South Africa’s energy transition is accelerating and a major milestone has just been reached. A landmark solar and battery hybrid project is set to transform how large businesses access renewable energy.
Project Naos-1 represents the largest solar and battery facility developed specifically for private offtakers in South Africa. It signals a shift in how the private sector can secure reliable, affordable and clean electricity through the country’s evolving energy market.
A Landmark Moment for Private Renewable Energy in South Africa
Naos-1 will combine 300 MW of solar PV generation (435 MWp installed capacity) with large-scale battery storage, creating a hybrid system capable of supplying reliable renewable power to private businesses. The facility will include 660 MWh of contracted battery storage, enabling the project to store solar energy generated during the day and dispatch it when it is most needed.
This hybrid approach addresses one of the biggest challenges with renewable energy: variability. While traditional solar plants only generate power when the sun shines, integrating battery storage allows energy to be delivered during evening peaks or periods of high demand.
In practical terms, this means businesses can access clean energy that is both renewable and dispatchable.
Powering major industrial businesses
The electricity produced by Naos-1 will be supplied to major industrial customers Sasol and Air Liquide through long-term power purchase agreements (PPAs). These agreements ensure a stable supply of renewable electricity at competitive tariffs while supporting both companies’ decarbonisation strategies. The energy will be wheeled across South Africa’s grid, allowing renewable energy generated in one location to be delivered to private offtakers located elsewhere in the country. This model is becoming a cornerstone of South Africa’s emerging competitive electricity market.
Importantly, Naos-1 is designed specifically for this purpose. It is described as South Africa’s first utility-scale solar PV and battery storage project built for wheeling electricity to private end-users.
What makes this project the largest of its kind
While renewable energy projects for government procurement programmes have existed for years, the private market has only recently begun scaling to this level.
Naos-1 stands out because of three key factors:
- Scale: At 300 MW of solar capacity paired with hundreds of megawatt-hours of battery storage, it represents one of the largest hybrid renewable energy facilities developed specifically for private corporate offtakers in South Africa.
- Hybrid design: The integration of battery storage enables the project to provide dispatchable renewable power, delivering electricity beyond daylight hours and improving reliability.
- Private offtaker model: Rather than supplying Eskom or government procurement programmes, the project is designed to supply large private companies directly through long-term PPAs.
This model is increasingly attractive for businesses seeking cost stability, energy security and lower carbon footprints.
A step forward for South Africa’s private power market
Projects like Naos-1 highlight how rapidly the private electricity market is evolving in South Africa. Corporate renewable energy procurement is becoming a key driver of new generation capacity. As businesses look to reduce emissions and manage rising electricity costs, privately contracted renewable energy is emerging as a compelling solution.
Hybrid projects that combine solar with battery storage will play a particularly important role. By converting intermittent renewable energy into dispatchable power, they bring renewable supply closer to the reliability traditionally associated with conventional generation.
For the broader energy system, this means:
- Greater resilience in the electricity supply
- Reduced reliance on fossil fuels
- More competitive electricity markets
- Accelerated progress toward decarbonisation
The future of business energy in South Africa
South Africa’s energy transition will increasingly be driven by partnerships between energy developers and private companies. Large-scale renewable projects backed by corporate offtakers demonstrate that businesses can play a leading role in building the country’s future energy infrastructure.
As regulatory barriers fall and the wheeling framework continues to mature, more companies will gain access to clean electricity directly from renewable energy producers. The result is a new energy landscape where businesses have greater choice, greater reliability and greater control over their energy supply.
Ready to power your business with green energy?
The opportunity to access renewable electricity is no longer limited to the largest industrial players. SOLA helps companies across South Africa to purchase clean electricity generated from solar plants and delivered via the national grid.
If your business is looking to reduce emissions, stabilise energy costs and move toward a more sustainable future, you can get started today. Visit our Buy Energy page to explore available plans and sign up for clean electricity for your business.