South African independent power producer and energy trader NOA has reached financial close on a 349 MW solar project with Standard Bank, South Africa’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 once operational.

NOA acquired the project from Pure New Energy in April 2024, and construction work at the site began earlier this year. It is expected to begin producing energy in early 2027.

It forms part of the Khauta solar complex, totaling 506 MW in capacity, which also includes the 157 MW Khauta West project due to come online toward the end of next year. Together, the plants will be capable of supplying over 1 TWh annually to companies across several sectors, with energy distributed via Eskom’s grid.

The financial agreement takes the form of a payment guarantee facility structured by Standard Bank Group, which, according to a statement released by the South African Photovoltaic Industry Association, will “act as a financial catalyst, enabling NOA to free up equity capital that would typically be utilized as credit support … By unlocking this capital, NOA can accelerate the development of additional renewable energy projects, while maintaining its commitments under generator power purchase agreements.”

Karel Cornelissen, CEO of NOA, called the transaction “an evolution in how we finance renewable energy at scale in South Africa.”

South Africa deployed 1.1 GW of solar in 2024, following a record year for solar additions in 2023. The country’s newly approved Renewable Energy Master Plan, agreed upon in April, set a target of deploying at least 3 GW of renewables annually, increasing to 5 GW by 2030.