SolarAfrica has achieved a significant milestone in its renewable energy initiatives by securing R1.8 billion in funding for its flagship SunCentral solar project. This investment, facilitated by financial partners Investec and RMB, marks the successful financial close on the first 114 MW phase of the development, setting the stage for broader energy distribution across South Africa.
SunCentral, a large-scale solar photovoltaic (PV) plant situated between Hanover and De Aar in the Northern Cape province, is set to be developed in three phases. Phase 1 will generate 342 MW through a staggered rollout of three 114 MW facilities, providing renewable energy to multiple off-takers via South Africa’s power grid. Subsequent phases will expand the project’s capacity to an impressive 1 GW.
Unlike traditional large-scale projects that offer one-to-one wheeling (where one generation plant supplies a single off-taker), SolarAfrica’s model enables one-to-many wheeling. This approach broadens accessibility to renewable energy for businesses across the country.
Charl Alheit, Chief Investment Officer of SolarAfrica, emphasized the significance of this achievement: “Reaching financial close on the first 114 MW of our utility-scale wheeling development and Main Transmission Substation (MTS) investment marks a major milestone in advancing sustainable energy solutions for commercial and industrial sectors.”
The scale of SunCentral will help businesses access cost-effective, eco-friendly power, supporting South Africa’s Just Energy Transition. Paul van Zijl, Group CEO of Starsight Energy Africa Group, added: “The construction of SunCentral is a crucial step toward expanding clean energy adoption across Sub-Saharan Africa. We are eager to see the project progress and deliver long-term value to our customers.”
Backed by prominent investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners, SolarAfrica is poised to set a precedent for similar projects across Africa. AIIM’s Investment Director, Thor Corry, commented: “The modular construction of SunCentral’s MTS and its scalable 114 MW model offer a robust platform to meet the energy needs of South African businesses while supporting the country’s climate commitments.”
With South Africa requiring up to 30 GW of additional capacity by 2030, projects like SunCentral are essential to meeting national energy goals.
