Independent power producer, SolarAfrica Energy has officially broken ground on its first utility-scale solar farm, known as SunCentral, in De Aar in the Northern Cape.
At the groundbreaking: Paul van Zijl (Group CEO, Starsight Energy), Melvin Jones (CEO, Proconics), Motlatsi Makhari (Senior Advisor IPPs, Eskom), David McDonald (CEO, SolarAfrica Energy), Lulamile Nkumbi (Mayor, Emthanjeni Local Municipality), Moreetsi Balepile (Senior Advisor IPPs, Eskom).
Phase 1 of this project will establish around 342 MW in generation capacity. Phases 2 and 3 will take total generation capacity to 1 GW – making this one of the largest projects of its kind in the country.
A project of partnerships
During the breaking ground ceremony, David McDonald, CEO of SolarAfrica Energy, outlined the significance and strength of the partnerships behind SunCentral – a key driver for its success.
“A project of this magnitude would not have been possible without the power of partnerships. Over the past decade, Eskom has found new ways of making wheeling a reality in South Africa. Its dedication to partnering with the private sector demonstrates its commitment to addressing South Africa’s power generation struggles,” McDonald said.
The event was also attended by representatives of Emthanjeni Municipality and Business Chamber, and McDonald acknowledged the importance of fostering positive relationships within the community. Mayor Lulamile Nkumbi expressed the municipality’s support for the project and emphasised the importance of maintaining open and transparent communication between all stakeholders.
Special mention was made of Soventix South Africa, the company that originally developed the project for submission in the Renewable Energy Independent Power Producer Procurement Programme (REIPPP). 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 as time progresses.
Engineering, Procurement and Construction (EPC) firms Proconics and Sinohydro will be key to the project’s success. Proconics will install SunCentral’s Main Transmission Substation (MTS) and Sinohydro will be responsible for the installation of more than 500 000 solar panels.
Infrastructure investments
Phase 1 of the project represents an investment of just under R5 billion. The MTS, with a total cost of around R1 billion, is funded by SolarAfrica and will play a pivotal role in ensuring the power produced on site can be evacuated into the national transmission grid. The solar installation carries a cost of around R4 billion. This is an indication of 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.
As part of the greater Starsight Energy Group, SolarAfrica’s SunCentral project will also serve as a blueprint for the adoption of wheeling projects in East and West Africa, with a specific focus on Kenya and Nigeria.
Power for good
A project of this scale has an impact at local and national levels. Located between Hanover and De Aar, SunCentral brings with it several corporate social responsibility projects that will be implemented in collaboration with local members and leaders to support an improved quality of life among the surrounding communities.
“The CSR projects will be aligned to the community needs assessment, which will be updated regularly, as well as the United Nations Sustainable Development Goals, the National Development Plan, Emthanjeni Local Municipal Strategic Objectives, and SolarAfrica’s company values,” McDonald said.
At a national level, SunCentral will contribute towards lightening the generation burden carried by Eskom, as one of the private public partnerships that can help South Africa address its power deficit.
Wheeling greener power to more businesses
SunCentral will provide power on a one-to-many basis, so more South African businesses can access cheaper, cleaner energy via wheeling. It is no longer reserved for mega power users, and this will contribute to driving economic growth in the commercial and industrial sectors.
The power generated at SunCentral will be 100% green and will be supplied at a tariff of up to 50% less than utility power, offering South African businesses a way to counteract continuing electricity tariff hikes and support their sustainability goals. Businesses interested in accessing this power can sign a Virtual Power Purchase Agreement with SolarAfrica.
Organisations such as Vantage Data Centres, ATTACQ and Enpower Trading have already signed up for Phase 1 of the project, a clear indication 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 more opportunities for businesses to sign up.
SolarAfrica 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 was an achievement not only for SolarAfrica, but for all involved, and it reflects the significant potential of wheeling in South Africa. “Harnessing this potential, SunCentral will contribute to a sustainable energy supply for our customers, and the broader communities,” he said.
For more information visit: https://solarafrica.com
