PNE, a player in the renewable energy sector, has finalized the sale of its 350MW Khauta Solar PV facility situated in South Africa to local developer NOA Group.
Located near Welkom in the Free State province, this acquisition bolsters NOA's grid-secured assets to approximately 500MW, marking a significant stride in its portfolio enhancement and bringing it closer to its ambitious 5GW target.
The solar PV assets are poised for financial closure and the commencement of construction by the fourth quarter of 2024, underscoring NOA's commitment to expanding its renewable energy portfolio with the support of its shareholder AIIM and other key stakeholders.
Karel Cornelissen, Chief Executive of NOA Group, commented on the development, stating, “With $180m in equity financing already secured for development, we are scaling our operations, which includes an extensive pipeline of projects. By the end of this year, we expect to have approximately 450MW of our fleet of renewable energy facilities under construction.”
He further emphasized the alignment of NOA's growth trajectory with recent reforms in South Africa's electricity market, highlighting increased competition among electricity suppliers catalyzed by evolving wholesale electricity market frameworks and the release of a draft market code.
The projects, situated outside the Renewable Energy Development Zones (REDZ) 5, primarily in the Free State province, are interconnected through an overhead line (OHL) linking to the Leander Substation within Eskom's transmission corridor.
The Khauta cluster represents one of the largest solar ventures in the Free State, a region witnessing heightened interest, particularly with several large clusters nearing commercialization, as emphasized by NOA.
This burgeoning interest is attributed to improved grid access, a factor distinguishing it from other green energy hotspots like the Northern Cape, where capacity constraints are increasingly prevalent.
NOA will spearhead the efforts towards financial closure of the projects, with support from scheme developers WKN Windcurrent and PNE. This pivotal phase necessitates extensive collaboration to seamlessly align the commercial aspects of the sites with ongoing development endeavors.
Cornelissen reiterated the progress made, stating, “We are close to finalizing the selection of the EPC contractor and OEMs. With ongoing support from the developers, we are advancing the project towards financial close, aligning our commercial goals with the substantial groundwork already laid.”
