Norwegian renewable power producer Scatec ASA (OSE:SCATC) has been awarded preferred bidder status for the 103-MW/412-MWh Mogobe/Ferrum battery energy storage project under the South African battery storage procurement programme, the company announced on Thursday.
The award will enable Scatec to connect the battery to the Ferrum substation in Northern Cape and dispatch power under a 15-year power purchase agreement (PPA).
The company will own a 51% stake in the Mogobe project. Its partners, Perpetua Holding and Community Trust, will own 46.5% and 2.5%, respectively.
Scatec said that it will also serve as the engineering, procurement, and construction (EPC) services provider to the project, and take charge of operations and maintenance (O&M) and asset management services once the battery is up and running.
The Mogobe battery project is expected to cost ZAR 3.1 billion (USD 165.4m/EUR 151.7m), with Scatec’s EPC contracts making up around 83% of that total. The project will be funded with ZAR 2.6 billion in non-recourse project debt. The project’s owners will provide equity to cover the remaining amount.
Scatec secured its preferred bidder status with Mogobe under the first bid window of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). The Department of Mineral Resource and Energy (DMRE) launched the request for proposals in March 2023, aiming to procure 513 MW of battery storage spread between five specific substations in the Northern Cape province.
DMRE is expected to conclude commercial close by June 2024, Scatec added.
(ZAR 10 = USD 0.534/EUR 0.489)
Source: renewablesnow
