Wedoany.com Report-Jun 12, South African independent power producer and energy trader NOA has finalized funding for a 349 MW solar project with Standard Bank, the country’s largest bank. The Khauta South Solar PV project, located near Welkom in Free State province, is set to become South Africa’s largest single-asset solar facility upon completion.

NOA acquired the project from Pure New Energy in April 2024, with construction already underway. The facility is expected to begin generating electricity in early 2027. It forms part of the broader Khauta solar complex, which has a total capacity of 506 MW, including the 157 MW Khauta West project, slated for operation by late 2026. Together, these plants will supply over 1 terawatt-hour of energy annually to various industries, distributed through Eskom’s grid.

The financial agreement, structured by Standard Bank Group, includes a payment guarantee facility. According to the South African Photovoltaic Industry Association, this arrangement “acts as a financial catalyst, enabling NOA to free up equity capital that would typically be utilized as credit support.” This approach allows NOA to redirect capital toward developing additional renewable energy projects while meeting obligations under power purchase agreements.

NOA’s CEO, Karel Cornelissen, stated: “This transaction represents an evolution in how we finance renewable energy at scale in South Africa.” The deal supports the country’s push for sustainable energy, following the deployment of 1.1 GW of solar capacity in 2024, after a record-breaking year for solar additions in 2023.

South Africa’s Renewable Energy Master Plan, approved in April 2024, sets a target of deploying at least 3 GW of renewable energy annually, with ambitions to reach 5 GW by 2030. The Khauta South project aligns with these goals, contributing to the nation’s efforts to expand clean energy infrastructure and meet growing energy demands.