
Scatec has been named preferred bidder for a 123 MW/492 MWh battery energy storage project in South Africa’s Free State Province. (Image source: Scatec)
Scatec ASA has secured preferred bidder status for the Haru Battery Energy Storage System (BESS) project under South Africa’s third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP)
The project, with a total capacity of 123 MW/492 MWh, has been awarded by the Department of Mineral Resources and Energy (DMRE).
Under a 15-year agreement, Scatec will be compensated for providing storage capacity to the National Transmission Company of South Africa (NTCSA), which will deploy the energy storage to help stabilise the national electricity grid.
Grid stability boost
The total capital expenditure for the project is estimated at ZAR 2.2 billion (approximately US$120mn), with about 80% of this allocated to engineering, procurement, and construction (EPC) contracts managed by Scatec. Financing will be structured with 90% non-recourse project debt and 10% equity from project owners.
“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,” stated Terje Pilskog, CEO of Scatec.
The Haru project builds upon Scatec’s experience with hybrid solar and storage solutions, such as the Kenhardt project and the ongoing Mogobe BESS development, reinforcing the company’s role in enhancing grid reliability through integrated battery storage.
“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,” said Alberto Gambacorta, general manager and executive vice-president, sub-Saharan Africa, Scatec.
Equity in the project will be shared among Scatec (50.01%), Stanlib’s Greenstreet and Redstreet Funds (44.99%), and a Community Trust (5%). Scatec will also be responsible for EPC, operations and maintenance (O&M), and asset management (AM) services.
According to the DMRE, commercial close is expected by the end of Q1 2026. The Haru BESS project will be located in South Africa’s Free State Province.