Reimagining solar power in Africa

As the global energy sector races to meet net-zero commitments, utility-scale solar is undergoing a fundamental transformation, according to experts at Norwegian-based firm Scatec, which is heavily involved in Africa’s evolving power industry

No longer defined by megawatt capacity alone, solar projects are now being evaluated on their ability to deliver dispatchable power, enhance grid stability and provide critical ancillary services.

Nowhere is this evolution more pronounced than in Africa, particularly South Africa, where the Just Energy Transition is accelerating the shift towards resilient, grid-integrated renewable energy.

“Across the continent, and especially in South Africa, we’re seeing a strategic move away from variable-only generation,” said Jaco Uys, senior vice-president projects sub-Sahara Africa at Scatec.

“What matters now is whether a project can deliver clean energy consistently on demand day or night — this means thinking beyond solar panels, to fully integrated energy systems.”

South Africa’s Eskom-constrained grid has spotlighted the urgent need for firm, responsive power.

Grid compatibility is no longer optional, it is central to energy planning.

As independent power producers (IPPs) are increasingly permitted to co-develop transmission infrastructure under the country’s new independent transmission projects (ITP) framework, the focus is shifting to hybrid models that combine generation with advanced control technologies.

At the forefront of this movement is Scatec’s Kenhardt project, a hybrid solar-battery development in the Northern Cape.

Boasting 540MW of solar PV paired with 225 MW/1,140 MWh of battery storage, Kenhardt delivers consistent dispatchable energy under a 20-year power purchase agreement with Eskom.

“Kenhardt isn’t just a solar project,” said Nic Bailey, senior vice-president operational excellence and digitalisation at Scatec, “it’s a demonstration of what’s possible when you pair clean generation with flexible output. We’re not just injecting power into the grid, we’re actively supporting it.”

But we’re not witnessing seismic shifts in solar technology, Bailey added. “Instead, we’re seeing incremental improvements in efficiency, equipment size and LCOE year on year. That’s a positive for IPPs like us -- it allows for predictability in planning and stability in execution.”

In this new era, solar-plus-storage is not a luxury, it is a necessity.

“Amid challenges in the solar module market, the booming battery energy storage (BESS) sector is emerging as a vital growth area” added Uys. “It’s reshaping the value chain and fuelling supplier diversification.”

Projects like Kenhardt prove that renewable energy can be clean, reliable and bankable, aligning financial models with long-term energy security goals.

As South Africa continues to unlock private sector participation and modernise its energy infrastructure, the lessons from Kenhardt and other grid-resilient projects are resonating far beyond its borders.

Hybrid solutions represent the next chapter in the solar story — offering not just power, but progress.

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Eskom invites tenders for green hydrogen pilot at RT&D centre to support South Africa’s clean energy goals

Eskom has issued a tender for the construction of a pilot Renewable Hydrogen Facility (RHF) at its Research, Testing and Development (RT&D) centre in Johannesburg, marking a significant step in its decarbonisation journey

The initiative forms a crucial part of Eskom’s broader vision to help South Africa reach net-zero carbon emissions by 2050. The RHF pilot is expected to play a pivotal role in shaping Eskom’s decarbonisation roadmap while also demonstrating the long-term value of green hydrogen as a viable energy storage option.

The project is designed to help Eskom better understand the potential integration of green hydrogen into its operations. It also presents an opportunity to navigate the regulatory landscape surrounding hydrogen and build the internal expertise required for future implementation.

“Eskom is following a differentiated approach and multiple pathways to move from a high-carbon to low-carbon economy, and we are aggressively seeking creative, technology-led solutions to achieve this,” said Eskom group CEO, Dan Marokane.

“This is about harnessing clean energy for inclusive economic growth. The pilot facility will help our research teams understand hydrogen’s full value chain, from production to use, and ensure we’re ready to play a leading role in the transition responsibly and inclusively,” continued Marokane.

This pilot effort is part of a broader strategy within RT&D, which already runs a 400kW solar photovoltaic (PV) research pilot that includes battery testing. These existing facilities have delivered valuable data across Eskom’s operations, particularly in emissions and energy efficiency.

Recently, Eskom also signed a Memorandum of Understanding (MoU) with Exxaro Resources, aiming to partner on projects that address carbon emissions, air quality improvements, and South Africa’s just energy transition. In addition, Eskom is accelerating the creation of a dedicated Renewable Energy Business, and has launched a tender to identify partners with a proven track record in renewable energy development.

Eskom’s involvement in hydrogen innovation dates back to 2020. The utility was instrumental in shaping the South African Hydrogen Society Roadmap in 2021 and has supported national initiatives aimed at mainstreaming hydrogen as a future energy carrier.

The company continues to balance its energy mix – maintaining current coal and nuclear output while adding technologies such as gas, renewables, battery storage, and hydrogen. This approach is central to its mission of meeting increasing electricity demand through sustainable and secure methods.

Eskom’s RT&D business unit plays a critical role in identifying, testing, and applying innovative technologies that can boost efficiency, reduce emissions, and ensure Eskom stays at the forefront of energy transformation. Its efforts are aligned with supporting South Africa’s competitiveness and long-term environmental goals.

Looking ahead, Eskom has committed to delivering 2GW of clean energy by 2026, with a longer-term development pipeline of more than 20GW. These milestones underline the utility’s intent to diversify South Africa’s energy landscape, attract fresh investment, and create lasting value for the nation.

