Scatec reaches financial close and prepares for construction start for battery energy storage project in South Africa

18 Oct 2024 14:45 CEST

Oslo, 18 October 2024: Scatec ASA, a leading renewable energy provider, has
reached financial close for the Mogobe battery energy storage system ("BESS")
facility totaling 103 MW / 412 MWh and is now making final preparations to start
construction of the project.

Mogobe BESS was awarded a 15-year power purchase agreement (PPA) under the first
bid window of the Battery Energy Storage Independent Power Producer Procurement
Programme (BESIPPPP) in South Africa. As part of the PPA, Scatec will receive
payments for making the storage capacity available for the National Transmission
Company of South Africa (NTCSA) which will utilise the capacity to balance the
grid.

The estimated total capex for the battery energy storage project is ZAR 3.0
billion (USD 170 million) of which Scatec's EPC contracts account for
approximately 83%. The project will be financed by ZAR 2.7 billion (USD 154
million) of non-recourse project debt, with the Standard Bank of South Africa as
mandated lead arranger, and the remaining by equity from the owners.

Scatec will own 51% of the equity in the project with Perpetua Mogobe (RF) (Pty)
Ltd owning 46.5% and a holding company of the Mogobe Local Community Trust
2.5%. Scatec will be the engineering, procurement, and construction (EPC)
provider and provide operations & maintenance (O&M), as well as asset management
(AM) services to the project.

"This marks a new milestone for Scatec in South Africa and for the renewable
energy transition in the country. The Mogobe BESS project is a first of a kind
and reaffirms our standing as a leading renewable energy player in South Africa.
We continue to see attractive growth opportunities in the market based on the
need for growth in power generation, our strong position in the country and our
strong and competent local team," says Scatec CEO Terje Pilskog.

Replicating successes from our hybrid solar and battery storage projects at
Kenhardt, we will proceed to construct one of Africa's first and largest
standalone dispatchable BESS systems. The project is located near Kathu,
Northern Cape, close to high power demand centres.

"We are showing and supporting that dispatchable energy and grid infrastructure
are cornerstones to the sustainability of South Africa's current and future
energy system. By unlocking more grid capacity, we are enabling further
electricity access, as well as enabling more renewable energy grid connections
in years to come," adds Roar Haugland, EVP Sub-Saharan Africa, Scatec.

"Standard Bank is proud to continue our long-standing partnership with Scatec as
the lead arranger for the groundbreaking Mogobe BESS project. This facility
represents a significant step forward in South Africa's energy transition,
building on our successful collaboration on projects like Kenhardt. We're
committed to financing innovative energy solutions that drive sustainable
development and economic growth in South Africa and across the continent," says
Rentia van Tonder, Head: Power - Corporate and Investment Banking, Standard Bank
of South Africa.

For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686,
 andreas.austrell@scatec.com
(https://www.globenewswire.com/Tracker?data=MIbljL7ouApKOXn3yHZ8y43eVco31akL7ato
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5cv_MLlFgdbc)
For media: Meera Bhatia, SVP Communications & Government Affairs, phone:
+47 468 44 959, meera.bhatia@scatec.com
(https://www.globenewswire.com/Tracker?data=FJGCxglDqftTSjzVKnQVmfvqmESh9FoDw4eF
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About Scatec
Scatec is a leading renewable energy solutions provider, accelerating access to
reliable and affordable clean energy emerging markets. As a long-term player, we
develop, build, own, and operate renewable energy plants, with 4.7 GW in
operation and under construction across four continents today. We are committed
to grow our renewable energy capacity, delivered by our passionate employees and
partners who are driven by a common vision of 'Improving our Future'. Scatec is
headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the
ticker symbol 'SCATC'. To learn more, visit www.scatec.com
(https://scatec.com/) or connect with us on LinkedIn
(https://www.linkedin.com/company/scatec).

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Meera Bhatia, SVP External
Affairs and Communications at Scatec ASA, on 18 October at 14:44 CEST.

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