Among the key recommendations is an increase in import duties on lithium-ion batteries, with ITAC proposing that the general customs duty on fully assembled units be raised to 15%. This measure is intended to stimulate local renewable manufacturing by encouraging domestic production of energy storage systems, particularly as demand continues to rise across South Africa’s renewable energy sector. In parallel, ITAC is reassessing the “staged consignment” policy, which currently permits developers to import complete equipment packages for large-scale projects without incurring duties when components are not locally available. However, the Commission has identified that several items including solar panels, inverters, trackers, and steel tower sections can already be produced domestically. Under the proposed revisions, these components may no longer qualify for duty-free importation, further supporting local renewable manufacturing.

For solar panels specifically, authorities are adopting a phased transition. A temporary rebate on imported panels will remain in place until domestic assembly capacity reaches at least 50% of national demand. This approach is intended to maintain supply stability and prevent disruptions to ongoing renewable projects during the shift toward local renewable manufacturing. At the same time, the Public Procurement Act of 2024 is expected to play a central role in enforcing local content requirements, with public sector developments likely to be required to incorporate a defined share of locally produced components.

To ensure effective implementation of these measures, ITAC has proposed the creation of a dedicated advisory committee made up of industry experts. This group would provide guidance on trade policies and help maintain a balance between industrial development and practical project delivery. The proposals remain under review, with ITAC currently seeking stakeholder input and conducting consultations. The objective is to ensure that final policies support economic growth and the renewable energy transition without significantly increasing project costs, while continuing to advance local renewable manufacturing across the sector.

The project is designed to enhance grid resilience while enabling industrial users to cut dependence on traditional power sources. Through the use of solar photovoltaic technology, sunlight will be converted directly into electricity via specialized panels, offering a clean energy solution that produces no emissions during operation. In recent years, advancements in technology have improved the affordability of solar PV, making it an increasingly viable option. Given South Africa’s strong solar potential, the development of the largest single solar PV farm is viewed as both a practical and sustainable approach to meeting rising energy demand.

Standard Bank’s involvement reflects its continued emphasis on environmental, social, and governance priorities. As one of Africa’s largest financial institutions, the bank’s participation signals confidence in the renewable energy sector and its long-term prospects. Its role includes structuring the financial framework, overseeing risk management, and ensuring that capital is deployed efficiently throughout the project lifecycle. Meanwhile, Anthem contributes technical expertise and experience in renewable energy financing, supporting the delivery of a project that is both financially and technically robust. The timing of this collaboration is critical, as South Africa faces ongoing energy shortages, frequent power cuts, and an aging fleet of coal-based power plants, conditions that heighten the need for projects like the largest single solar PV farm.

Beyond its impact on energy supply, the initiative is expected to generate broader economic benefits. Job creation during both construction and operational phases is anticipated, alongside the development of local technical skills within the renewable energy sector. Access to reliable and affordable clean power will also help industries maintain competitiveness, particularly as global markets increasingly prioritize environmentally responsible supply chains. Overall, the largest single solar PV farm demonstrates how collaboration between financial institutions and energy specialists can accelerate renewable energy deployment, offering a model for similar developments across Africa while supporting economic growth and sustainability.

KaXu Solar One is a 100MW concentrated solar power (CSP) plant being constructed on a 1,100ha site near Pofadder in the Northern Cape Province of South Africa. It will be the first CSP plant in South Africa to use parabolic trough technology. The solar power project, scheduled for commissioning in 2015, will supply clean energy to approximately 90,000 African homes while offsetting 315,000t of CO2 emissions per year.

“KaXu Solar One is one of the 28 renewable energy projects announced by the South African Department of Energy (DoE) in 2011.”

The KaXu Solar One project is jointly owned by Abengoa Solar (51%), state-owned Industrial Development Corporation (IDC, 29%), and a community trust owned by the Broad-Based Black Economic Empowerment (BBBEE, 20%).

KaXu Solar One is one of the 28 renewable energy projects announced by the South African Department of Energy (DoE) in 2011. South Africa has set a goal to achieve up to 17,800MW of renewable energy by 2030 in an effort to reduce its dependence on oil and natural gas resources.

Ground breaking for the KaXu Solar One project was held in November 2012. The project is expected to create about 1,500 jobs during the construction phase and 65 permanent jobs during operation.

KaXu Solar One plant make-up

The KaXu Solar One facility will encompass a 310ha solar field installed with 1,200 parabolic trough solar collector assemblies (SCA) supplied by Abengoa Solar and assembled in 300 loops, with each SCA comprised of ten modules.

