Mainstream Renewable Power, a solar and wind project developer, announced the financial closure of its 50 MW Ilikwa solar project in the Free State province of South Africa. The financial details of the transaction remained undisclosed.
The project’s construction has already begun, and commercial operation is expected in early 2026.
Once fully operational, the solar project is expected to produce 141 GWh of clean electricity annually, enough to power over 42,000 households.
The power produced will be supplied to multiple private commercial and industrial customers under flexible, shorter-term power purchase agreements in a new-to-market product called Renewable Energy Supply Agreements.
Mainstream has a 70% equity stake, while Investec owns a 30% equity stake. Investec is providing pre-construction development finance as well as debt and equity finance for the project’s construction.
Commenting on the announcement, 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 12 GW portfolio, Mainstream has one of the largest and most advanced pipelines of projects in the country. Importantly, we have a further 180 MW of projects ready for construction in 2025, and we encourage businesses to take advantage of the benefits this new product offers.”
According to Mercom’s 1H and Q2 2024 Solar Funding and M&A report, large-scale solar project funding in 1H 2024 came to $19.9 billion in 117 deals compared to $14.9 billion in 113 deals in 1H 2023.
Earlier this week, Highfield Solar, a solar project developer, secured project financing to support the construction and operation of two solar projects in Ireland with a total capacity of 132 MW. Coöperatieve Rabobank U.A., a Netherlands-based financial services company, provided the funding. The work on the grid connection infrastructure and the construction of the solar project is expected to begin in October 2024.
