SolarAfrica secures funding for SunCentral 2 solar project

SolarAfrica has reached financial close on US$81mn to develop SunCentral 2, the next 114 MW phase of its flagship utility-scale solar programme in the Northern Cape

The funding, provided by RMB and Investec Bank Limited, represents a major step in expanding access to affordable, clean energy for South African businesses, with first power expected in 2026.

SunCentral 2 follows SunCentral 1, which also achieved financial close at 114 MW at the end of 2024. Together with SunCentral 3, these projects make up Phase 1 of the broader SunCentral vision, totalling 342 MW. At full build-out, SunCentral is planned to reach 1 GW, establishing it as one of South Africa’s largest solar initiatives designed specifically for one-to-many, bilateral wheeling.

“Businesses want power they can trust – clean, affordable and predictable – and SunCentral is being built exactly for that purpose. It’s encouraging to see the confidence from our funding partners as we move into the next stage of delivery,” said David McDonald, CEO of SolarAfrica.

He added: “More than a big solar project, SunCentral is a long-term infrastructure investment that gives companies the ability to manage their costs, cut emissions, and reduce their reliance on utility power that is often vulnerable to unpredictable tariff hikes. This next step gets us closer to bringing that value to even more South African businesses.”

Like the first plant, SunCentral 2 incorporates community development initiatives to ensure local residents benefit socially and economically. Job creation, education, local procurement, and skills development remain central to the programme, supporting economic activity in the surrounding areas in collaboration with the project’s main contractors.

SunCentral also forms a key part of SolarAfrica’s broader 3 GW wheeling pipeline under development across South Africa. By pairing utility-scale renewable generation with flexible delivery through wheeling, the company is enabling businesses to access green energy without the upfront capital typically required for on-site solar installations.

A portion of funding from each SunCentral project is allocated to the development of the Main Transmission Substation (MTS). Designed for up to 2 GW of green-power evacuation, the MTS will strengthen the national grid and facilitate the connection of future renewable projects more efficiently.

“With wheeling, we have a model that puts control back into the hands of commercial and industrial customers. Instead of just surviving tariff hikes, it allows companies to plan for growth with a cleaner, more dependable energy mix,” said McDonald.