Mainstream Renewable Power has reached financial close on its 50MW Ilikwa solar plant in South Africa.
The power from the plant will supply multiple private commercial and industrial customers under flexible, shorter-term PPAs in a new-to-market product called Renewable Energy Supply Agreements (RESAs).
This new product opens up the energy market in South Africa by giving a wider range of businesses access to affordable, reliable and renewable power through shorter-term energy contracts of between five and 10 years, Mainstream said.
Mainstream’s general manager for Africa, Hein Reyneke, said: “We are excited to bring this new product to market, offering customers the opportunity to secure flexible, clean and lower-cost electricity.
“With a 12GW portfolio, Mainstream has one of the largest and most advanced pipelines of projects in the country.
“Importantly, we have a further 180MW of projects ready for construction in 2025 and we encourage businesses to take advantage of the benefits this new product offers.”
Investec is a project partner, providing pre-construction development finance as well as debt and equity finance for the construction of the plant. Mainstream has a 70% equity stake in the project and Investec has a 30% equity stake.
Construction of the Ilikwa solar PV plant, located in the Free State province, has already commenced, and is expected to reach commercial operation in early 2026.
This is the second solar plant with private PPAs that Mainstream has taken to financial close in South Africa within the last year.