SolarAfrica has secured R1.5 billion in funding to develop SunCentral 2, a 114-megawatt utility-scale solar plant in South Africa’s Northern Cape, as part of its broader SunCentral development.
SunCentral is a large photovoltaic project located between Hanover and De Aar and is being developed in three phases. The newly funded SunCentral 2 phase follows SunCentral 1, which reached financial close at the end of 2024, also with a capacity of 114 MW.
Together with the planned SunCentral 3 phase, the project will reach a combined capacity of 342 MW. At full build-out, SolarAfrica aims to scale SunCentral to 1 gigawatt, positioning it among the country’s largest solar developments structured specifically for one-to-many bilateral wheeling.
Wheeling allows electricity generated at a single location to be sold directly to multiple customers through the national grid, enabling commercial and industrial users to source power independently of their physical location.
This model has gained traction in South Africa as businesses seek alternatives to grid-supplied electricity amid rising tariffs and ongoing supply constraints.
SolarAfrica’s chief executive officer, David McDonald, said the latest funding reflects continued demand from businesses for reliable and predictable power supply.
He noted that SunCentral is being designed to support long-term cost planning and reduce exposure to volatility in utility pricing, rather than serving as a short-term response to supply disruptions.
The company describes SunCentral as a long-term infrastructure investment rather than a single project, with each phase contributing to both generation capacity and supporting grid infrastructure.
A portion of the funding for each SunCentral plant is allocated to the development of a dedicated main transmission substation, which is intended to strengthen evacuation capacity and support future expansion.
SolarAfrica forms part of the Starsight Energy Africa Group and is backed by African Infrastructure Investment Managers and Helios Investment Partners.
Read Also: What is South Africa doing to address the wind energy skills shortage ahead of the 44GW target?
The SunCentral development is a central component of SolarAfrica’s wider wheeling pipeline, which totals approximately 3 GW of projects currently under development across South Africa.
As private power procurement expands, wheeling arrangements are increasingly being positioned as a way for commercial and industrial customers to secure long-term energy supply while managing costs and emissions.
According to SolarAfrica, this approach allows companies to shift from reacting to tariff increases toward more predictable energy planning, while reducing reliance on utility power that remains exposed to operational and pricing uncertainty.
The SunCentral 2 project marks the next step in that strategy, as SolarAfrica moves from initial project financing toward scaled deployment of utility-scale solar capacity linked directly to private sector demand.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
