Scatec Strengthens Renewable Energy Portfolio
Scatec ASA has recently achieved preferred bidder status for the Haru BESS Battery Energy Storage Project, a massive initiative with a total capacity of 123 MW/492 MWh. This project has been awarded as part of South Africa's Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), facilitated by the Department of Mineral Resources and Energy.
Under a commitment spanning 15 years, Scatec will provide storage capacity to the National Transmission Company of South Africa (NTCSA). This partnership will enable the NTCSA to optimize grid performance, ensuring a balanced and sustainable energy supply.
Financial Overview of the Project
The financial aspects of the battery energy storage project are noteworthy. The estimated total expenditure is approximately ZAR 2.2 billion (around USD 120 million), with Scatec's engineering, procurement, and construction (EPC) contracts accounting for about 80% of this investment. Notably, 90% of the project will be funded through non-recourse project debt, further indicating Scatec's strategic financial planning.
Commitment to Renewable Energy
Scatec’s CEO, Terje Pilskog, emphasized the significance of this project during the announcement, stating, "Today’s award reaffirms our standing as a leading renewable energy player in South Africa." His remarks highlighted the critical role battery storage technologies will play in the ongoing energy transition, aligning with Scatec’s mission to support sustainable energy solutions across various markets.
Building on Previous Experience
The Haru BESS project is a natural progression for Scatec, incorporating lessons learned from their previous initiatives, including the innovative hybrid solar and battery projects at Kenhardt. Additionally, the construction of the ongoing Mogobe BESS further enhances Scatec's expertise in battery integration, crucial for national grid stabilization.
Future Prospects of the Project
Alberto Gambacorta, GM and EVP for Sub-Saharan Africa at Scatec, underlined the growing importance of dispatchable energy and robust grid infrastructure. He stated, "These elements are essential in the path towards achieving sustainability within South Africa's current and future energy system." Scatec’s commitment to owning 50.01% of the equity stake in the project, with additional investors including Stanlib’s Greenstreet and Redstreet Funds, showcases a collaborative approach to energy modernization.
Timelines and Community Involvement
According to industry insights, commercial closure for this transformative project is anticipated by the end of a specific timeline, promising exciting developments for the Free State Province. Additionally, Scatec's collaboration with community trusts signals a commitment to local empowerment and socio-economic development.
Contact Information for Investors and Media
For analysts and investors seeking further information, they can reach out to Andreas Austrell, VP of IR, via andreas.austrell@scatec.com or call +47 974 38 686. Media inquiries can be directed to Meera Bhatia, SVP of External Affairs, at meera.bhatia@scatec.com or +47 468 44 959.
Frequently Asked Questions
What is the Haru BESS Battery Energy Storage Project?
The Haru BESS project is Scatec ASA's newly awarded initiative in South Africa with a capacity of 123 MW/492 MWh under a long-term agreement for energy storage.
What role does Scatec play in this project?
Scatec will act as the primary contractor, providing essential engineering, procurement, construction, and operational services for the battery storage facility.
How will the project impact South Africa's energy landscape?
The project aims to enhance grid stability and support renewable energy efforts in South Africa, promoting a sustainable energy transition.
What is the expected financial investment for the project?
The total expected investment is around ZAR 2.2 billion (USD 120 million), with a significant portion funded through non-recourse debt.
When is the project expected to reach commercial closure?
Commercial closure for the Haru BESS project is projected to be completed by the end of Q1 2026.
