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Scatec ASA has been named the preferred bidder for the Haru Battery Energy Storage System (BESS) Project in South Africa, with a capacity of 123 MW/492 MWh. This selection was made through the third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), managed by South Africa’s Department of Mineral Resources and Energy. Under a 15-year agreement, Scatec will receive payments for providing this storage capacity to the National Transmission Company of South Africa (NTCSA), which will use it to help balance the country’s power grid. The total estimated capital expenditure for the project is about ZAR 2.2 billion (approximately USD 120 million), with around 80% of the costs covered by Scatec’s engineering, procurement, and construction (EPC) contracts. Financing for the project will be made up of 90% non-recourse project debt, with the remaining 10% coming from equity contributed by the project owners. Drawing on its experience from previous hybrid solar and battery projects at Kenhardt and the ongoing Mogobe BESS construction, Scatec is committed to advancing battery storage solutions to improve grid stability in South Africa. Terje Pilskog, CEO of Scatec, stated, “Today’s award reaffirms our standing as a leading renewable energy player in South Africa. 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. Alberto Gambacorta, GM and EVP Sub-Saharan Africa, Scatec, mentioned, “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.” Scatec will hold a 50.01% ownership stake in the project. The remaining equity will be owned by Stanlib’s Greenstreet and Redstreet Funds, which together hold 44.99%, and a Community Trust that owns 5%. Scatec will also be responsible for providing EPC, operations and maintenance (O&M), and asset management (AM) services throughout the project’s lifecycle. The Department of Mineral Resources and Energy expects commercial close to be finalized by the end of the first quarter of 2026. The project will be located in South Africa’s Free State Province. |
