SolarAfrica Secures R1.5 Billion Funding for 114 MW SunCentral 2 Solar Plant in South Africa

SolarAfrica has achieved financial close on R1.5 billion in funding to develop SunCentral 2, a 114 MW utility-scale solar power plant in South Africa’s Northern Cape, marking a major milestone in the expansion of clean and affordable energy access for commercial and industrial consumers. The financing has been provided by Rand Merchant Bank (RMB) and Investec Bank Limited, with first power expected in 2026.

SunCentral 2 follows SunCentral 1, which reached financial close at the end of 2024 and also has a capacity of 114 MW. Alongside the upcoming SunCentral 3, these projects collectively form Phase 1 of SolarAfrica’s flagship SunCentral development, representing a combined capacity of 342 MW. At full scale, the SunCentral project is planned to reach 1 GW, positioning it among South Africa’s largest solar initiatives designed specifically for one-to-many, bilateral wheeling.

Commenting on the development, David McDonald, CEO of SolarAfrica, said businesses increasingly demand reliable, clean, and cost-effective energy solutions. He noted that SunCentral is being developed to deliver predictable power supply, enabling companies to better manage energy costs, reduce emissions, and limit their exposure to volatile utility tariffs. He added that the successful financial close reflects strong confidence from funding partners and accelerates project delivery.

Beyond energy generation, SunCentral 2 incorporates comprehensive community upliftment programmes, focusing on job creation, education, skills development, and local procurement. These initiatives aim to ensure that surrounding communities benefit directly from the project’s socio-economic impact, in collaboration with principal contractors.

SunCentral is also a central component of SolarAfrica’s national wheeling pipeline, totalling 3 GW, currently under development. By leveraging wheeling, the company enables businesses to procure renewable energy without the upfront capital investment typically required for on-site solar installations, thereby improving accessibility and flexibility in corporate energy procurement.

Additionally, a portion of funding from each SunCentral phase is allocated to the construction of the project’s Main Transmission Substation (MTS). Designed to support up to 2 GW of renewable power evacuation capacity, the MTS will strengthen South Africa’s transmission infrastructure and facilitate the integration of future renewable energy projects into the national grid.

McDonald added that wheeling empowers commercial and industrial customers by giving them greater control over their energy sourcing strategies, enabling long-term planning and supporting sustainable business growth through a more dependable and cleaner energy mix.