Mainstream Secures Financial Close For 27 MW Ilikwa Phase 2 Solar Project In South Africa

Mainstream Renewable Power has reached financial close on Ilikwa Phase 2, a 27 MW solar photovoltaic (PV) project in South Africa’s Free State province. Located near Parys, the project will expand the existing Ilikwa Solar facility’s total installed capacity to 77 MW, building on the 50 MW capacity developed under Phase 1.

The financial close marks another milestone in Mainstream’s efforts to expand its renewable energy portfolio and strengthen its private power supply business in South Africa. Ilikwa Phase 1 achieved Commercial Operation Date (COD) in July 2026, approximately four months before the financial close of the second phase.

Similar to Phase 1, the additional 27 MW capacity will supply electricity to multiple private commercial and industrial (C&I) customers through Power Purchase Agreements (PPAs) ranging from five to ten years. The shorter-term agreements are designed to provide businesses with access to affordable, reliable and renewable electricity without requiring them to enter into conventional long-term power purchase commitments.

Mainstream provides these flexible electricity supply arrangements through its own electricity trading business, which is licensed by the National Energy Regulator of South Africa (NERSA). The company believes shorter-term PPAs can make South Africa’s private electricity market accessible to a wider range of businesses while supporting the growing demand for renewable energy.

The company is also considering the development of a utility-scale Battery Energy Storage System (BESS) for the Ilikwa project in 2027. The proposed storage facility could further strengthen the project’s electricity supply offering and provide additional flexibility to customers.

Investec Bank Limited is the financing partner for Ilikwa Phase 2 and will hold a 30% equity interest in the project, while Mainstream will retain the remaining 70% stake. The same ownership structure was followed for Phase 1. Martin Meyer, Head of Energy and Infrastructure Finance at Investec, said the bank’s customised financing solution for both phases had helped establish a strong partnership with Mainstream. He also expressed confidence in continued collaboration across the Ilikwa portfolio.

Construction of Phase 2 is expected to generate further employment and local economic opportunities for communities surrounding the project. During Phase 1 construction, the project created more than 2,600 employment opportunities at peak activity, with most workers recruited from neighbouring communities, including Tumahole, Schonkenville and Vredefort. The development also supported local procurement and enterprise development.

Mainstream South Africa General Manager Hein Reyneke said reaching financial close for the additional 27 MW demonstrated the growing demand for flexible renewable energy solutions among private customers. He added that the company aims to continue supplying clean and competitively priced electricity to South African businesses.

Commercial operation of Ilikwa Phase 2 is expected in the fourth quarter of 2027. Once fully operational, the expanded 77 MW solar facility is expected to generate approximately 75 million kWh of electricity annually, equivalent to the power requirements of around 20,000 homes. The project is also expected to avoid approximately 72,000 tonnes of carbon dioxide emissions every year.