Scatec ASA

Capital/Financing Update • Oct 18, 2024

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

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

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.