SolarAfrica and Norsk Renewables advance strategic Nyakallo solar project toward financial close

SolarAfrica and Norsk Renewables have announced that SolarAfrica has entered into an agreement to acquire the Nyakallo solar project from Norsk Renewables.

Located in Limpopo, South Africa, Nyakallo is a strategically positioned utility-scale solar and battery storage project expected to deliver grid-connected renewable power to South African businesses from the second half of 2028. Together, the two companies will progress the project toward financial close and construction.

Originally developed by Norsk Renewables with development support from Greensoll, the project has been advanced through key early-stage milestones including grid connection, permitting and initial design. Under the transaction structure, SolarAfrica will act as long-term owner and funding sponsor, while Norsk Renewables will continue to support the project through development, financing preparation and commercialisation activities.

Located within one of Eskom’s key transmission corridors, Nyakallo is uniquely positioned to connect directly into existing grid infrastructure. At a time when renewable energy projects are frequently delayed by transmission constraints, this enables the project to proceed without reliance on long-lead transmission upgrades – a significant advantage in the current market.

With financial close anticipated within the next 12 months, the project is expected to begin evacuating power by the second half of 2028, offering commercial and industrial (C&I) businesses earlier access to new renewable capacity at scale.

David McDonald, CEO of SolarAfrica, says: “Nyakallo is a highly attractive project that aligns well with SolarAfrica’s strategy of building a diversified portfolio of utility-scale renewable energy assets across South Africa. Its strong grid position and advanced development status make it an important addition to our pipeline as we continue expanding renewable energy supply to the commercial and industrial market.

“The project will follow a similar offtake structure to SolarAfrica’s broader portfolio, with a combination of large anchor customers and energy traders expected to purchase capacity. This model enables greater flexibility in how businesses procure electricity, extending access beyond traditional long-term power purchase agreements and opening the market to a wider range of C&I users.”

Beyond adding new generation capacity, the project forms part of a broader shift in how energy is bought and sold in South Africa, as the market moves toward a more decentralised, customer-driven model. Businesses are increasingly looking for greater control and flexibility in their energy supply, moving away from rigid, long-term contracts toward more dynamic procurement models enabled by trading and wheeling.

Nyakallo will include a battery energy storage system component, allowing energy generated during the day to be stored and used outside of solar production hours. This supports a more balanced and reliable energy supply and forms part of SolarAfrica’s broader approach of combining utility-scale generation, storage, wheeling and trading to deliver a holistic energy solution to customers.

Torbjørn E. Kirkeby-Garstad, CEO of Norsk Renewables, comments: “Nyakallo is a highly strategic project, both in terms of its location and its role in South Africa’s evolving energy landscape. We are proud to have advanced the project through key development milestones and look forward to continuing to work alongside SolarAfrica as the project progresses.

“By partnering with a highly capable long-term owner and funding partner, we are helping ensure the project is positioned for successful delivery. In a market where timelines continue to slip, projects with this level of certainty are increasingly hard to come by.”

The transaction further strengthens SolarAfrica’s growing portfolio of utility-scale projects, approximately 1.5GW already in advanced development. It also demonstrates Norsk Renewables’ strategy of originating and developing high-quality renewable energy assets and partnering with long-term owners to bring them through financial close and into construction.

Located in a province historically associated with coal-based generation, the project will also contribute to South Africa’s ongoing Just Energy Transition through the addition of new renewable energy capacity.

McDonald concludes: “We’re building for a future where businesses have far more choice in how they access and manage energy. Projects like Nyakallo are a key part of this – not just adding capacity but enabling a more flexible, resilient and competitive energy market.”