Latest news with #SolarAfrica
Zawya
24-02-2025
- Business
- Zawya
SolarAfrica secures R1.8 billion solar investment, advancing Wheeling adoption in South Africa
SolarAfrica ( is proud to take another major step forward in the development of its flagship utility-scale solar project, SunCentral, by successfully reaching financial close on the first 114 MW component of the project alongside funding partners Investec and RMB. The R1.8 billion investment into SunCentral marks the start of the project's rollout in South Africa. SunCentral is a large-scale solar photovoltaic (PV) plant located between Hanover and De Aar in South Africa's Northern Cape province. The project will be developed in three phases. Phase 1, consisting of 342 MW, will be delivered through a staged roll-out of three 114 MW facilities and will deliver renewable energy to a diverse range of off-takers by wheeling it through South Africa's power grid. Phase 2 and 3 will increase SunCentral's capacity to 1 GW. Unlike similarly sized projects that offer wheeling on a one-to-one basis (with one generation plant supplying one off-taker), SolarAfrica's project will offer wheeling on a one-to-many basis, making it available to a wider pool of businesses in South Africa. SolarAfrica's Chief Investment Officer Charl Alheit, who spearheaded the financial close, explains: 'Reaching financial close on the first 114 MW of our utility-scale wheeling development and Main Transmission Substation (MTS) investment marks a significant milestone in our commitment to advancing sustainable energy solutions for our customers in the commercial and industrial sectors.' He adds that the substantial size of SunCentral will unlock access to cheaper, greener power for even more businesses across the country. 'We are excited to see this project move forward as we continue contributing to the energy transition while delivering long-term value to our customers." SolarAfrica is part of the greater Starsight Energy Africa Group. The success of SunCentral will act as a blueprint for similar (and possibly smaller) off-site generation projects in other key African markets in which the Starsight Energy Africa Group companies operate. 'The construction of SolarAfrica's SunCentral is a critical step in our journey to expand clean energy adoption across Sub-Saharan Africa, says Paul van Zijl, Group CEO of Starsight Energy Africa Group. 'We are excited to move this project forward and continue delivering long-term value to our customers,' he says. SolarAfrica is backed by world-class investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners who both hold decades-long track records of bringing investment to support African innovation. 'Reaching Financial Close on the first 114 MW on SunCentral is a fantastic milestone for SolarAfrica, says Thor Corry, Investment Director at AIIM. 'The modular approach to construct the MTS and plug in subsequent 114 MW modules provides a superb platform for SolarAfrica to scale at pace to meet the needs of the C&I customers in South Africa who want to secure price certainty and cost efficiencies while furthering South Africa's Just Energy Transition. With South Africa requiring up to 30 GW of new capacity by 2030 to meet its climate commitments and energy needs, projects like this are crucial,' Corry concludes. Distributed by APO Group on behalf of Starsight Energy. About SolarAfrica: Founded in 2011, SolarAfrica provides a suite of capex-free green energy solutions to the commercial and industrial sectors in Southern Africa. The holistic suite includes on-site solutions such as solar energy and battery storage together with virtual solutions like wheeling, trading and aggregation. SolarAfrica partners with businesses in South Africa seeking an energy solution that provides power security, cost savings and carbon reduction – building towards long-term sustainability. The company has evolved into an ambitious team who are passionate about what they do and the core values they uphold. SolarAfrica has been named the continent's leading solar energy firm twice, scooping the Africa Solar Industry Association's African Solar Company of the Year award in 2021 and 2023. About Starsight Energy: Across the continent, Starsight Energy is redefining what it means for businesses to be energy efficient. Starsight Energy provides premier clean on-grid and off-grid energy services to commercial and industrial clients in Africa. Serving the commercial and industrial, financial, residential, educational and agricultural sectors, Starsight Energy delivers tailored power and cooling solutions to meet client requirements while optimising consumption through energy-efficient appliances and environmentally friendly practices and recommendations. From load analysis and modelling to demand management and customised solution design, Starsight Energy helps clients optimize energy efficiency and cost savings across the board. About African Infrastructure Investment Managers ('AIIM'): AIIM, a member of Old Mutual Alternative Investments* ('OMAI'), has been investing in the African infrastructure sector since 1999 with a track record extending across seven African infrastructure funds. AIIM's team of 40+ investment professionals are based out of five locally staffed offices across the continent in Cape Town, Johannesburg, Nairobi, Lagos and Abidjan providing direct on-the-ground coverage of our key markets. AIIM is Africa's largest dedicated infrastructure private equity manager and currently manages an aggregate AUM of USD2.9 billion in assets across the power, renewable energy, digital infrastructure, mid-stream energy and transport sectors with operations in 19 African countries. AIIM is a licensed FSP approved by the Financial Sector Conduct Authority in South Africa. *Old Mutual Alternative Investments (OMAI) is a private alternative investment manager in Africa, with over USD7.6 billion (ZAR139.4 billion) under management in infrastructure, private equity, hybrid equity and impact funds. It is a member of Old Mutual Investment Group, the investment management arm of Old Mutual. About Helios Investment Partners: Established in 2004, Helios Investment Partners is the largest Africa-focused private investment firm, with a record that spans creating start-ups to providing expanding companies with growth capital and expertise. The firm has over $3.0 billion in assets under management and is led and managed by a predominantly African team based in London, Lagos, Nairobi and Paris, with the language skills and cultural affinity to engage with local entrepreneurs, managers, and intermediaries on the continent. Helios leverages its local and global networks to create attractive proprietary investment opportunities, with an emphasis on building market leaders in core economic sectors and driving performance through a highly engaged approach to portfolio operations. The firm's unique combination of a deep knowledge of the African operating environment, a singular commitment to the region and a proven capability to manage complexity, is reflected in its diverse portfolio of growing, market-leading businesses, and its position as a partner of choice in Africa. Helios is the second mainstream private equity firm globally, and the largest emerging markets focused private equity firm, to achieve B Corp certification. B Corp status recognizes the firm's longstanding commitment to sustainability and responsible business practices.
