Scatec Awarded Battery Energy Storage Project in South Africa

Scatec wins a major energy storage project in South Africa, marking a significant step forward in the country's energy transition.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Scatec ASA, a Norwegian company specializing in renewable energy, has been named preferred bidder for the Mogobe (Ferrum) battery energy storage project in South Africa. This project, with a capacity of 103MW/412MWh, is part of the first call for tenders of the Procurement of Independent Battery Power Producers Program (BESIPPPP) initiated by the Department of Mineral Resources and Energy. This success confirms Scatec’s position as a key player in the renewable energy landscape in South Africa and on the African continent.

The project in detail

The Mogobe project, with an estimated total cost of ZAR 3.1 billion (around USD 163 million), will be financed mainly by ZAR 2.6 billion (USD 138 million) in non-recourse project debt, with the remainder covered by the owners’ equity. Scatec will hold 51% of the project’s equity, Perpetua Holding 46.5% and a community trust the remaining 2.5%. Scatec will also provide engineering, procurement and construction (EPC) services, as well as maintenance and asset management for the project.

Implications for South Africa

The award of this project to Scatec underlines the South African government’s commitment to battery-based energy storage programs, which are seen as essential to the sustainability of the country’s current and future energy system. In addition, this project will make a significant contribution to South Africa’s energy transition, providing a reliable and manageable source of renewable energy. This is an important step towards achieving sustainable development goals and combating climate change.

Regional outlook

The Mogobe project, with a planned commercial closing date of June 2024, not only reinforces South Africa’s position as a leader in energy transition, but also paves the way for other similar initiatives across the African continent. However, this initiative could serve as a model for other African countries seeking to diversify their energy sources and adopt sustainable energy solutions.

Scatec’s battery-powered energy storage project in South Africa is a major milestone in the continent’s energy transition. Indeed, it represents a successful combination of innovation, collaboration and commitment to a sustainable energy future.

Ameresco has completed a 50 MW battery storage system to support Nucor’s expansion in Arizona, marking one of the largest behind-the-meter industrial projects in the United States.
Rondo Energy has launched commercial operations of the world’s largest industrial heat battery, delivering 24-hour steam from off-grid solar power.
SUNOTEC expands in the Bulgarian market with seven projects combining battery and solar, totalling 763 MWh of storage and 115 MWp of photovoltaic capacity.
Danish fund Copenhagen Infrastructure IV transfers half of its stake in the UK-based Coalburn 2 project to AIP Management, strengthening AIP's energy storage portfolio in the United Kingdom.
Lyten has completed the acquisition of the Northvolt Dwa site in Poland, Europe’s largest energy storage system factory, and plans to deliver its first commercial units before the end of 2025.
SNG Holdings launched trial operations of a 2MW/6MWh energy storage facility in Gotemba, backed by Digital Grid and PHOTON, ahead of commercial commissioning scheduled for November.
The Winchester project will combine 160 MW of storage with two 80 MW solar plants in Cochise County, with delivery expected in early 2027.
Greenflash Infrastructure has acquired a 200 MW standalone storage project in Texas, marking a strategic asset transfer aimed at reinforcing local grid reliability.
Gotion High-Tech presented in Saudi Arabia a modular 20 MWh storage solution aimed at strengthening the country's energy capacity under its Vision 2030 strategy.
The Japanese developer has commissioned a storage unit in Karatsu and plans to deploy 80 facilities by the end of 2026, relying on agreements with local governments and industrial partners.
Energy Plug, Malahat Battery Technology and Quantum eMotion sign strategic agreement to develop quantum-secured energy storage systems, including a NATO-aligned defence initiative.
Greenflash Infrastructure has finalised the acquisition of Rock Rose, a 200 MW energy storage project located in Fort Bend County, to strengthen its ERCOT market portfolio.
SALA Energy commissions its first grid-scale battery storage facility using sodium-sulfur batteries, supported by both public and private financing.
Utility-scale battery storage system costs continue to fall across Asia-Pacific, but the pace of reductions is expected to slow significantly by 2029, according to Wood Mackenzie projections.
StarCharge has secured a 500MWh energy storage order through a strategic agreement with ENERGY INVESTMENT LLC, strengthening its position in rapidly evolving Eastern European markets.
The Vilvoorde site in Belgium now hosts 400 MWh of operational capacity on a total 800 MWh project, marking a key milestone for electricity storage on the continent.
Idemitsu Kosan has commissioned a 15MW/48MWh energy storage facility in Himeji, marking the start of its deployment in grid-scale storage with Japanese public funding.
The Australian government awarded contracts to 20 renewable and storage projects, surpassing the initial 6GW goal under the fourth round of the Capacity Investment Scheme.
The Padua Complex will deliver 400 MW/1.8 GWh capacity with Tesla's support, at a strategic node of the Texas grid, following legislative action to strengthen energy reliability.
Salt River Project will partner with ESS to install a 50 MWh long-duration energy storage system in Pinal County as part of its capacity expansion plan to meet rising demand.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.