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South Africa’s Energy Answer: Megaprojects That Eclipse Traditional Plants

South Africa’s Energy Answer: Megaprojects That Eclipse Traditional Plants
Wednesday, 17 September 2025 08:40

• South Africa expands massive energy clusters, led by 506 MW Khauta
• Projects include solar, wind, storage; major private buyers involved
• Clusters offer reliable, large-scale alternatives to Eskom power

South Africa is pioneering a unique approach to energy transition on the continent, with integrated renewable energy projects reaching hundreds of megawatts.

On Tuesday, September 16, NOA Group announced the financial close of the Khauta West solar project (157 MW), which completes the Khauta Cluster in the Free State province. With a total capacity of 506 MW, the cluster includes a battery storage system to ensure reliable power production. Upon commissioning in early 2027, NOA says it will be one of the country’s largest solar assets.

This trend of large-scale clusters is not isolated. In July 2025, Scatec was awarded preferred bidder status for the Kroonstad PV Cluster (846 MW), also in the Free State. This portfolio combines three power plants—Oslaagte 2 and 3 (293 MW each) and Leeuwspruit (260 MW)—all backed by 20-year power purchase agreements.

Meanwhile, EDF Renewables is developing two wind and solar clusters in the Koruson area, on the border of the Eastern Cape and Northern Cape provinces. The first, Koruson 1 (420 MW), includes three wind farms currently under construction. The second, Koruson 2 (520 MW), is a joint venture with Anglo American and consists of two wind projects and one solar project, with a dedicated 400 kV substation.

These examples illustrate that South Africa’s energy clusters far exceed the typical 10 to 100 MW solar and wind projects found elsewhere on the continent. They often share common infrastructure like substations and transmission lines and sometimes include storage solutions. Their funding models vary, ranging from public power purchase agreements to direct contracts with large private consumers such as mines and data centers.

The relevance of these clusters goes beyond their sheer installed capacity. By grouping projects, South African developers are creating large-scale, predictable, and cost-competitive power generation. This allows large industrial consumers to secure clean electricity in sufficient quantities, reducing their reliance on the national utility, Eskom.

Abdoullah Diop

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