Scatec, a renewable energy solutions provider, announced financial closure for the 103 MW/ 412 MWh Mogobe battery energy storage system (BESS) in South Africa.
The estimated total capex for the energy storage project is ZAR 3 billion (~$170 million), of which Scatec’s EPC contracts account for nearly 83%. The project will be financed by ZAR 2.7 billion (~$154 million) non-recourse project debt. The Standard Bank of South Africa is the mandated lead arranger, while the remaining funding will be provided by equity from the owners.
The project, located near Kathu, Northern Cape, has a 15-year power purchase agreement (PPA) awarded under the Battery Energy Storage Independent Power Producer Procurement Program (BESIPPPP). As per the PPA, Scatec will receive payments to make the storage capacity available for the National Transmission Company of South Africa (NTCSA), which will utilize the capacity to balance the grid.
“Standard Bank is proud to continue our long-standing partnership with Scatec as the lead arranger for the groundbreaking Mogobe BESS project. This facility represents a significant step forward in South Africa’s energy transition, building on our successful collaboration on projects like Kenhardt. We’re committed to financing innovative energy solutions that drive sustainable development and economic growth in South Africa and across the continent,” says Rentia van Tonder, Head of Power – Corporate and Investment Banking, Standard Bank of South Africa.
According to Mercom’s recently released 9M and Q3 2024 Funding and M&A report for Energy Storage and Smart Grid, energy storage project funding in 9M 2024 saw a record $10.1 billion raised in 35 deals compared to $6.8 billion in 26 deals in 9M 2023.
Earlier this year, Scatec announced financial closure for the Sidi Bouzid and Tozeur solar projects, which have a total capacity of 120 MW in Tunisia (each 60 MW).
