SolarAfrica, a leading renewable energy developer specialising in the commercial and industrial (C&I) sector in South Africa, has achieved a significant milestone in its flagship utility-scale solar project, SunCentral. The company has successfully achieved a R1.8 billion financial close for the first 114 MW phase of the project, backed by funding partners Investec and RMB.
The SunCentral solar photovoltaic (PV) plant will be situated between Hanover and De Aar in South Africa’s Northern Cape province.
The project is being developed in three phases, with Phase 1 comprising 342 MW. This initial phase will be rolled out in stages, with three 114 MW facilities delivering renewable energy to a diverse group of off-takers via South Africa’s power grid through wheeling arrangements. Subsequent phases, Phase 2 and Phase 3, will expand SunCentral’s total capacity to 1 GW.
Unlike similarly sized projects that offer wheeling on a one-to-one basis (with one generation plant supplying one off-taker), SolarAfrica’s project will offer wheeling on a one-to-many basis, making it available to a wider pool of businesses in South Africa.
“Reaching financial close on the first 114 MW of our utility-scale wheeling development and Main Transmission Substation (MTS) investment marks a significant milestone in our commitment to advancing sustainable energy solutions for our customers in the commercial and industrial sectors,” said SolarAfrica’s Chief Investment Officer, Charl Alheit.
Alheit emphasised that the significant scale of SunCentral will enable more businesses nationwide to access cost-effective and sustainable energy. “We are thrilled to witness this project progressing, as it allows us to play a key role in the energy transition while providing lasting value to our customers,” he said.
SunCentral project to be a blueprint for SolarAfrica projects
SolarAfrica, part of the Starsight Energy Africa Group, highlighted that the success of SunCentral will act as a blueprint for similar (and possibly smaller) off-site generation projects in other key African markets in which the Starsight Energy Africa Group companies operate.
“The construction of SolarAfrica’s SunCentral is a critical step in our journey to expand clean energy adoption across Sub-Saharan Africa, ” says Paul van Zijl, Group CEO of Starsight Energy Africa Group. “We are excited to move this project forward and continue delivering long-term value to our customers,” he says.
SolarAfrica is backed by leading investors, African Infrastructure Investment Managers (AIIM) and Helios Investment Partners, who both hold decades-long track records of investing in infrastructure on the African continent.
“Reaching Financial Close on the first 114 MW on SunCentral is a fantastic milestone for SolarAfrica, ” says Thor Corry, Investment Director at AIIM.
“The modular approach to construct the MTS and plug in subsequent 114 MW modules provides a superb platform for SolarAfrica to scale at pace to meet the needs of the C&I customers in South Africa who want to secure price certainty and cost efficiencies while furthering South Africa’s Just Energy Transition. With South Africa requiring up to 30 GW of new capacity by 2030 to meet its climate commitments and energy needs, projects like this are crucial,” Corry concludes.
