has recently left a mark in South Africa after being involved with the Mogobe BESS Construction in the country.
Their main aim is to contribute to the global transition to renewable energy by providing sustainable and affordable energy solutions. For this reason, they are the primary contractor for 103MW BESS project in South Africa.
Project Factsheet
Name: Mogobe Battery Energy Storage System (BESS) project
Capacity: 103MW
Developer: Scatec
Location: Near Kathu, Northern Cape
Cost: $170 million
Significance: Job creation and contribute to South Africa’s renewable energy goals by reducing reliance on fossil fuels.
The 15-year Power Purchase Agreement (PPA) was awarded to Mogobe BESS as it was selected under the first phase of energy storage deployment. By securing this contract, Mogobe BESS assists NTCSA(National Transmission Company of South Africa) address the issues of grid instability. This ensures stable and reliable supply for energy in South Africa.
Also read: 53 Gigawatts of Wind Energy Projects in South Africa’s Development Pipeline
Spearheading a Sustainable and Renewable Energy System
“Energy that can be produced on demand whenever it’s needed and a strong grid are the foundations of a sustainable and renewable energy system.” Said Roar Haugland, EVP Sub-Saharan Africa, Scatec. “By improving the grid, we are enabling further electricity access as well as enabling more renewable energy grid connections in the future.”
Capital expenditure for this project is US$170 Million. The 103MW energy capacity will be able to store 412 MWh of energy while Scatec’s EPC contract accounts for 83%. NTCSA will use BESS to balance the grid. The system will store extra energy when there is excess electricity and release it when there is less electricity to keep the grid stable.
Mogobe BESS Construction Project Funding
Standard Bank of South Africa is leading in the financing of this project with US$154 million non-resource project debt. The remaining cost of about US$16 Million coming from equity from the project owners’ direct investments.
“This is a big achievement for Scatec in South Africa and also for the country by using renewable energy. The Mogobe BESS project is the first in a line of many projects to come of this kind in the country. It validates Scatec as a major key player in the role it plays as the leading renewable energy company in the country. We see economic potential in the country based on the fact that there is and will always be high demand for electricity and Scatec has a local and competent team thus there are high chances of expanding the team and building more projects like this one.” Said Scatec CEO Terje Pilskog.
“Standard Bank is happy to continue our long-term partnership with Scatec as the lead arranger for this project. This project is the beginning of the transitioning of the country’s energy source and for this reason, we are focused in providing financial support for projects that are to help develop sustainable energy solutions. Renewable energy is innovative and beneficial to the country’s economy and also its environment.” Said Rentia Van Tondler, head: power-corporate and investment banking, Standard Bank of South Africa.
This achievement for a sustainable future comes at a crucial moment given IRENA’S recent warning that the world is set to miss a key climate target without immediate change.
Also read: South Africa’s Largest Renewable Hybrid Energy Facility
