Commercial and industrial renewable-energy company SolarAfrica has reached financial close on SunCentral 3, the third and final 114 MW facility of Phase 1 of its 1 GW utility-scale SunCentral solar development.

The new funding, provided by financial services firm RMB and Investec Bank, completes the financial and development pathway for the first 342 MW phase of renewable energy generation capacity that will be wheeled through South Africa’s national grid.

The first 114 MW facility is expected to come online during the second half of this year.

“With financial close now achieved across the final part of Phase 1, our focus is fixed on delivery. We are now significantly closer to supplying businesses with affordable, clean energy at scale,” says SolarAfrica CEO David McDonald.

The financial close also demonstrates continued confidence in the project and the growing role wheeling will play in South Africa’s energy future.

“South African businesses are increasingly looking for long-term energy security of supply and cost certainty. Projects such as SunCentral enable companies to access green power while managing rising electricity costs and reducing their carbon footprint.

The market demand is definitely there, and we are continuing to build the infrastructure needed to meet it.”

Located between Hanover and De Aar, in the Northern Cape, SunCentral is being developed as a utility-scale solar PV plant for multiple offtakers and one-to-many wheeling.

SolarAfrica has also completed the project’s R1.35-billion main transmission substation that will connect SunCentral’s renewable- energy output to the national grid.

The substation will be handed over to the State-owned National Transmission Company South Africa and will form part of the transmission infrastructure required to connect new renewable-energy generation to the national grid.

Further, after completing financial close for the first phase, comprising SunCentral 1, 2 and 3, over 18 months, SolarAfrica has already begun advancing Phase 2 of the development, with processes and activities under way for SunCentral 4, says McDonald.

Future phases of SunCentral are expected to increasingly combine utility-scale solar generation with battery energy storage systems, which will enable renewable energy to be supplied beyond daylight hours.

Hybrid projects represent the next evolution of utility-scale wheeling, says McDonald.

“By pairing solar with battery storage, we can offer our customers a greater share of renewable energy within their overall electricity mix, while moving clean energy to periods when demand and electricity costs are typically higher.”

Hybrid projects also help to create a more balanced grid by reducing the concentration of solar generation during the middle of the day.

“The progress being made at SunCentral reflects our long-term commitment to supporting both energy security and the country’s broader energy transition. SunCentral is one component of our greater generation footprint that we’re developing across South Africa,” says McDonald.