SolarAfrica reached final close of $98 Million for SunCentral Solar Project with RMB Investment

SolarAfrica has reached financial close for the first 114 MW phase of its flagship SunCentral solar project, marking a $98 million (ZAR 1.8 billion) investment in South Africa’s renewable energy landscape. This milestone, backed by Rand Merchant Bank (RMB) alongside Investec, sets the stage for one of the largest utility-scale solar projects in the country.

Located between Hanover and De Aar in South Africa’s Northern Cape, SunCentral is being developed in three phases, with a total capacity of 1 GW upon completion. The first phase, 342 MW, will be delivered through a staggered rollout of three 114 MW units, supplying power to multiple businesses via a wheeling arrangement across South Africa’s power grid.

Unlike traditional one-to-one wheeling projects, where a single power plant supplies one off-taker, SunCentral’s one-to-many wheeling model allows a diverse pool of commercial and industrial consumers to access clean, cost-effective energy. This structure aims to improve energy affordability and sustainability for businesses across the country.

Charl Alheit, Chief Investment Officer of SolarAfrica, underscored the project’s significance:

"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 also highlighted that the scale of SunCentral will provide businesses with reliable access to cheaper, greener power, helping them reduce their operational costs and carbon footprints.

"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."

The success of SunCentral is expected to serve as a blueprint for future off-site generation projects in other African markets where SolarAfrica operates, through its parent company Starsight Energy Africa Group.

Paul van Zijl, CEO of Starsight Energy Africa Group, stated:

"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."

The project is supported by Rand Merchant Bank (RMB), African Infrastructure Investment Managers (AIIM), and Helios Investment Partners, demonstrating strong financial backing from institutional investors with a track record in large-scale energy projects.

Thor Corry, Investment Director at AIIM, emphasized the importance of the modular approach used in SunCentral:

"Reaching financial close on the first 114 MW of SunCentral is a fantastic milestone for SolarAfrica."

He noted that scalable 114 MW units allow for faster expansion while ensuring price stability and cost efficiency. With South Africa targeting 30 GW of additional renewable capacity by 2030, SunCentral is expected to play a vital role in meeting the country’s clean energy transition goals.

By securing financial close with strong backing from RMB, SolarAfrica is positioned to accelerate the deployment of large-scale, wheeled renewable energy solutions, providing sustainable power to businesses and industries across South Africa.