R1.5 billion boost for Northern Cape solar development

INDEPENDENT power producer SolarAfrica has secured R1.5 billion in funding to build SunCentral 2, a 114MW solar plant in the Northern Cape. The project is part of the larger SunCentral development, located between Hanover and De Aar, which will ultimately reach 1GW – making it one of South Africa’s largest solar initiatives.

David McDonald, CEO of SolarAfrica, said, “Businesses want power they can trust – clean, affordable and predictable – and SunCentral is being built exactly for that purpose.” He added, “More than a big solar project, 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.”

The SunCentral project is being developed in phases, with SunCentral 1 (114MW) having reached financial close at the end of 2024. SunCentral 2 and 3 will add another 228MW, bringing the total to 342MW. SolarAfrica plans to allocate part of the funding to develop the project’s Main Transmission Substation.

McDonald highlighted the benefits of wheeling, saying, “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.”

SolarAfrica is backed by investors African Infrastructure Investment Managers and Helios Investment Partners, and is part of the Starsight Energy Africa Group.