SOLA Group Secures Financing For 132MWp Solar Project In South Africa With African Rainbow Energy

SOLA Group, a local independent power producer (IPP) in which African Rainbow Energy (ARE) holds a 40% stake, has finalized financing agreements with banks for the construction of a 132MWp solar project situated in North West Province.

This project marks the third significant renewable energy venture completed by SOLA in just six months, bringing its total construction capacity to 390MW, encompassing 588,000 solar panels over an expanse of 750 hectares.

The primary objective of this project is to supply energy to platinum mining operations owned by African Rainbow Minerals (ARM) via a long-term power purchase agreement, with power delivery facilitated through the national grid. Eskom, a key partner, will manage the measurement and reconciliation of energy from regulators to consumer accounts.

SOLA will be responsible for the construction and operation of the facility in collaboration with construction firm WBHO.

The SOLA Group has announced plans to generate 270 GWh of clean electricity annually while contributing to the national grid. In perspective, 390MW of capacity would generate roughly 1TWh (terawatt-hour) of energy annually, equivalent to addressing 11% of South Africa’s electricity supply shortfall, as indicated by the Council for Scientific and Industrial Research (CSIR). Eskom load-shed approximately 8.3TWh of electricity in the previous year.

The project is jointly owned by SOLA and ARM, with senior lending provided by Absa, Standard Bank, the Development Bank of Southern Africa, and Nedbank. Over the past six months, this initiative has created around 1,200 job opportunities.

With this recent project and two others under development in North West Province, the region has received investments worth R6.4 billion. Additionally, ARE has now invested in one gigawatt of renewable energy projects.

Chris Haw, Executive Director and Co-Founder of SOLA highlighted that apart from delivering more cost-effective and cleaner energy to the network, this project will boost economic development in an area where employment opportunities have been limited. He emphasized that local employees will gain training and valuable skills that will be in high demand, given South Africa’s estimated need for 6,000MW of new clean power generation annually for the next decade.

Brian Dames, CEO of ARE, stated that this project demonstrates their dedication to building a modern privately-owned utility capable of providing clean energy solutions to large customers. This supports the ongoing transition in the energy sector. Notably, the main shareholder of African Rainbow Energy, Ubuntu-Botho Energy Holdings, was founded by Dr. Patrice Motsepe.