SolarAfrica has announced it has reached financial close on the first 114MW component of its flagship utility-scale solar project, SunCentral.,in a stride towards sustainable energy in South Africa.
This major achievement, made possible through partnerships with Investec and RMB, involves a hefty investment of R1.8 billion and heralds the commencement of the project’s rollout in the sun-drenched Northern Cape province.
Located strategically between Hanover and De Aar, SunCentral is poised for extensive development, anticipated to unfold in three phases.
The first phase, comprising three 114MW facilities aggregating to a total of 342MW, aims to deliver renewable energy by wheeling it through South Africa’s power grid to a diverse array of off-takers. As the project evolves into its subsequent phases, the total capacity is projected to reach an impressive 1GW.
A unique aspect of the SunCentral project is its innovative wheeling model, which sets it apart from other projects of similar scale.
Rather than adhering to a one-to-one wheeling system, whereby a single generation plant supplies energy to only one off-taker, SolarAfrica will facilitate a one-to-many approach.
This flexible arrangement opens up opportunities for a broader spectrum of South African businesses to benefit from renewable energy solutions.
Charl Alheit, chief investment officer at SolarAfrica, said the considerable scale of SunCentral will pave the way for more businesses to access cost-effective and cleaner energy.
“Reaching financial close on the first 114MW 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,” Alheit said.
“We are excited to see this project move forward as we continue contributing to the energy transition while delivering long-term value to our customers."
As part of the larger Starsight Energy Africa Group, SolarAfrica aims to utilise the success of SunCentral as a blueprint for analogous off-site generation projects in other key African markets.
Starsight Energy provides premier clean on-grid and off-grid energy services to commercial and industrial clients in Africa.
“The construction of SolarAfrica’s SunCentral is a critical step in our journey to expand clean energy adoption across Sub-Saharan Africa,” said 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.”
SolarAfrica is backed by world-class investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners who both hold decades-long track records of bringing investment to support African innovation.
SolarAfrica provides a suite of capex-free green energy solutions to the commercial and industrial sectors in Southern Africa. It partners with businesses in South Africa seeking an energy solution that provides power security, cost savings and carbon reduction – building towards long-term sustainability.
Backing the project is a consortium of reputable investors, including African Infrastructure Investment Managers (AIIM) and Helios Investment Partners, both of whom bring substantial expertise in supporting African innovation.
Thor Corry, investment director at AIIM, said reaching financial close on the first 114MW on SunCentral was a “fantastic milestone” for SolarAfrica.
“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,” Corry said.
“With South Africa requiring up to 30GW of new capacity by 2030 to meet its climate commitments and energy needs, projects like this are crucial.”
BUSINESS REPORT