Trade Arabia
24-02-2025
- Business
- Trade Arabia
SolarAfrica secures 98m to boost wheeling in South Africa
SolarAfrica has secured a R1.8 billion ($98 million) investment in its SunCentral utility-scale solar project, which will be developed in three phases. The first phase, consisting of 342 MW, will be delivered through three 114 MW facilities, delivering renewable energy to various off-takers through South Africa's power grid. Phases 2 and 3 will increase SunCentral's capacity to 1 GW. SolarAfrica's project will offer wheeling on a one-to-many basis, making it accessible to a wider range of businesses in South Africa, unlike similar projects that offer one-to-one wheeling. The project is located between Hanover and De Aar in South Africa's Northern Cape province. SolarAfrica's Chief Investment Officer Charl Alheit, who spearheaded the financial close, explains: 'Reaching financial close on the first 114 MW of our utility-scale wheeling development and Main Transmission Substation (MTS) investment marks a significant milestone in our commitment to advancing sustainable energy solutions for our customers in the commercial and industrial sectors.' He adds that the substantial size of SunCentral will unlock access to cheaper, greener power for even more businesses across the country. 'We are excited to see this project move forward as we continue contributing to the energy transition while delivering long-term value to our customers." SolarAfrica is part of the greater Starsight Energy Africa Group. The success of SunCentral will act as a blueprint for similar (and possibly smaller) off-site generation projects in other key African markets in which the Starsight Energy Africa Group companies operate. 'The construction of SolarAfrica's SunCentral is a critical step in our journey to expand clean energy adoption across Sub-Saharan Africa, says Paul van Zijl, Group CEO of Starsight Energy Africa Group. 'We are excited to move this project forward and continue delivering long-term value to our customers,' he says. SolarAfrica is backed by world-class investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners who both hold decades-long track records of bringing investment to support African innovation. 'Reaching Financial Close on the first 114 MW on SunCentral is a fantastic milestone for SolarAfrica, says Thor Corry, Investment Director at AIIM. 'The modular approach to construct the MTS and plug in subsequent 114 MW modules provides a superb platform for SolarAfrica to scale at pace to meet the needs of the C&I customers in South Africa who want to secure price certainty and cost efficiencies while furthering South Africa's Just Energy Transition. With South Africa requiring up to 30 GW of new capacity by 2030 to meet its climate commitments and energy needs, projects like this are crucial,' Corry concludes.
