South African independent power producer (IPP) SolarAfrica has advanced the development of its flagship ZAR1.8bn ($97.7mn) utility-scale solar project, SunCentral, in the Northern Cape province of South Africa.

The company, which is part of the pan-African clean energy platform Starsight Energy Africa Group, has reached financial close on the first 114 MW component of the project alongside funding partners Investec and RMB.

The investment into SunCentral marks the start of the project’s rollout in South Africa, Starsight Energy said in a press statement on February 24.

SunCentral, a utility-scale solar photovoltaic (PV) plant located between Hanover and De Aar in the Northern Cape province, will be developed in three phases. According to the statement, Phase 1, with a combined capacity of 342 MW, will be delivered through a staged roll-out of three 114-MW facilities. The plant will deliver renewable energy to off-takers by wheeling it through South Africa’s power grid. Phase 2 and 3 will increase SunCentral’s capacity to 1 GW.

Similarly sized projects usually offered wheeling on a one-to-one basis, with one generation plant supplying one off-taker, Starsight Energy said in the statement. However, SolarAfrica’s project would offer wheeling on a one-to-many basis, making renewable energy available to a wider pool of businesses in the country.

“Reaching financial close on the first 114 MW of our utility-scale wheeling development and main transmission substation (MTS) investment marks a significant milestone in our commitment to advancing sustainable energy solutions for our customers in the commercial and industrial sectors,” said Charl Alheit, SolarAfrica’s chief investment officer (CIO), who led the financial close.

Alheit pointed out that the substantial size of SunCentral would bring cheaper, greener power to even more businesses in South Africa. “We are excited to see this project move forward as we continue contributing to the energy transition while delivering long-term value to our customers,” he added.

According to Starsight Energy, the SunCentral project will act as a blueprint for similar or smaller off-site generation projects in other key African markets. Starsight Energy’s companies currently operate in Eastern, Western and Southern Africa offering cost-effective solutions, including solar energy, battery storage, wheeling and energy management, to commercial and industrial (C&I) customers.

“The construction of SolarAfrica’s SunCentral is a critical step in our journey to expand clean energy adoption across Sub-Saharan Africa,” said Starsight Energy Africa Group CEO Paul van Zijl. “We are excited to move this project forward and continue delivering long-term value to our customers.”

SolarAfrica is supported by top-tier investors, African Infrastructure Investment Managers (AIIM) and Helios Investment Partners, who have extensive experience spanning decades in funding and fostering innovation across Africa.

“The modular approach to construct the MTS and plug in subsequent 114 MW modules provides a superb platform for SolarAfrica to scale at pace to meet the needs of the C&I customers in South Africa who want to secure price certainty and cost efficiencies while furthering South Africa’s Just Energy Transition,” said Thor Corry, investment director at AIIM.

Corry added that projects like that were “crucial” to South Africa, as the country needed to install up to 30 GW of new capacity by 2030 to meet its climate commitments and energy needs.