Norwegian renewable energy solutions provider, Scatec ASA, has secured the preferred bidder status for the Mogobe (Ferrum) battery energy storage system (BESS) project totalling 103 MW/412 MWh, under the first bid window of the Battery Energy Storage Independent Power Producer Procurement Programme in South Africa organised by the Department of Mineral Resources and Energy (DMRE).
Scatec will dispatch power under a 15 year power purchase agreement. The bidding process, initiated on March 7, 2023, with submissions made on August 2, 2023, aimed to procure 513 MW of battery storage across specific Eskom transmission substations in South Africa’s Northern Cape province. The estimated total capex for the BESS project is ZAR3.1 billion, with Scatec’s engineering, procurement and construction (EPC) contracts accounting for about 83 per cent. Funding will be sourced from ZAR2.6 billion of non-recourse project debt and the remaining from equity contributions by the owners. Scatec will hold 51 per cent equity in the project, with Perpetua Holding and Community Trust owning 46.5 per cent and 2.5 per cent, respectively. Additionally, Scatec will provide EPC, operations and maintenance, and asset management services for the project. DMRE anticipates concluding commercial negotiations by June 2024. This development signifies a significant stride towards enhancing South Africa’s energy storage capacity and fostering sustainable energy practices.