The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Scatec begins construction on 1.1GW co-located energy storage projects in South Africa


Renewable energy power producer Scatec has started building three co-located solar projects with 1.1GWh of energy storage in South Africa, after achieving financial close.

Once operational the projects will have a total solar PV power of 540MW and battery storage capacity of 225MW/1,140MWh. The project has been designed to reduce the size of the grid connecion required, with only 150MW of dispatchable power to be provided under a 20-year power purchase agreement (PPA) with the local Kenhardt region.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The launch of construction comes six weeks after the Norway-based company secured PPAs for the three projects in Northern Cape, as reported by And it comes a year after the company won the tender to deliver them under South Africa’s Risk Mitigation Power Procurement Programme (RMIPPP) programme which is seeking to reduce capacity shortfalls on the grid.

“This project is a first of its kind and will be one of the world’s largest solar and battery facilities. We are now looking forward to starting construction of this unique and exciting project, which will be a major contribution to South Africa’s economy and green energy sector,” said Scatec CEO Terje Pilskog.

Scatec said the project will be the largest investment in its history with a total capital expenditure of ZAR16.4 billion (US$962 million) financed by equity from the owners of the project, which are Scatec with 51% and H1 Holdings with 49%. H1 is the project’s local Black Economic Empowerment partner, as one of the requisite conditions for taking part in the tender was local, black-owned business involvement.

Another ZAR12.4 billion in non-recourse project debt will go towards the project, meaning a total of US$1.6 billion in equity and debt. Lenders included Standard Bank Group and British International Investments.

Scatec is providing engineering, procurement and construction (EPC), long-term operations and maintenance (O&M) and asset management services. The development and EPC contract will generate US$800 million in revenue for the company, Scatec said.

The RMIPPP tender by grid operator ESKOM is one of three programmes which alone will see around 1GW of energy storage power, and several GWh of capacity, come onto the South African grid in the next few years.

There are two others for standalone projects which reported on recently. One is a procurement which will see 199MW/832MWh of standalone energy storage developed at eight sites to provide national peak shaving and ancillary services. The other, which is expected to come later this year, will see over 500MW of storage tendered although details that have not yet been released.

Read Next

July 5, 2024
The consultation in New South Wales, Australia, on reducing the definition of LDES to 4-hours sparked mixed reactions in the energy sector.
July 4, 2024
The European Bank for Reconstruction and Development (EBRD) will provide up to US$229.4 million to ACWA Power to develop a 200MW/500MWh solar-plus-storage project in Uzbekistan.
July 3, 2024
The Provincial Electricity Authority (PEA) of Thailand will assess the feasibility of energy storage business models in partnership with a subsidiary of state-owned oil & gas company PTT Group.  
July 2, 2024
Over the past few days, non-lithium long-duration energy storage (LDES) technology providers have made a plethora of announcements.
June 27, 2024
The first community battery energy storage system (BESS) has been switched on as part of the ‘Power Melbourne’ initiative in Australia.

Most Popular

Email Newsletter