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Scatec making final preparations for construction of R3bn Northern Cape battery project

Scatec has already developed the hybrid Kenhardt project in the Northern Cape, comprising 540 MW of solar PV and a 225 MW/1 140 MWh BESS facility

Scatec has already developed the hybrid Kenhardt project in the Northern Cape, comprising 540 MW of solar PV and a 225 MW/1 140 MWh BESS facility

18th October 2024

By: Terence Creamer

Creamer Media Editor

     

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Renewable-energy group Scatec says it is making final preparations to start construction of the R3-billion Mogobe battery energy storage system (BESS) project, which reached financial close on October 16.

The 103 MW/412 MWh project is located near Kathu, in the Northern Cape, and has been awarded a 15-year power purchase agreement under South Africa’s inaugural Battery Energy Storage Independent Power Producer Procurement Programme bid window.

The Mogobe BESS project and the 77 MW/308 MWh Oasis Mookodi project, being developed by an EDF-led consortium, were the first two of five stand-alone battery storage projects named as preferred bidders under the bidding round to advance to financial close.

Government has indicated that two more projects should achieve the milestone by year-end, while the last is expected to do so in early 2025.

A total of R2.7-billion of non-recourse project debt has been secured for the Mogobe BESS project, with Standard Bank of South Africa as mandated lead arranger.

The remaining funding will be raised by Scatec (51%) and Perpetua Mogobe (46.5%), with the Mogobe Local Community Trust owing the 2.5% balance.

Scatec will be the engineering, procurement, and construction contractor and provide operations and maintenance, as well as asset management services to the project, which will help unlock more grid capacity in a region where there is strong demand to connect more renewables.

The Norwegian independent power producer has already developed the  hybrid Kenhardt project in the province, where 540 MW of solar PV capacity has been combined with 225 MW/1 140 MWh of battery energy storage, to produce 150 MW of dispatchable electricity daily from 5:00 until 21:30.

Edited by Creamer Media Reporter

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