SOLA Group Begins Construction Of 300 MW Naos-1 Hybrid Solar And Battery Project In South Africa

SOLA Group has officially started construction of the Naos-1 Hybrid Solar and Battery Project near Viljoenskroon in the Free State, marking a major milestone for South Africa’s renewable energy sector. The project is the country’s first utility-scale solar plant designed to combine large-scale photovoltaic power generation with battery energy storage for electricity wheeling to private industrial customers through the national grid.

Naos-1 will have a generation capacity of 300 MW (435 MWp) along with a 660 MWh battery energy storage system (BESS). This hybrid design directly addresses the challenge of solar power intermittency. While solar plants generate electricity only during the day, the battery system will store excess energy produced during sunlight hours and release it during peak demand periods in the evening. This makes the power supply more stable and reliable, similar to conventional power stations, while remaining clean and renewable.

The project is supported by long-term power purchase agreements with two major industrial companies, Sasol and Air Liquide. These agreements ensure a steady revenue stream for the project while helping the companies reduce their carbon emissions. The electricity will support energy-intensive operations, including large-scale oxygen production facilities, with competitively priced renewable power.

Naos-1 has also achieved financial close, making it the largest privately contracted hybrid renewable energy project in South Africa to reach this stage. Funding was arranged through leading South African financial institutions. The financing consortium was led by the Development Bank of Southern Africa, with participation from Absa, Nedbank, RMB, and Investec. This strong financial backing highlights investor confidence in South Africa’s growing private power market.

According to SOLA Group’s management, the project reflects the rapid evolution of the country’s private energy sector. It shows that complex renewable energy projects combining solar and storage can be delivered through innovative partnerships and structured financing.

Construction activities are currently underway, and commercial operations are targeted for the first half of 2028. Naos-1 is part of a larger development pipeline for SOLA Group, which includes an additional 600 MW of hybrid renewable projects in advanced stages. By integrating battery storage with solar generation, the company aims to strengthen grid stability and accelerate South Africa’s transition toward a more reliable and low-carbon energy future.