SolarAfrica Secures R1.5 Billion Financing For 114 MW Suncentral 2 Solar Project

SolarAfrica has reached financial close on R1.5 billion (about $94 million) to develop SunCentral 2, a 114 MW utility-scale solar power project in South Africa’s Northern Cape. The financing was secured from Rand Merchant Bank (RMB) and Investec Bank Limited, with the project expected to begin supplying clean electricity in 2026.

SunCentral 2 follows SunCentral 1, another 114 MW solar project that achieved financial close in late 2024. Along with the planned SunCentral 3, the three projects will form Phase 1 of SolarAfrica’s wider SunCentral development, providing a combined generation capacity of 342 MW.

The broader SunCentral development is planned to reach 1 GW, making it one of South Africa’s major solar initiatives focused on one-to-many bilateral wheeling. Through wheeling agreements, commercial and industrial customers can purchase renewable electricity from the solar projects without investing heavily in their own generation infrastructure.

The model is designed to help businesses access predictable and competitively priced electricity while reducing carbon emissions and exposure to rising utility tariffs. SolarAfrica said the initiative is intended to support businesses seeking greater energy independence and long-term power security.

Each SunCentral project will also contribute capital toward the construction of the development’s Main Transmission Substation. The transmission infrastructure is designed to support the evacuation of large volumes of renewable electricity and improve grid integration, enabling clean power to reach customers across the country.

SolarAfrica CEO David McDonald said the SunCentral development is intended to deliver reliable power while serving as a long-term infrastructure investment.

The company is also implementing community upliftment initiatives alongside its principal contractors. These programmes include job creation, local procurement, education and skills development, allowing communities near the projects to benefit from their construction and operation.

SunCentral 2 is part of SolarAfrica’s broader national wheeling pipeline, which currently totals 3 GW of projects under active development. The company said the expanding portfolio will support South Africa’s transition toward cleaner electricity while helping commercial and industrial customers reduce energy costs and strengthen their energy security.