The third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) is for a total of 123 MW/492 MWh. Scatec will receive payments under a 15-year agreement for making the storage capacity available for the National Transmission Company of South Africa (NTCSA) which will utilise the capacity to balance the grid.
The estimated total capex for the battery energy storage project is ZAR 2.2 billion ($120 million) of which Scatec’s EPC contracts account for approximately 80 percent. The project will be financed by 90 percent non-recourse project debt and the remaining by equity from the owners.
“Today’s award reaffirms our standing as a leading renewable energy player in South Africa” said Scatec CEO Terje Pilskog. “We applaud the South African government’s commitment and dedication to the renewable energy procurement programmes. Battery energy storage will continue to play an important role in the energy transition, and we will continue to be at the forefront across our core markets.”
Building on the experience garnered from the hybrid solar and battery storage projects at Kenhardt, and the ongoing construction of Mogobe BESS, Scatec continues to actively support battery integration to stabilise the national grid.
“Dispatchable energy and grid infrastructure are now more important than ever, in the pathway to unlock the sustainability of South Africa’s current and future energy system” added Alberto Gambacorta, GM and EVP Sub-Saharan Africa, Scatec.
Scatec will own 50.01 percent of the equity in the project with Stanlib’s Greenstreet and Redstreet Funds owning 44.99 percent and a Community Trust holding 5 percent. Scatec will provide engineering, procurement, and construction (EPC), operations & maintenance (O&M), and asset management (AM) services to the project.
According to the Department of Mineral Resources and Energy, commercial close is expected to be concluded by the end of Q1 2026. The project will be located in the Free State Province.
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