SolarAfrica Closes Funding for First 114 MW of SunCentral Solar Project

SolarAfrica announced that it has successfully reached financial close on the first 114 MW component of its flagship utility-scale solar project, SunCentral, with the support of funding partners Investec and RMB. The R1.8 billion investment marks the start of SunCentral’s implementation in South Africa.

SunCentral Project Overview

SolarAfrica will develop SunCentral, located between Hanover and De Aar in South Africa's Northern Cape, as a 3-phase PV plant. The first phase of the project involves 342 MW, delivered through three 114 MW facilities. South Africa’s power grid will carry this renewable energy to a wide range of off-takers.

The second and third phases of SunCentral will boost the plant’s capacity to 1 GW, advancing South Africa’s renewable goals.

Innovative Wheeling Approach

What sets SunCentral apart from similar-sized solar projects is its unique wheeling model. Unlike typical projects, SunCentral will provide wheeling on a one-to-many basis, making renewable energy accessible to more South African businesses. This innovative approach will also unlock new opportunities for companies to access renewable energy.

A Significant Milestone for SolarAfrica

Charl Alheit, Chief Investment Officer at SolarAfrica, said, “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.”

He further highlighted that the scale of SunCentral will provide affordable, greener energy to more businesses across the country, advancing the country’s energy transition while delivering long-term value to customers.

SunCentral as a Blueprint for Africa’s Energy Future

The success of the SunCentral project will not only benefit South Africa but also serve as a model for similar off-site generation projects in other African markets. SolarAfrica is part of the Starsight Energy Africa Group, and Paul van Zijl, Group CEO of Starsight Energy, emphasized the project’s significance in expanding clean energy adoption across Sub-Saharan Africa.

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Additionally, SolarAfrica's development of SunCentral is backed by top-shelf investors such as African Infrastructure Investment Managers (AIIM) and Helios Investment Partners, both of whom have extensive experience of supporting African innovation.