Renewable energy company Scatec has been awarded preferred bidder status for the Haru battery energy storage system (BESS) project in South Africa.
The project, which totals 123MW/492 megawatt-hours (MWh), is part of the third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), led by the Department of Mineral Resources and Energy.
Under a 15-year agreement, Scatec will receive payments for making the storage capacity available to the National Transmission Company of South Africa (NTCSA), which will use it to balance the grid.
The estimated total capital expenditure for the project is approximately R2.2bn ($120m), with Scatec’s engineering, procurement and construction (EPC) contracts accounting for roughly 80% of the cost.
Scatec CEO Terje Pilskog said: “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.”
The project financing will consist of 90% non-recourse project debt, with the remainder covered by equity from the owners.
Scatec will own a 50.01% stake, Stanlib’s Greenstreet and Redstreet Funds will hold 44.99% and a Community Trust will maintain a 5% share.
Scatec will also provide engineering, procurement and construction (EPC), operations and maintenance (O&M) and asset management (AM) services.
Scatec sub-Saharan Africa GM and EVP Alberto Gambacorta said: “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.”
The Department of Mineral Resources and Energy anticipates commercial close by the end of the first quarter of 2026, with the project located in Free State Province.
