NOA Group’s SA wind project gets funding

From the newsletter

Renewable energy independent power producer, NOA Group, has reached financial close on its 94.5 MW wind project in South Africa. This is the second NOA project backed by Standard Bank, following the $272 million Ishwati Emoyeni Wind Farm, and is expected to generate 287 GWh of electricity annually and offset hundreds of thousands of CO2.

• Only three African countries, Egypt, Morocco, and South Africa, have installed more than 2,000 MW of wind energy capacity. Despite Africa’s vast potential in wind, solar-led investments have saturated the market due to their competitive cost.

• We are witnessing a shift from public to private procurement in South Africa’s renewable energy sector. The Wind Garden project is part of a larger trend where private off-taker agreements and independent power producers are increasingly leading renewable energy projects.

More details

• NOA Group recently acquired a trading licence from the National Energy Regulator of South Africa, enabling it to buy and sell electricity directly on the market. In the larger African context, it paves the way for more independent power producers to access and influence energy markets across the continent.

• There is a need for diversification in renewables, especially as solar power alone cannot meet the continent's growing needs. The Wind Garden project will improve grid stability, reduce intermittency, and create a more reliable energy supply.

• South Africa’s renewable energy market is projected to more than double its installed capacity, from 15,000 MW in 2024 to 32,000 MW by 2030, with private sector demand as a key driver. The private procurement market for wind and solar could reach $8 billion by 2030.

• Historically, large-scale renewable energy projects in South Africa were primarily developed through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which prioritised state-led projects. The implementation of renewable energy policies has allowed private companies to contract directly for renewable power. Other African countries could benchmark these policies to further renewable energy adoption.

• Banks have been at the forefront of financing renewable energy projects, a trend that reverberates across the continent. Apart from Standard Bank, the South African bank, Investec, financed the 80 MW Noupoort Wind Farm, and Nedbank’s financing helped the 138 MW Karusa Wind Farm get off the ground. 

Our take

• While solar farms multiply across the continent (2,300 MW added in 2024 alone).  Wind energy's contribution remains stuck at 3% of Africa's renewable mix. That imbalance creates opportunity, and Standard Bank is seizing this opportunity.

• The conversation about policy and regulations never gets old. NOA’s trading license has enabled two major wind projects in South Africa in less than 3 months to reach financial close. By enabling direct market access, South Africa has created a blueprint for private-led wind expansion.

• Banks are finally diversifying investment portfolios in renewables. Lenders are now chasing wind’s untapped potential a, a sector where fewer players mean higher margins and first-mover market advantage.