SolarAfrica has secured R1.8 billion investment for the development of SunCentral, a utility-scale solar project. The funding was obtained in partnership with Investec and RMB, marking a significant step in the project’s rollout.
SunCentral, located between Hanover and De Aar in South Africa’s Northern Cape province, is designed to supply renewable energy through the national grid. The project will be implemented in three phases, with Phase 1 comprising 342 MW delivered in three stages of 114 MW each. The total capacity of SunCentral will reach 1 GW upon completion.
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Wheeling model expands energy access
Unlike traditional one-to-one wheeling projects, SunCentral will implement a one-to-many wheeling model. This structure enables multiple businesses to access renewable energy from a single generation source, increasing the availability of cleaner and more affordable electricity.
Charl Alheit, Chief Investment Officer at SolarAfrica, emphasised the significance of reaching financial close on the first 114 MW of the project. “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 noted that the scale of SunCentral will enhance access to cost-effective and renewable energy across South Africa. “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.”
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Expanding renewable energy in sub-saharan Africa
SolarAfrica operates under the Starsight Energy Africa Group, which aims to expand clean energy solutions across the continent. The success of SunCentral is expected to serve as a model for similar off-site generation projects in other African markets.
Paul van Zijl, Group CEO of Starsight Energy Africa Group, highlighted the project’s broader impact. “The construction of SolarAfrica’s SunCentral is a critical step in our journey to expand clean energy adoption across Sub-Saharan Africa. We are excited to move this project forward and continue delivering long-term value to our customers.”
Investor support for energy transition
The project has received backing from key investors, including African Infrastructure Investment Managers (AIIM) and Helios Investment Partners. These firms have a track record of supporting African energy innovation and infrastructure development.
Thor Corry, Investment Director at AIIM, stressed the importance of SunCentral in addressing South Africa’s energy needs. “Reaching Financial Close on the first 114 MW on SunCentral is a fantastic milestone for SolarAfrica.”
He also outlined the benefits of the project’s modular approach. “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 C&I 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.”
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Future outlook
SunCentral’s phased development is expected to contribute significantly to South Africa’s energy transition. By facilitating a one-to-many wheeling model, the project will broaden access to renewable energy, helping businesses manage electricity costs while reducing reliance on fossil fuels.
SolarAfrica and its partners remain focused on the long-term impact of the initiative, ensuring a steady supply of sustainable energy to meet the country’s growing demand. With strong investor backing and a clear implementation plan, SunCentral is poised to play a vital role in shaping South Africa’s renewable energy landscape.