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The pivoting concave mirrors of the parabolic troughs focus sun light on to 4m long evacuated type receiver pipes or heat collection elements (HCE) running along the centre of each trough. The absorbed heat, in turn, heats up the oil flowing through the pipes. The heat transferred through the fluid is used to create steam to drive a 100MW turbine for power generation.

The solar thermal power plant, expected to operate for 30 years, will use the dry cooling method and provide three hours of thermal storage capacity using a two-tank indirect molten salt based thermal energy storage system. The stored thermal energy can be used to generate electricity for five hours after the sunset.

Power supply from KaXu Solar One

The power generated from the KaXu Solar One plant, which is estimated at 330,000MWh per year, will be sold to the South African electricity utility Eskom under a long-term power purchase agreement.

“The plant is expected to operate for 30 years.”

A 132kV overhead transmission line will be built to connect the KaXu Solar One facility to the Eskom Network through Eskom’s Paulputs Transmission Substation in Northern Cape, which is located 5km away from the plant site.

Financing for the CSP power project

The International Finance Corporation, a member of the World Bank Group, is providing direct financing of R1.25bn ($143m) for two CSP projects in South Africa including KaXu Solar One and the 50MW Khi Solar One project, which is also being developed by Abengoa. The IFC has also arranged $264m of parallel loans for the construction of these two projects.

The lenders co-ordinated by IFC for the KaXu Solar One project include Clean Technology Fund (CTF), Development Bank of Southern Africa (DBSA), FirstRand Bank, IDC, and Nedbank.

Contractors involved

Abener and Teyma, two subsidiaries of Abengoa, were jointly awarded the engineering, procurement and construction (EPC) contract for the KaXu Solar One project.

Rioglass manufactured the mirrors and Schott is the supplier of HCEs for the parabolic troughs used in the project. Siemens supplies the steam turbine for the solar thermal power plant. Mott MacDonald conducted the feasibility study for the project.

The project will be developed and operated by California-based solar developer SolarReserve and its consortium partners Kensani and Intikon Energy. The project is designed to operate for more than 25 years.

The plant will generate clean, renewable energy sufficient to power more than 30,000 homes in South Africa. It is expected to offset 145,891t of carbon dioxide every year from the atmosphere.

Jasper solar power plant details

The Jasper solar power project is located adjacent to the 75MW Lesedi solar PV power plant which is expected to be operational by mid-2014.

The Jasper solar project will be spread over in 180ha and comprise of more than 325,000 Yingli YL295P-35b multi-crystalline modules with a peak power rating of 295W.

The plant will also feature 78 INGECON® SUN PowerMax central inverters with 1MW AC rated power. The inverter is equipped with an advanced air cooling system, which helps in providing 1,019kW of peak power at temperatures up to 45ºC. The inverters comprise of a group of radial fans that provide air circulation inside the equipment thereby increasing its performance.

Development details and benefits of the South African solar power project

South African Department of Energy initiated the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to fulfil its commitment of developing 8,400MW of solar PV energy by 2030.

The consortium of SolarReserve, Kensani and Intikon Energy was awarded the Jasper project in the second round of the REIPPPP. It is the third project being undertaken by the consortium after the Lesedi and Letsatsisolar photovoltaic power plants which have an installed capacity of 75MW each.

Apart from generating clean sustainable energy, the Jasper solar power plant will also promote economic development and help in job creation. It is expected to create approximately 300 construction, and 50 permanent and operational jobs in addition to a number of indirect and induced jobs.

The project also planned to set aside a portion of the total projected revenues for promoting the enterprise and socio-economic development of the surrounding regions.

Power transmission

The entire power generated at the Jasper solar power project will be sold to Eskom, South Africa’s state-owned power utility, under a 20-year power purchase agreement.

Financing for the Jasper solar power plant

The total investment on the Jasper solar power plant is estimated to be ZAR 2.3bn (approximately $260m). Kensani Eaglestone Capital Advisory acted as the financial adviser for the project.

The project is being financed through a combination of equity and debt. The equity investment was made by a group of companies including Google, the Public Investment Corporation (PIC), Kensani Capital Investments, SolarReserve, Intikon, Development Bank of South Africa, and the P.E.A.C.E. Humansrus Fund. Rand Merchant Bank also partly financed the project and also acted as the sole mandated lead arranger for the debt funding requirements.

Baker & McKenzie acted as the legal advisor for the financing.

Contractors involved

The construction contract worth $150m was awarded to the consortium of Iberdrola and South African company Group Five. The contractual scope also includes the plant development, the transformer substation and a 132kV overhead power line, feeder lines, as well as plant operation and maintenance over the next 15 years.

Iberdrola subcontracted Yingli Green Energy for the supply of the PV modules. Ingeteam is the supplier of inverters, and control system for the Jasper PV plant.