Commercial and industrial renewable-energy producer SolarAfrica has secured financial close on R1.5-billion to build the 114 MW utility-scale solar project SunCentral 2 in the Northern Cape, with first power expected this year.

The funding, provided by financial services firms Rand Merchant Bank and Investec Bank, is a significant step in boosting access to affordable and clean energy for South African businesses, SolarAfrica says.

SunCentral 2 will follow the 114 MW SunCentral 1, which reached financial close at the end of 2024. With the addition of the 114 MW SunCentral 3, which will bring the total size to 342 MW, these projects form Phase 1 of the broader SunCentral vision. At full scale, SunCentral is planned to reach 1 GW.

Additionally, SunCentral is a key pillar of SolarAfrica’s overall wheeling pipeline, that is expected to eventually reach 3 GW, which is currently under development across the country.

By combining utility-scale renewable generation with a more flexible delivery via wheeling, SolarAfrica is helping companies access greener energy without the upfront capital outlay traditionally associated with on-site solar systems, the company says.

“Businesses want clean, affordable and predictable power and SunCentral is being built exactly for this purpose. The confidence from our funding partners is encouraging, as we move into the next stage of delivery,” says SolarAfrica CEO David McDonald.

“SunCentral is a long-term infrastructure investment that gives companies the ability to manage their costs, cut emissions and reduce their reliance on utility power that is often vulnerable to unpredictable tariff hikes. This next step gets us closer to bringing that value to even more South African businesses,” he says.

Additionally, and similar to the first plant, SunCentral 2 includes dedicated community-upliftment initiatives, ensuring local residents share in the social and economic benefits created by the project.

Job creation, education, local procurement and skills development will continue to form a core part of the programme, supporting economic activity around the site in partnership with the project’s principal contractors, SolarAfrica says.

Further, a portion of funding for each SunCentral plant is allocated directly to the development of the project’s main transmission substation (MTS).

The MTS is engineered for up to 2 GW of green power evacuation capacity and strengthens the national grid while enabling future renewable generation to connect more efficiently.

“With wheeling, we have a model that puts control back into the hands of commercial and industrial customers. Instead of just surviving tariff hikes, it allows companies to plan for growth with a cleaner, more dependable energy mix,” says McDonald.