SOLA Group has reached financial close on its Naos-1 hybrid solar PV and battery energy storage project. The project comprises a 435 MWp solar photovoltaic (PV) plant, paired with up to 855 MWh of battery energy storage, near Viljoenskroon in the Free State.
According to SOLA, Naos-1 is the largest privately contracted hybrid renewable energy project to reach financial close in South Africa to date and the first utility-scale solar-plus-storage project purpose-built to supply private end users using a time-of-use contract structure.
Electricity output will be supplied under long-term power purchase agreements to Sasol and Air Liquide with delivery structured via wheeling across the national grid.
“While traditional renewable projects often struggle to meet peak evening demand, Naos-1’s hybrid design allows it to store low-cost solar energy and dispatch it when the grid needs it most. This provides Sasol and Air Liquide with a reliable supply of clean energy at competitive tariffs,” says Jonathan Skeen, MD: Commercial at the SOLA Group. The project has secured funding through a multi-lender project finance process involving South African commercial banks with the Development Bank of Southern Africa as the largest senior debt financier alongside Nedbank, RMB, Investec and Absa. Equity financing has been provided by RMB and Sanlam.
SOLA said the project is 100% South African-owned, with more than 51% black ownership, and is majority owned by the SOLA Group in partnership with Ubuzwe. Engineering, procurement and construction will be undertaken by a joint venture between SOLA Build and WBHO.
Construction is underway with commercial operation targeted for the first half of 2028.
