Wedoany.com Report-Jun 4, Scatec, a renewable energy company, has been named the preferred bidder for the Haru battery energy storage system (BESS) project in South Africa’s Free State Province. The project, with a capacity of 123MW/492 megawatt-hours, falls under the third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme, managed by the Department of Mineral Resources and Energy.

Scatec will also provide EPC, O&M and AM services.

Under a 15-year agreement, Scatec will supply storage capacity to the National Transmission Company of South Africa (NTCSA) to support grid stability. The project’s estimated capital expenditure is approximately $120 million (R2.2 billion), with Scatec’s engineering, procurement, and construction (EPC) contracts covering about 80% of the costs. Scatec will also provide operations and maintenance (O&M) and asset management (AM) services.

Terje Pilskog, Scatec’s CEO, 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.”

The project’s financing structure includes 90% non-recourse project debt, with the remaining 10% funded by equity from stakeholders. Scatec will hold a 50.01% ownership stake, Stanlib’s Greenstreet and Redstreet Funds will own 44.99%, and a Community Trust will retain a 5% share. The Department of Mineral Resources and Energy expects the project to reach commercial close by the end of the first quarter of 2026.

Alberto Gambacorta, Scatec’s sub-Saharan Africa GM and EVP, 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 Haru BESS project underscores South Africa’s focus on expanding renewable energy infrastructure and enhancing grid reliability through advanced storage solutions, supporting the country’s sustainable energy goals.