Scatec Secures Major Battery Storage Project in South Africa

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South Africa’s energy sector continues its transformation with the awarding of the Mogobe Battery Energy Storage System project to Norwegian renewable energy provider Scatec. Located in the Northern Cape province near Kathu, this 103 MW/412 MWh project is part of the country’s first Battery Energy Storage Independent Power Producer Procurement Programme. Backed by a 15-year power purchase agreement with the National Transmission Company of South Africa, the project is designed to support grid reliability and integrate renewable energy more effectively into the national supply mix.

Project details

The Mogobe BESS project is expected to cost ZAR 3.0 billion, or about US$170 million, with ZAR 2.7 billion secured through non-recourse debt financing led by Standard Bank of South Africa. The remaining capital will come from equity contributions by the project owners.

With a storage capacity of 103 MW and 412 MWh, the system is designed to deliver high-performance energy storage services. It will provide dispatchable power during peak periods and enhance overall grid flexibility. This makes it one of the most significant standalone battery storage investments currently underway in the region.

The project aligns with South Africa’s Integrated Resource Plan and supports the Department of Mineral Resources and Energy’s goal to expand renewable energy and reduce the grid instability issues that have plagued the country’s power infrastructure.

Strategic partnerships

Scatec owns 51 percent of the project, joined by Perpetua Mogobe Ltd with 46.5 percent and the Mogobe Local Community Trust with 2.5 percent. The ownership structure reflects a focus on inclusive economic participation, ensuring that local stakeholders benefit from the project’s long-term success.

Perpetua Mogobe brings local expertise and a commitment to community-driven investment, while the Local Community Trust’s stake ensures direct benefits flow to nearby residents. This structure is consistent with South Africa’s energy procurement policy, which emphasizes socio-economic development alongside infrastructure expansion.

Contractual framework and policy alignment

The project was awarded through BESIPPPP, a national program developed to increase battery storage deployment and facilitate renewable integration. The 15-year PPA signed with the NTCSA guarantees energy off-take and long-term project stability, aligning incentives for both government and private sector actors.

The BESIPPPP is an important tool in transitioning South Africa’s energy system toward a more decentralized and technologically advanced model. Projects such as Mogobe are expected to help reduce load-shedding and improve energy availability for both industrial and residential users.

Scatec’s technical leadership and project experience

As the Engineering, Procurement, and Construction (EPC) provider, Scatec is responsible for delivering the Mogobe BESS system on time and within budget. The company will also manage Operations and Maintenance (O&M) and Asset Management (AM) for the facility, applying its experience from previous projects, including the Kenhardt hybrid solar and battery installation.

Scatec’s involvement shows the importance of integrated service models in large-scale energy storage deployments. By overseeing the full lifecycle from construction to operations, the company provides technical assurance and project continuity. This approach is critical for infrastructure projects in emerging markets.

The strategic location of the Mogobe BESS near Kathu allows it to support the local grid while enabling broader regional energy resilience. As South Africa expands its renewable capacity, the need for storage solutions that can balance intermittent supply is becoming more urgent. The project also creates opportunities for additional renewable installations to come online without risking system reliability.

Sources:

• Scatec