Scatec Achieves Financial Closure for Battery Storage Initiative
Scatec ASA, a prominent player in the renewable energy sector, has recently announced that it has successfully reached financial closure for the Mogobe battery energy storage project. With a capacity of 103 MW and 412 MWh, this facility is poised to become a significant contributor to sustainable energy in the region.
Details of the Mogobe Battery Energy Storage System
The Mogobe battery energy storage system (BESS) has secured a 15-year power purchase agreement (PPA) as part of the Battery Energy Storage Independent Power Producer Procurement Programme in South Africa. Under this agreement, Scatec will receive regular payments for maintaining the storage capacity available to the National Transmission Company of South Africa (NTCSA), which will use the energy to stabilize the electrical grid.
Financial Overview of the Project
With an estimated total capital expenditure of ZAR 3.0 billion, approximately USD 170 million, the Mogobe project signifies a substantial investment in renewable energy infrastructure. Scatec is set to handle around 83% of this expenditure through its engineering, procurement, and construction (EPC) contracts. The project will be financed through ZAR 2.7 billion of non-recourse project debt, led by Standard Bank of South Africa as the mandated lead arranger, while the rest will be provided through equity investments.
Equity Ownership and Community Involvement
In terms of equity distribution, Scatec will possess 51% ownership of the project, while Perpetua Mogobe (RF) (Pty) Ltd holds 46.5%, and the Mogobe Local Community Trust holds the remaining 2.5%. Scatec will not only act as the EPC provider but will also offer operations and maintenance (O&M) as well as asset management (AM) services for the duration of the project.
Leadership Insights on the Project's Importance
According to Scatec CEO Terje Pilskog, reaching this new milestone underscores the company's role in advancing renewable energy in South Africa. He asserts that the Mogobe BESS project is groundbreaking and aligns with Scatec's focus on meeting the growing demand for power generation while leveraging their strong local presence and expertise.
Future Prospects for Renewable Energy in South Africa
The Mogobe project aims to replicate successes from previously established hybrid solar and battery storage projects in the region, establishing it as one of Africa’s notable standalone dispatchable battery energy storage systems. Located near Kathu, Northern Cape, it is strategically positioned to serve high power demand areas, contributing to the overall energy needs of the country.
Commitment to Sustainable Energy Solutions
Roar Haugland, Executive Vice President for Sub-Saharan Africa at Scatec, emphasized the critical role that dispatchable energy and robust grid infrastructure play in ensuring a sustainable energy future for South Africa. By enhancing grid capacity, the project will facilitate broader electricity access and accommodate more renewable energy sources in the coming years.
Partnerships and Collaborative Efforts
Standard Bank articulates its ongoing dedication to supporting Scatec as the lead arranger for this innovative project. According to Rentia van Tonder, head of Power - Corporate and Investment Banking at Standard Bank, the Mogobe BESS project marks a significant advancement in South Africa's transition to renewable energy. Their long-standing collaboration on projects like Kenhardt has been foundational in driving sustainable development across the continent.
Contact Information for More Queries
For further inquiries regarding the project, interested parties can contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, email: andreas.austrell@scatec.com
For media inquiries: Meera Bhatia, SVP Communications & Government Affairs, phone: +47 468 44 959, email: meera.bhatia@scatec.com
About Scatec
Scatec is a leading provider of renewable energy solutions committed to accelerating access to reliable and affordable clean energy in emerging markets. With 4.7 GW of projects either operational or under construction across four continents, Scatec continues to expand its renewable energy footprint. The company is based in Oslo, Norway, and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’.
Frequently Asked Questions
What is the capacity of the Mogobe battery energy storage system?
The Mogobe battery energy storage system has a capacity of 103 MW and can store 412 MWh of energy.
Who are the equity holders in the Mogobe project?
Scatec holds 51% equity, Perpetua Mogobe (RF) (Pty) Ltd holds 46.5%, and a trust representing the Mogobe Community holds 2.5%.
What is the duration of the power purchase agreement?
The power purchase agreement for the Mogobe project is for a period of 15 years.
How much total investment is being made in the Mogobe project?
The total estimated capex for the Mogobe battery energy storage project is ZAR 3.0 billion, approximately USD 170 million.
Which bank is involved in financing the project?
Standard Bank of South Africa is acting as the mandated lead arranger for the financing of the Mogobe project.
