Independent power producer SolarAfrica Energy has started construction on its first utility-scale solar installation, located in South Africa’s Northern Cape. Phase 1 of the SunCentral project will have about 342 MW of generation capacity. Phases 2 and 3 will bring the total capacity to 1 GW, making it one of the largest solar installations in a country racing to build renewable energy sources.
The project was originally developed and submitted to the South African Renewable Energy Independent Power Producer Procurement Program (REIPPP) by Soventix South Africa. The developer sold the rights to Phase 1 of the cluster development to SolarAfrica and will continue to develop Phases 2 and 3 of the project as time progresses.
Proconics and Sinohydro will act as EPC contractors. Proconics will install SunCentral’s Main Transmission Substation (MTS) while Sinohydro will handle the installation of more than 500,000 solar panels.
Phase 1 of the project is expected to cost just under $274 million. The $54 million cost of the MTS itself is being funded by SolarAfrica and will ensure that energy produced on site can be efficiently fed into the national transmission grid. “Investments of this nature go a long way toward strengthening the grid’s ability to manage and distribute power across the country,” he said. CEO of SolarAfrica Energy David McDonald at an opening ceremony held on 19 June.
Located between Hanover and De Aar, SunCentral will help lighten the generational burden State Electricity Service of South Africa Eskom It is one of many public-private partnerships aimed at addressing South Africa’s power generation needs. The country has developed over the past decade to move away from legacy coal power generation.
SunCentral will provide one-to-many power, meaning more South African businesses can access cheaper and cleaner energy through wheeled transport, an arrangement where public-private power producers can sell their electricity to customers through existing networks. The arrival of cheaper solar power is expected to boost economic growth in the country’s commercial and industrial sectors.
“A project of this magnitude would not have been possible without the power of associations,” he said McDonald’s “Over the past decade, Eskom has found new and tangible ways to make wheels [arrangements] a reality in South Africa. Their dedication to partnering with the private sector is a testament to their commitment to addressing South Africa’s power generation struggles,” McDonald said.
As part of the larger Starsight Energy Group, SolarAfrica’s SunCentral project will also serve as a model for the adoption of similar projects with wheeled arrangements in East and West Africa, with a specific focus on Kenya and Nigeria.
The clean energy generated at SunCentral will also be delivered to customers at around half the cost of the current cost of electricity, enabling South African businesses to offset rising energy costs while supporting their targets of sustainability. Companies 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 to Phase 1 of the project.
SolarAfrica is in the process of completing several other solar projects in other parts of the country as they build towards a generation portfolio of over 3GW.
McDonald added that the start of this project was not a success limited to SolarAfrica alone, but rather an achievement for all involved, as it underlines the immense potential of shooting in South Africa.
“SunCentral is now poised to take full advantage of this potential, contributing to a sustainable energy supply for our customers and communities at large,” he concluded.