Zawya
20-02-2025
- Business
- Zawya
South Africa's energy trends for 2025 – the light at the end of the tunnel grows brighter
Power – or the lack thereof – has been a hot-button issue in South Africa for the past few years. Every South African knows the story: ageing infrastructure meant that the grid took strain, loadshedding kicked in, business operations ground to a halt, and profitability took a nosedive…all seemingly faster than the speed of light. Cut to 2025 and loadshedding – fingers crossed – is just about a thing of the past, largely thanks to the increasing adoption of renewable energy, resulting in less pressure on the grid. Reliable electricity remains a hot topic, says David McDonald, CEO of SolarAfrica, adding that there are still the usual issues like escalating prices that persist. 'The difference now, however, is that there's a greater sense of cautious optimism surrounding the future, driven by the rapid expansion of the renewable energy sector.' McDonald shares four renewable energy trends that we can expect to see in 2025. Flexibility switches on Pantry looking a little bare? A few taps on your phone and a load of groceries will be delivered to your door within the hour. Need something good to watch? Surf Netflix or Showmax to your heart's content. Looking for a weekend playlist? Type 'Sunday vibes' into Spotify and you'll be served countless options. 'Just like every other facet of modern life, electricity too has entered its on-demand era, says McDonald. 'We're seeing a growing appetite for energy trading, where National Energy Regulator of South Africa (NERSA)-licensed traders buy renewable energy from different providers to sell to off-takers. Businesses are also looking for higher levels of renewables and layered solutions that they can toggle between as needed. Having greater access to sources such as wind and solar (through wheeling) paired with on-site solar and battery storage, facilitates increased cost savings, greater choice and more power security.' Alongside this is a growing desire for more flexibility in agreements with IPPs. Until recent years, being locked into a 20-year power purchase agreement was the norm but many businesses are starting to shy away from long-term commitments, especially given South Africa's generally turbulent economic environment. McDonald says that while long-term contracts remain the most cost-effective option as they enable IPPs to pass on greater savings to customers, 'this year we're seeing a growing demand for shorter-term, more flexible contracts, as the sector moves towards a merchant market. Businesses need to know that there's more than one way to engage an IPP, and various contract options exist depending on your risk appetite.' Rising tariffs a turn-off Rising electricity tariffs remain a key driver in the mass shift towards renewables. In South Africa, tariffs have surged by over 450% since the onset of the power crisis, and this upward trend shows no signs of slowing. NERSA's recently released Eskom's revenue request for the next three financial years, highlighting the utility's need for substantial funding – R446 billion for FY2026, R495 billion for FY2027, and R537 billion for FY2028. If approved, this would result in significant tariff hikes of 36.15% in 2025/26, followed by increases of 11.81% in 2026/27 and 9.10% in 2027/28. 'Even if Eskom gets a third of what they're asking for, South Africans will still face massive increases in their monthly utility bills,' warns McDonald. These rising tariffs will remain a trend for some time, says McDonald, and are set to place even greater financial strain on industries – specifically the mining, manufacturing, production and automotive sectors, which are massive energy consumers. 'This will further incentivise the move to a more diversified energy mix.' Companies are realising that multiple energy options exist, he highlights, with even more solutions expected in future. 'The challenge for companies will shift to discerning between the various solutions and deciding which makes the most sense to their business. This is where working with a trusted and experienced IPP is key, as they will be able to guide you on an energy strategy tailored to your specific needs,' he adds. Green grows bigger and brighter than before Businesses in South Africa are facing mounting pressure to transition to greener energy solutions, driven by global trends and regulatory frameworks like the European Union's Carbon Border Adjustment Mechanism (CBAM). CBAM imposes carbon tariffs on imported goods based on their carbon footprint, putting South African exporters – particularly in industries like fruit exports, automotive and manufacturing – at risk of losing competitiveness if they don't decarbonise. 'Domestically, South Africa's Carbon Tax Act has amplified the urgency for companies to shift their energy mix towards renewables. This dual pressure – alongside the expected tariff increases – is reshaping corporate energy strategies, pushing businesses to adopt renewables, invest in energy efficiency and align with net-zero goals to remain compliant and competitive. 'Putting a solid sustainability framework in place isn't a simple tick-box reporting exercise. It actually offers tangible financial, environmental and business benefits to organisations that want to differentiate themselves in the eyes of their communities and those of potential investors and employees. It just makes good business sense,' says McDonald. Wheeling moves into the spotlight Electricity wheeling sees IPPs generate power that can be purchased from them directly. With no need for on-site installation, customers benefit immediately from affordable, green energy. At SolarAfrica, for example, power gets generated at utility-scale solar farms and can be purchased by businesses at a far lower tariff than through Eskom. 'Electricity wheeling has slowly been gaining traction. This changes in 2025 as South Africa's electricity tariff crisis, regulatory shifts and ongoing power generation concerns are quickly pushing businesses to find cheaper, greener and more reliable electricity alternatives, explains McDonald. 'Several municipalities, including the City of Cape Town, are actively supporting wheeling frameworks to attract investment in distributed energy solutions. These frameworks allow private power to flow through municipal grids, increasing access to alternative energy sources.' He urges commercial businesses to remain ahead of the wheeling curve. 'Chat to your IPPs and determine what solutions are available to you, so that – like we saw with the widespread roll-out of fibre – the necessary frameworks are in place and ready to go when it's time to switch on. He concludes: 'Thanks to the rise of renewables, the energy landscape is seeing an exciting renaissance. Now is the time for companies to explore their options and secure a more sustainable, cost-effective energy future. Whether through wheeling, on-site solar or hybrid solutions, companies now have access to IPPs and energy traders that can not only diversify their renewables mix but also future-proof their business in the changing energy landscape. 'Partnering with the right IPP or energy trader can help you take control of your energy security while benefitting in full from the revitalised power landscape.'
