Investec & SolarAfrica reach financial close on R1.8 billion for flagship solar

Johannesburg, 18 December 2024 – Investec is proud to announce the successful financial close of SolarAfrica’s SunCentral 1, representing the first 114 MW of the company’s utility-scale solar farm. This is a significant step forward in the development of renewable energy in South Africa. Investec was co-mandated lead arranger for the debt and hedging (interest rate and forex) requirements of the project.

SunCentral is a solar photovoltaic (PV) plant located in the Northern Cape, being developed by SolarAfrica Energy. With Phase 1 consisting of 342 MW, the project aims to sell renewable energy to a diverse portfolio of corporate buyers in collaboration with Enpower, a NERSA-approved Energy Trader. The total deal for SunCentral 1 is valued at R1.8 billion, with Investec participating as a 50% funding partner.

Charl Alheit, Chief Investment Officer of SolarAfrica Energy, commented, "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 with Phases 2 and 3 in the pipeline bringing the project total to 1 GW, SunCentral will unlock access to cheaper, greener power for even more businesses across South Africa through wheeling. “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."

Martin Meyer, Head of Energy and Infrastructure Finance at Investec, says SunCentral 1 fits Investec’s strategy of supporting sustainable energy initiatives and its commitment to facilitating the transition towards a greener economy.

“We have a longstanding relationship with SolarAfrica Energy, who share our vision of a sustainable energy future for our continent,” he says.

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.