Having been awarded preferred bidder status for the Haru battery energy storage system (BESS), Norwegian renewable-energy systems company Scatec has also been chosen as the preferred bidder for a total of 846 MW solar in the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Located at the Leander substation sites – one of five that were identified by State-owned power utility Eskom – the Haru BESS project totalled 123 MW/492 MWh in the third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP).

As Scatec will be making the storage capacity available for the National Transmission Company South Africa (NTCSA), which will use this capacity to balance the grid, the company will receive payments under a 15-year agreement.

The estimated total capital expenditure for the battery energy storage project is R2.2-billion of which Scatec’s engineering, procurement and construction (EPC) contracts account for about 80%.

Additionally, the project will be financed by 90% non-recourse project debt and the remaining 10% by owner equity.

Scatec CEO Terje Pilskog explained that the award reaffirmed the company’s standing as a “leading renewable-energy player in South Africa”.

“Battery energy storage will continue to play an important role in the energy transition, and we will continue to be at the forefront across our core markets,” stated Pilskog.

Building on the experience garnered from the hybrid solar and battery storage projects at Kenhardt and the ongoing construction of Mogobe BESS, Scatec will continue to actively support battery integration to stabilise South Africa’s national grid.

Scatec GM Alberto Gambacorta added that dispatchable energy and grid infrastructure are “now more important than ever in the pathway to unlock the sustainability of South Africa’s current and future energy system”.

Scatec will own 50.01% of the equity in the project with specialist investor manager Stanlib’s Greenstreet and Redstreet Funds owning 44.99% and a Community Trust holding the remaining 5%.

According to the Department of Electricity and Energy, commercial close is expected by the end of the first quarter of 2026.

Solar Reallocation

The award of preferred bidder status in the seventh round of the REIPPPP follows a re-allocation of megawatts under the seventh bid window from onshore wind to solar PV. Once operational, the projects will provide clean and reliable energy under 20-year power purchase agreements.

Located in the Free State, the Kroonstad PV cluster will comprise three solar power plants – Oslaagte Solar 2, Oslaagte Solar 3 and Leeuwspruit Solar.

The estimated total project cost for the solar cluster project is R13-billion. Moreover, the projects will be financed with up to 90% non-recourse debt and 10% owner equity.

“The Kroonstad PV cluster represents a significant addition to Scatec’s growing renewable-energy footprint in sub-Saharan Africa. Being selected once again under the REIPPPP reaffirms our role as a trusted partner and a leading developer in the region,” Pilskog explained.

Additionally, Scatec commended the government’s continued commitment to enabling clean, secure and affordable energy.

Gambacorta added that he was proud of Scatec’s largest megawatt award to date 6 in South Africa, which is a testament to the organisation’s strong track record, capabilities and competitive edge.

“South Africa is one of our core markets and we are dedicated to continuing to grow our renewables capacity in the country in alignment with the nation’s energy transition agenda,” he pointed out.

Moreover, he highlighted that Scatec is looking forward to reaching financial close and starting construction of the PV cluster in 2026.

Scatec will own 50.90% of the equity in the project with Stanlib’s infrastructure fund – though its renewable-energy platform, Greenstreet – along with Redstreet – owning 46.50% and a community trust holding the remaining 2.6%.

The company will provide EPC, operations, maintenance and asset management services to both projects.