Independent power producer SolarAfrica has reached financial close on the first 114 MW component of its flagship utility-scale solar project, SunCentral, alongside funding partners Investec and RMB.

The R1.8-billion investment into SunCentral marks the start of the project’s rollout.

SunCentral is a large-scale solar PV plant located between Hanover and De Aar in the Northern Cape. The project will be developed in three phases.

The 342 MW first phase will be delivered through a staged roll-out of three 114 MW facilities and will deliver renewable energy to various offtakers by wheeling it through South Africa’s 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 says this project will offer wheeling on a one-to-many basis, making it available to a wider pool of businesses in South Africa.

“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,” says SolarAfrica CIO Charl Alheit.

He adds that the substantial size of SunCentral will unlock access to cheaper, greener power for even more businesses across the country.

“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."

SolarAfrica is part of the greater Starsight Energy Africa Group.

The company says 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.

“The construction of SolarAfrica’s SunCentral is a critical step in our journey to expand clean energy adoption across sub-Saharan Africa,” says Starsight Energy Africa Group CEO Paul van Zijl.

“We are excited to move this project forward and continue delivering long-term value to our customers,” he continues.

SolarAfrica is backed by investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners who both hold decades-long records of bringing investment to support African innovation.

“Reaching financial close on the first 114 MW on SunCentral is a fantastic milestone for SolarAfrica, says AIIM investment director Thor Corry.

“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 commercial and industrial customers in South Africa who want to secure price certainty and cost efficiencies while furthering South Africa’s Just Energy Transition.

“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,” Corry concludes.