Starsight Energy group CEO Paul van Zijl; Proconics CEO Melvin Jones; Eskom senior adviser IPPs Motlatsi Makhari; SolarAfrica Energy CEO David McDonald; Emthanjeni local municipality Mayor Lulamile Nkumbi; and Eskom senior adviser IPPs Moreetsi Balepile
Independent power producer SolarAfrica Energy has officially broken ground on its first utility-scale solar farm in the Northern Cape.
Known as SunCentral, Phase 1 of this project will total about 342 MW in generation capacity, with Phases 2 and 3 to raise the capacity to 1 GW, making it one of the largest projects of its kind in the country.
“A project of this magnitude wouldn’t have been possible without the power of partnerships. Over the past decade, [State-owned utility] Eskom has found new and tangible ways of making wheeling a reality in South Africa.
“Their dedication to partnering with the private sector is proof of their commitment to address South Africa’s power generation struggles,” SolarAfrica Energy CEO David McDonald said during the groundbreaking ceremony on June 25.
Representatives from the local Emthanjeni municipality and business chamber also attended the event.
Mayor Lulamile Nkumbi expressed the municipality’s support for the project and emphasised the importance of maintaining open and transparent communication between all stakeholders.
A special mention went to Soventix South Africa, which originally developed the project for submission to the Renewable Energy Independent Power Producer Procurement Programme. Soventix sold the rights to Phase 1 of the cluster development to SolarAfrica and will continue to develop Phases 2 and 3 for the project going forward.
Engineering, procurement and construction firms Proconics and Sinohydro will play a key role in the project delivery. Proconics will install SunCentral’s main transmission substation (MTS), while Sinohydro will be responsible for the installation of more than 500 000 solar panels.
Phase 1 of the project will cost about R5-billion. The MTS, totalling about R1-billion, is funded by SolarAfrica, which is part of the Starsight Energy Group, and will play a pivotal role in ensuring that the power produced on-site can be transmitted into the national transmission grid.
The solar installation adds another R4-billion to the investment, emphasising the significant contribution SunCentral will make to the country’s power infrastructure.
“Investments of this nature go a long way in bolstering the grid’s ability to manage and distribute power across the country,” McDonald said.
The SunCentral project will also serve as a blueprint for the adoption of other wheeling projects in East and West Africa, with a specific focus on Kenya and Nigeria.
Located between Hanover and De Aar, the SunCentral project will include several corporate social responsibility (CSR) projects that will be implemented in collaboration with local members and leaders for the betterment of the surrounding communities.
“The CSR projects will be aligned to the community needs assessment that will be continuously updated as well as the UN Sustainable Development Goals, National Development Plan, Emthanjeni Local Municipal Strategic Objectives and SolarAfrica’s company values,” McDonald said.
On a national scale, SunCentral will contribute towards reducing the generation burden for Eskom.
SolarAfrica said the SunCentral solar farm would provide power on a one-to-many basis “… meaning more South African businesses can access cheaper, cleaner energy through wheeling. It’s no longer reserved for mega power users, and this will greatly drive economic growth in the commercial and industrial sectors.”
The power generated at SunCentral will be 100% green, SolarAfrica claimed, and come at a tariff of up to 50% cheaper than utility power.
Businesses that are interested in accessing this power can sign a virtual power purchase agreement with SolarAfrica.
“With organisations like Vantage Data Centers, Attacq and Enpower Trading already signed up for Phase 1 of the project, it’s clear that businesses are keen to benefit from the cost-saving and environmental benefits of wheeling. With Phases 2 and 3 in the pipeline, there will be even more opportunities for businesses to sign up,” SolarAfrica said.
The company is in the process of finalising several other solar projects in other parts of the country, as it builds towards a generation portfolio totalling more than 3 GW.
McDonald added that breaking ground on SunCentral project was not an achievement limited to SolarAfrica alone, but rather an achievement for all involved as it underscored the immense potential of wheeling 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.