Independent power producer SolarAfrica Energy has begun construction on its first utility-scale solar power installation, located in South Africa's Northern Cape—which will total 1 GW when complete and make it one of the largest such projects in a country racing to build out renewable energy sources.
Phase 1 of the SunCentral project will have about 342 MW in generating capacity, with Phases 2 and 3 bringing it to full capacity.
The project was originally developed and submitted by Soventix South Africa to the country's Renewable Energy Independent Power Producer Procurement Programme. The developer sold the rights to Phase 1 of the cluster development to SolarAfrica and will continue to develop Phases 2 and 3 as time progresses.
Proconics and Sinohydro will serve as EPC contractors. The former will install SunCentral’s main transmission substation while the latter will be responsible for installation of more than 500,000 solar panels.
Phase 1 of the project is expected to cost about $274 million, with the $54 million substation cost funded by SolarAfrica. It will ensure power produced onsite can be brought efficiently into the national transmission grid. “Investments of this nature go a long way in bolstering the grid’s ability to manage and distribute power across the country,” said SolarAfrica Energy CEO David McDonald at a groundbreaking ceremony June 19.
SunCentral will help lighten the generation burden of South Africa's state power utility Eskom. It is one of many public-private partnerships intended to address power generation needs of the nation, which has been on a buildout over the last decade to shift away from legacy coal-fired power generation.
SunCentral will provide power on a one-to-many basis, meaning more South African businesses can access cheaper, cleaner energy via an arrangement where public-private power producers can sell their electricity to customers over existing grids. The arrival of cheaper solar power is expected to drive economic growth in the country's commercial and industrial sectors.
“A project of this magnitude wouldn’t have been possible without the power of partnerships," said McDonald. "Over the past decade, Eskom has found new and tangible ways of making the [arrangements] a reality in South Africa. Dedication to partnering with the private sector is proof of [the] commitment to address South Africa’s power generation struggles,” he said.
As part of the greater Starsight Energy Group, SolarAfrica’s SunCentral project will also serve as a blueprint for adoption of similar projects with similar partnership arrangements in East and West Africa, with a specific focus on Kenya and Nigeria.
The clean power generated at SunCentral also will be delivered to customers at roughly half the cost of the existing cost of utility power, allowing South African businesses to offset rising power costs while supporting sustainability goals. Businesses interested in accessing this power can sign a Virtual Power Purchase Agreement with SolarAfrica. Companies such as Vantage Data Centers, ATTACQ and Enpower Trading have already signed up for Phase 1 of the project.
SolarAfrica is in the process of finalizing several other solar projects in other parts of the country, as they build towards a generation portfolio totaling more than 3 GW.
McDonald added that breaking ground on this project was not an achievement limited to SolarAfrica, but rather an achievement for all involved as it underscores the immense potential of innovative partnerships in South Africa. “SunCentral is now poised to harness this potential to its fullest extent, contributing to a sustainable energy supply for our customers, and the broader communities,” he said.
