SolarAfrica Energy, a South Africa-based independent power producer (IPP), has begun construction on its first utility-scale solar farm in South Africa’s Northern Cape province.

According to a report by Engineering News, the SunCentral project will have a total generation capacity of 1 GW, with phase 1 set to deliver 342 MW and subsequent phases increasing capacity.

“A project of this magnitude wouldn’t have been possible without the power of partnerships,” SolarAfrica Energy CEO David McDonald said at the groundbreaking ceremony on June 25.

“Over the past decade, [state-owned power 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,” he added.

The project was originally developed for submission to the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by Soventix South Africa. Soventix has sold the rights to Phase 1 to SolarAfrica but will continue the development of phases 2 and 3 for the project.

Engineering, procurement, and construction (EPC) firms Proconics, a South Africa-based engineering firm, and Sinohydro, a Chinese state-owned EPC company, will be key to the project’s delivery. Proconics will install SunCentral’s main transmission substation, while Sinohydro will manage the installation of over 500,000 solar panels, writes Engineering News.

The cost for phase 1 of the project is estimated at ZAR5bn ($277mn). The main transmission substation, crucial for transmitting power to the national grid, accounts for ZAR1bn ($55mn). The solar installation will add another ZAR4bn ($222mn), highlighting SunCentral's significant impact on South Africa’s power infrastructure.

Output from SunCentral will help reduce Eskom’s energy generation burden on a national scale. SolarAfrica said the solar farm would make it possible for more South African businesses to access cleaner and more affordable energy through wheeling. This model is no longer limited to large power users and has the potential to boost economic growth in the commercial and industrial (C&I) sectors.

“Investments of this nature go a long way in bolstering the grid’s ability to manage and distribute power across the country,” McDonald noted. The SunCentral project also aims to serve as a model for other wheeling projects in East and West Africa, particularly in Kenya and Nigeria.

According to SolarAfrica, the electricity generated at SunCentral will be 100% green and potentially up to 50% more affordable than conventional utility power. Businesses can sign virtual power purchase agreements (PPAs) with SolarAfrica to access this power.

Phase 1 has attracted companies like Vantage Data Centres, Attacq, and Enpower Trading. With phases 2 and 3 on the way, more businesses will have opportunities to benefit from cost savings and environmental advantages.

The company is finalising several other solar projects across South Africa, aiming to build a generation portfolio exceeding 3 GW. McDonald emphasised that the groundbreaking of SunCentral was not only a SolarAfrica’s achievement but a testament to the 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 stated.