Supporting Mozambique's energy sector

The African Development Bank Group (AfDB) has approved US$43.6mn for the construction of the Namaacha–Boane transmission line and related electricity infrastructure in Mozambique

Mozambique’s national power utility, Electricidade de Moçambique (EDM), will implement the project in partnership with Central Eléctrica da Namaacha (CEN), the project company, a private sector-led development group involving Globeleq Africa Limited and Source Energia.

“This project is a major step forward in Mozambique’s transition to a low-carbon energy future,” said Kevin Kariuki, the bank’s vice-president for power, energy, climate and green growth. “It will deliver affordable electricity, support local industry, and improve livelihoods.”

The new infrastructure will transmit up to 332 gigawatt-hours  of clean wind energy from the future 120 MW Namaacha wind farm in the southwestern part of the country to homes and businesses across Mozambique and in the wider southern African region.

The wind farm project, located about 50 km west of Maputo, is also being put together by Globeleq and Source Energia.

Under the project, two new 43 km, single-circuit, 66 kV transmission lines will be constructed in addition to network upgrades and equipment to ensure stable power delivery.

Once completed, the project will  support thousands of new electricity connections in rural and underserved communities.

It will also cut carbon dioxide emissions by over 71,000 tons annually and bolster the regional trade in energy within the Southern African Power Pool (SAPP).

The total financing package comprises US$33.2mn from the African Development Fund, a part of the AfDB, and US$10.4mn sourced from its Climate Action Window, a dedicated fund supporting 37 low-income African countries with climate-resilient infrastructure to meet commitments under the Paris Agreement. Mozambique government is also contributing to the project.

“This investment strengthens the backbone of Mozambique’s power system while accelerating access to clean energy for people who need it most,” said Wale Shonibare, director of the bank’s Energy Financial Solutions, Policy, and Regulations Department.

The project also aligns with the AfDB’s “Light Up and Power Africa” strategic priority as well as Mozambique’s goal, in alignment with the Mission 300 initiative, to achieve universal electrification by 2030.

Over 600 million people in Africa still lack access to electricity, the lowest access rate of any continent.

In response, the AfDBk, the World Bank and other partners launched Mission 300 in 2024, an initiative that brings together African governments, the private sector, and development partners to deliver affordable power, expand electricity access, boost efficiency, and attract private investment to the sector.

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Wärtsilä to supply, operate 30MW power facility for Elektron Energy’s VIPL on Victoria Island, Lagos. (Image source: Wärtsilä)

Wärtsilä, the global technology group, has been selected to supply and operate key power generation systems for a new 30MW natural gas-fired power plant on Victoria Island, Lagos

The project is being executed by Victoria Island Power Ltd. (VIPL), a special purpose entity established by Nigerian energy developer Elektron Energy. Wärtsilä will also manage operations and maintenance (O&M) of the facility for an initial five-year term.

The contract, which includes equipment delivery and O&M services, was signed in the fourth quarter of 2024. The new facility will be embedded within the Eko Electricity Distribution Company (EKEDC) network at its NEPA Close site and is intended to improve electricity reliability for EKEDC’s consumers.

The project’s structure relies on strong collaboration between Elektron Energy and its Nigerian partners. VIPL has entered into power purchase agreements (PPAs) with commercial clients under a service-based tariff model.

“Elektron has conceptualised, developed, and funded the IPP and has secured the implementation by engaging Wärtsilä to assume single point responsibility for the major construction and operational aspects related to the eventual power generation facility. This pioneering project relies on reciprocating internal combustion engine (RICE) technology that has the efficiency and flexibility to deliver clean and reliable electricity to our customers,” said Deen Solebo, co-CEO & chief financial officer at Elektron Energy.

Wärtsilä’s scope includes three 34SG gas engine-generator units and all required auxiliary components. The modular design of the facility allows for a future fourth engine to be integrated with minimal interruption.

“I was very impressed by Wärtsilä’s state-of-the-art manufacturing facilities during my visit to the Sustainable Technology Hub in Vaasa, Finland in late Q3 2024 and am happy with the readiness of the engine-generator sets. In parallel, clearing and preparation activities at the NEPA Close Site are progressing well and are due for completion within Q2 2025, after which construction can start. Commissioning is expected 15 months thereafter and the Operations & Maintenance agreement is timed to commence prior to the new build project reaching commercial operations date (COD),” remarked Solebo.

Marc Thiriet, energy business director, Africa at Wärtsilä Energy, added, “Wärtsilä’s core competence in the engine power plant and services aspects represents a unique combination of a global company with a local presence that provides developers and financiers the comfort to invest and gives end-customers the confidence to sign up for PPA’s with medium to long-term tenures. The Wärtsilä solution is extensively adopted by industrial, utility & IPP customers worldwide and the excellent credentials and track record have been recognised as a great value proposition by lenders, insurance companies, and multi-lateral funding institutions.”

Funding for the project has been made possible through support from several key institutional investors and financial organisations.

“Elektron is especially grateful to the invaluable contributions of its institutional investors and funding partners who have made this project possible including ARM Harith Infrastructure Fund LP, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBN Quest, and Stanbic Infrastructure Partners,” added Solebo. 

As Nigeria continues to seek dependable and scalable power infrastructure, this Victoria Island facility is set to become a benchmark for future independent power projects in the country, especially those that are locally developed and financed.