Johannesburg— Investec and SolarAfrica Energy have finalized a R1.8 billion financial agreement for SunCentral 1, marking the launch of a 114 MW utility-scale solar farm in South Africa’s Northern Cape. Announced on 18 December 2024, the deal positions Investec as a co-mandated lead arranger for debt and hedging requirements, covering interest rate and foreign exchange components. This initial phase is part of a broader 342 MW project, with ambitions to scale up to 1 GW, reinforcing South Africa’s push toward renewable energy.
The SunCentral photovoltaic plant, developed by SolarAfrica Energy, aims to supply clean power to a range of corporate buyers through a partnership with Enpower, a trader approved by the National Energy Regulator of South Africa (NERSA). Investec’s 50% stake in the funding underscores its role in driving sustainable infrastructure. The project’s “wheeling” model—where electricity is transported via existing grids to end users—promises to deliver affordable, green energy to South Africa’s commercial and industrial sectors.
Charl Alheit, Chief Investment Officer of SolarAfrica Energy, hailed the milestone as a leap forward in the company’s mission. “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 said. Looking ahead, Alheit noted that Phases 2 and 3, already in planning, will expand SunCentral to 1 GW. “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,” he added.
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For Investec, the deal aligns with its focus on fostering a low-carbon economy. Martin Meyer, Head of Energy and Infrastructure Finance at Investec, emphasized the strategic fit. “We have a longstanding relationship with SolarAfrica Energy, who share our vision of a sustainable energy future for our continent,” he said. Meyer highlighted the bank’s broader commitment to financing projects that accelerate the shift away from fossil fuels, a pressing need in a country where coal still dominates the energy mix.
South Africa’s renewable energy sector has gained momentum as businesses seek alternatives to an unreliable national grid and rising electricity costs. SunCentral’s phased rollout could ease pressure on Eskom, the state-owned utility, while supporting corporate decarbonization goals. The Northern Cape, with its abundant sunlight, is fast becoming a hub for solar investments, bolstered by projects like SunCentral.
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With the first 114 MW now secured, SolarAfrica and Investec are laying the groundwork for a scalable model that could reshape how South African firms power their operations. The R1.8 billion investment reflects growing confidence in renewables as a viable economic and environmental solution, even as the country grapples with energy security challenges.
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As Phases 2 and 3 progress, SunCentral’s full 1 GW capacity could power thousands of businesses, amplifying its impact on South Africa’s energy landscape.
