The giant 420 MW Northern Cluster, comprising three large wind farms under construction in the Karoo, is still anticipated to enter into commercial operation before the end of 2026, despite unprecedented recent rainfall in the region that affected site activity.

The three 140-MW-apiece projects, known as Khangela, Umsinde and Ishwati Emoyeni, are being built by South African independent power producer Anthem and co-shareholder Reatile Renewables.

Located across several farms near the Karoo towns of Murraysburg and Richmond on the border between the Western and Northern Cape provinces, the wind farms involve a combined investment of almost R15-billion. This includes a shared main transmission substation (MTS) and some 70 km of self-build 132 kV powerlines to facilitate wheeling through the national grid.

The project has created over 1 400 jobs in construction and will create over 50 jobs in operations. It will invest many millions into local area development projects over the next 20 years.

All three projects are anchored by commercial and industrial (C&I) power purchase agreements (PPAs) of between 20 and 25 years that were concluded with private offtakers in 2024.

The electricity to be produced from Khangela is contracted to Richards Bay Minerals, of KwaZulu-Natal, while precious metals miner Sibanye-Stillwater has signed a PPA for the electricity arising from Umsinde. Electricity producer and trader NOA has contracted to purchase the electricity arising from the Ishwati wind farm.

Anthem CEO James Cumming tells Engineering News that he is optimistic that commercial operation dates in the fourth quarter of 2026 remain within reach, despite a force majeure declaration by the contractors following heavy rains between February and June this year.

The Khangela and Umsinde facilities are expected to begin producing first, having advanced to financial close in May of 2024, whereas Ishwati achieved the milestone in September of the same year.

96 TURBINES, OVER 1 000 TRUCK MOVEMENTS

Original-equipment manufacturer Vestas is supplying 96 V163 turbines, rated at 4.5 MW each, across all three projects, while South African construction group Raubex has been contracted for the civil and electrical works associated with the balance of plant.

All turbine towers were procured locally from GRI's manufacturing facility in Atlantis, Western Cape.

The logistics for the project were significant, with well over 1 000 truck movements involved in getting the massive turbine equipment to site after their delivery to the Port of Ngqura, in the Eastern Cape. An exercise that led to some frustrating road congestion at times.

The shared Gamma B MTS has been built by a joint venture comprising South African companies Adenco Construction and CSV Construction to specifications set by the National Transmission Company South Africa (NTCSA), which has already taken over the facility.

The substation includes 400 kV and 132 kV infrastructure, a 500 MVA transformer, and provision for future feeders and transformers, and Cumming says it has been a distinguishing feature of the Northern Cluster, as it was the first MTS project undertaken by Anthem.

This inaugural MTS project is viewed as an important learning for Anthem, which is now building another MTS in the Free State for its 475 MW Notsi PV project, and expects to begin construction on another later this year or in early 2027.

Gamma B was energised in early 2026, which represented a key milestone in eventually connecting the wind projects to the NTCSA network.

The fact that the offtakers are all commercial businesses has also been a significant feature of the development for Anthem, given that African Clean Energy Developments and EIMS Africa, which merged to form Anthem in 2025, were major participants in government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Cumming says that while there are many similarities between public and private procurement and that it remains supportive of REIPPPP, having C&I offtakers for the Northern Cluster has in some ways helped accelerate financial close and has also allowed for a degree of flexibility that is not possible under public procurement.

Nevertheless, Anthem will continue to pursue both public and private procurement opportunities in future.

MARKET OUTLOOK

However, Cumming expects there to be a temporary slowdown in project announcements as IPPs seek to understand what the new drivers of the market will be amid impending changes to regulations and ahead of the launch of the South African Wholesale Electricity Market, which has been delayed until early 2027.

“I think there may be a pause in project activity until there's a bit more certainty on how to interact with market reforms, the wholesale market and the bilateral market,” Cumming said.

There is also a need for clarity on Eskom’s approach to coal decommissioning, which is expected in September, while much will also depend on the pace at which the Transmission Development Plan is implemented by the NTCSA and private independent transmission project companies.

Besides continuing to develop its project pipeline, mostly in South Africa but also in Zambia, Anthem is spending a significant amount of time and effort to understand the market reforms and to prepare its commentary on the various regulations currently being considered by the National Energy Regulator of South Africa.

“Both as a business and as a country, we cannot afford for investment to stop.

“So for us it’s a combination of keeping our foot on the gas in developing our pipeline, closing projects where possible, and getting on top of the market reforms,” Cumming tells Engineering News.

Anthem, currently has 17 operational renewables facilities with a combined capacity of over 1.1 GW, over 1 GW in construction, and over 700 MW in financial close.

Anthem has set a target of securing 6 GW by 2030, and is also integrating battery energy storage systems to meet customer needs and evolving market stipulations.