A mega-scale solar and battery storage hub is under construction on a 560 ha site in the grid-ready Free State province – a development that comprises two solar PV farms with a combined capacity of 506 MW and advanced plans for the construction of an associated battery energy storage system (BESS). The NOA Group, which is developing the project to supply private customers, reports that the 157 MW Khauta West solar PV facility achieved financial close this month. This, after the 349 MW Khauta South advanced to financial close in June.
With preparations under way for the launch of the South African Wholesale Electricity Market (SAWEM) in 2026, new research highlights how decisions on the future regulated tariff structure, including the Megaflex bulk user tariff, could affect the market’s objectives of advancing competition and catalysing further investment. Conducted by financial advisory services firm Cresco, the analysis has been prepared in response to both approved changes to Eskom’s retail tariff plan by the National Energy Regulator of South Africa (Nersa) in early 2025, as well as possible future changes that could result in shifts in the composition of the tariff in relation to the variable and fixed cost components and time-of-use adjustments based on demand and energy supply changes.
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