South African Battery Storage Project Awarded to Scatec
In a significant development for the renewable energy sector in South Africa, Scatec ASA has been awarded preferred bidder status for the Haru BESS Battery Energy Storage Project. The project, located in the Free State Province, totals 123 MW/492 MWh and is part of the third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP).
Scatec will own a majority stake of 50.01% in the project, with Stanlib's Greenstreet and Redstreet Funds owning 44.99% and a Community Trust holding 5%. The Norwegian renewable energy company will provide engineering, procurement, and construction (EPC), operations & maintenance (O&M), and asset management (AM) services to the project, with EPC contracts accounting for approximately 80% of the project's cost.
The Department of Mineral Resources and Energy expects commercial close for the project to be concluded by the end of Q1 2026. The project will be financed by 90% non-recourse project debt and the remaining by equity from the owners. Scatec will receive payments under a 15-year agreement for making the storage capacity available for the National Transmission Company of South Africa (NTCSA).
The estimated total capex for the battery energy storage project is ZAR 2.2 billion (USD 120 million). This marks Scatec's continued commitment to battery integration to stabilise the national grid, building on their experience from hybrid solar and battery storage projects at Kenhardt.
Terje Pilskog, CEO of Scatec, stated that the award reaffirms their standing as a leading renewable energy player in South Africa. Alberto Gambacorta, GM and EVP Sub-Saharan Africa at Scatec, emphasizes the importance of dispatchable energy and grid infrastructure for South Africa's energy system.
Currently, Scatec is constructing the Mogobe BESS project and managing the Haru BESS project will further strengthen their presence in the region. The Haru BESS Battery Energy Storage Project belongs to the South African Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The project aligns with South Africa's efforts to increase its renewable energy capacity and reduce carbon emissions.
