By: Power line

Scatec ASA has secured preferred bidder status for the Haru battery energy storage project (BESS). The project has a capacity of 123 MW/492 MWh and is situated in South Africa. 

The preferred bidder status has been secured in the third bid window of the battery energy storage independent power producer procurement programme by South Africa’s Department of Mineral Resources and Energy.

The company will receive payments under a 15-year agreement for making the storage capacity available for the National Transmission Company of South Africa, which will utilise the capacity to balance the grid. 

Furthermore, Scatec will own 50.01 per cent of the equity in the project. Stanlib’s Greenstreet and Redstreet Funds will own 44.99 per cent equity in the project, and a Community Trust will own the remaining 5 per cent. 

The estimated total capex for the project is $120 million, of which Scatec’s EPC contracts account for approximately 80 per cent of the total amount. Additionally, the project will be financed by 90 per cent non-recourse project debt and the remaining by equity from the owners. The project is expected to conclude the commercial close by the end of first quarter of 2026.