Is South Africa’s 349-MW Solar Project by NOA a Game Changer or Just Another PR Stunt

Written By: Faith Jemosop

South Africa has just witnessed a historic announcement: the financial close of the 349-megawatt (MW) Khauta South Solar PV Project, led by renewable energy developer NOA and supported by Standard Bank. Touted as the largest single-asset solar project in the country, it has been praised for promising cleaner energy, job creation, and grid stability.

But the real question is: How much of this is real, and how much is strategic optimism? Are the promises of stable power, green jobs, and economic revival grounded in facts or are we once again being sold a feel-good story during a time of power desperation?

Let’s dig deep.

Is 349 MW Really That Significant?

Let’s begin with the capacity. At 349 MW, Khauta South is indeed the largest single solar project in South Africa to reach financial close. Combined with the adjacent Khauta West (157 MW), the full complex reaches 506 MW. Sounds big, right?

But here’s some perspective:

• Eskom’s total capacity sits around 45,000 MW.
  
• On a bad day, load shedding sheds over 6,000 MW from the national grid.
  
• So this project, while large, contributes less than 1% of Eskom’s generation capacity.
  

Will this project end load shedding?
No. It will help alleviate pressure, but won’t solve the problem alone.

That said, it’s a step in the right direction, particularly because it represents private-sector-led capacity, not more strain on Eskom’s aging fleet.

Will It Really Bring Light to Ordinary South Africans?

NOA plans to wheel electricity through the Eskom grid to private buyers, like Redefine Properties, a major real estate company. That means the power isn’t directly going into households, but into businesses and commercial buildings.

So what does that mean for the average citizen?

• Direct access? No. Unless you work or live in buildings powered by Redefine and other corporate off-takers, you won’t receive this electricity.
  
• Indirect benefit? Possibly. If commercial users shift to this power, less pressure is placed on Eskom, freeing up more power for residential use.
  

This is more of a corporate decarbonization win than a public power fix, but it can still indirectly ease the grid burden for all South Africans.

Is the Job Creation Claim Real or Inflated?

According to developers, the Khauta South project will create around 1,000 jobs during construction and a smaller number for long-term operations.

But here’s the nuance:

• These are temporary jobs, lasting 12–24 months during the build phase.
  
• Most will be low- to mid-skill construction roles, not long-term careers.
  
• However, NOA has pledged to invest in training and skills transfer, which could help workers find future employment in the growing renewables sector.
  

Will it solve local unemployment in the Free State?
No, but it will create opportunities, especially in a province with 38% unemployment.

It’s not a silver bullet, but it’s a genuine chance for youth and local contractors to engage in meaningful work.

What About the Financing Is It Just Hype?

One of the most talked-about parts of this deal is its innovative financing model. NOA worked with Standard Bank to create a Payment Guarantee Facility, a first-of-its-kind mechanism in Africa.

What does it do?

• It reduces the financial risk of delayed payments under Power Purchase Agreements (PPAs).
  
• This makes projects more bankable, allowing developers to deploy capital faster and at lower cost.
  
• It could unlock a pipeline of 5,000 MW if adopted across other projects.
  

Is that real?
Yes. It’s a significant financial innovation, not marketing fluff. According to analysts, this structure could be a template for future clean energy projects in Africa, especially where public risk is high.

Will It Actually Help South Africa Fight Climate Change?

Yes, but modestly. Let’s unpack the claims.

• The project will avoid about 800,000 tons of CO₂ emissions annually, equivalent to removing roughly 170,000 cars off the road.
  
• It will generate around 1,000 GWh of clean electricity per year.
  

Also read: Namibia Secures $106 Million Loan for Diaz Wind Project

For a country where over 80% of power still comes from coal, that’s progress.

But here’s the reality check:

• South Africa emits over 450 million tons of CO₂ annually.
  
• This project will reduce 0.18% of national emissions.
  

So, while symbolically powerful, it’s only one tile in a much larger energy mosaic. Still, every solar project like this helps move the needle and signals to investors that green energy is viable here.

Is This a Political Stunt or a True Transition?

There’s a risk that large infrastructure projects are used as political cover, especially in times of load shedding, election tension, or public anger at Eskom.

But this project is led by the private sector, NOT the government, and funded through commercial channels, not taxpayer bailouts. That gives it real credibility.

Also:

• There were no high-profile politicians at the announcement.
  
• It wasn’t bundled with government promises or slogans.
  
• The deal was first structured in 2023, long before the 2024 elections.
  

This isn’t political theatre. It’s a genuine, market-driven initiative.

Can It Be Scaled Across the Country?

The key question is: Can this success be replicated?

YES, if three things happen:

1. Grid upgrades: Eskom’s infrastructure must be modernized to handle more wheeled power.
   
2. More buyers: Private offtakes (like mines, malls, data centres) must keep buying clean power.
   
3. Financing reform: Banks and developers must continue to innovate financing models like the guarantee facility used here.
   

Also read: Why the Nigerian Government Warns Against Rooftop Solar Panel Installation

If this model scales, South Africa could see thousands of new megawatts come online without burdening Eskom directly.

So.. Is It Too Good to Be True?

Let’s be honest: this project won’t eliminate load shedding, end unemployment, or decarbonize the country overnight. But it’s not political hype or marketing spin either.

It’s a well-structured, privately financed, technically sound solar development that:

• Will ease pressure on the national grid;
  
• Create temporary jobs and potentially long-term careers;
  
• Introduce financing models that can unlock billions;
  
• And send a strong signal that South Africa is ready to transition.
  

It’s not a miracle. But it’s real progress.

And for millions of South Africans tired of flickering lights, inflated energy bills, and climate anxiety, progress is exactly what we need.