SolarAfrica, a commercial and industrial-focused renewable energy provider, has secured R1.8 billion (approximately $98 million USD) in funding for the first phase of its SunCentral utility-scale solar project in South Africa’s Northern Cape province. The investment, backed by local financial institutions Investec and RMB, marks a significant step for private sector renewable energy generation in the country and underscores the growing momentum for “wheeling” frameworks to bypass constraints within the state-owned power utility Eskom’s grid.

The funding will kickstart the construction of the first 114 megawatt (MW) component of SunCentral, a planned photovoltaic (PV) plant located between Hanover and De Aar. SolarAfrica envisions SunCentral as a 1 gigawatt (GW) project developed across three phases. Phase one alone will total 342 MW, delivered through a staged rollout of three identical 114 MW facilities.

Unlike many renewable energy projects that operate on a bilateral wheeling basis — linking a single generator to a single consumer — SunCentral is designed to offer “one-to-many” wheeling. This model aims to broaden access to renewable energy for a wider pool of commercial and industrial (C&I) clients across South Africa, allowing multiple businesses to tap into the generated power transmitted through the national grid.

Charl Alheit, Chief Investment Officer at SolarAfrica, highlighted the financial close as a “significant milestone” in the company’s commitment to sustainable energy solutions for the C&I sector. He emphasized that the scale of SunCentral is intended to “unlock access to cheaper, greener power for even more businesses across the country,” contributing to both cost efficiencies for companies and South Africa’s broader energy transition.

South Africa is grappling with a persistent energy crisis, characterized by frequent load shedding and an ageing coal-powered fleet managed by Eskom. Wheeling, which allows private generators to transmit electricity across the national grid for a fee, is increasingly seen as a critical mechanism to diversify the energy mix and alleviate pressure on Eskom. Recent regulatory changes in South Africa have eased restrictions on private power generation, paving the way for larger-scale projects like SunCentral to come online.

Paul van Zijl, Group CEO of Starsight Energy Africa Group, SolarAfrica’s parent company, stated that SunCentral serves as a “blueprint” for similar projects across Sub-Saharan Africa, where the group operates. The success of this project could encourage further private investment in renewable energy infrastructure throughout the region.

Investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners, who back SolarAfrica, also lauded the financial close. Thor Corry, Investment Director at AIIM, noted the “modular approach” of SunCentral’s construction as a key advantage, allowing for scalable expansion to meet the demands of C&I clients seeking price certainty and alignment with South Africa’s “Just Energy Transition” goals.

Corry further underscored the urgency of new generation capacity, citing South Africa’s need for up to 30 GW of additional power by 2030 to meet both climate commitments and growing energy demands. Projects like SunCentral, he argued, are “crucial” to achieving these targets.

While the R1.8 billion investment represents a positive step for South Africa’s renewable energy landscape, challenges remain. The operational efficiency of wheeling frameworks still depends on the reliability and capacity of Eskom’s transmission infrastructure. Furthermore, the long-term impact of “one-to-many” wheeling models on grid stability and pricing mechanisms will require close monitoring as more projects come online.

Nevertheless, the financial backing secured by SolarAfrica for SunCentral signals growing investor confidence in South Africa’s renewable energy sector and the potential of private initiatives to contribute meaningfully to the country’s energy security and decarbonisation ambitions. The project’s progress will be closely watched as a bellwether for the wider adoption of wheeling and the role of independent power producers in reshaping South Africa’s energy future.