SolarAfrica has reached financial close on the first 114 MW phase of its SunCentral solar project in the Northern Cape – securing R1,8 billion in funding from Investec and RMB.
SunCentral, a large-scale solar photovoltaic plant between Hanover and De Aar, will be developed in three phases. Phase 1, consisting of 342 MW, will be delivered through a staged roll-out of three 114 MW facilities and will deliver renewable energy to a range of offtakers by wheeling it through the power grid. Phases 2 and 3 will increase SunCentral’s capacity to 1 GW.
“Unlike similarly sized projects that offer wheeling on a one-to-one basis, with one generation plant supplying one offtaker, SolarAfrica’s project will offer wheeling on a one-to-many basis, making it available to a wider pool of businesses in South Africa,” says SolarAfrica’s Chief Investment Officer Charl Alheit.
Investment backing for the project comes from African Infrastructure Investment Managers (AIIM) and Helios Investment Partners. The project’s modular approach – constructing the main transmission substation first and then connecting subsequent 114 MW phases – provides flexibility for scaling up as demand increases, says Thor Corry, Investment Director at AIIM. “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.”
SolarAfrica is part of the greater Starsight Energy Africa Group. “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,” says Starsight Energy Africa Group CEO Paul van Zijl.
