South African independent power producer Mulilo Energy Holdings has reached financial close on a 75-MWac/105-MWdc solar project in the Northern Cape Province, bringing the project closer to construction.
The project is one of the first ones in South Africa to reach the milestone under an energy aggregator model, Mulilo said in a statement without disclosing financial details. The power producer’s development partner in the project is domestic renewables investor H1 Capital.
By achieving financial close, Mulilo has successfully secured all necessary financing and met all conditions, allowing the project to move forward.
The Du Plessis Dam Solar PV2 park will be installed near the town of De Aar and is anticipated to generate about 248 GWh of electricity annually.
“This is more than just another solar project. It represents a new era of energy trading and innovation in South Africa,” said Jan Fourie, CEO of Mulilo.
“By leveraging an aggregator model, we are pioneering a more dynamic and efficient energy market that will ultimately benefit businesses and consumers alike”, he added.
The plant will be located near several other Mulilo projects and will be run under an off-take agreement with South African energy trader Etana.
The electricity will be fed into the national grid via the Kestrel Main transmission substation developed by Mulilo.
Cape Town-based Mulilo, which has over 420 MW of operational wind and solar capacity, last year closed 660 MW of new renewable energy projects.
In 2024, the company secured all needed funds to build a 75-MW solar park in Northern Cape to supply the local air separators of US industrial gases company Air Products.
“These achievements are the result of strong collaboration across financial, legal, and strategic advisory teams, including Pepper Tree Capital, Bowmans, ENS, and Standard Bank as Mandated Lead Arranger (MLA), ensuring that complex transactions such as this one are successfully structured and executed”, said Fourie.
Fourie also stated that the company has other projects that will be coming online in the future.
“We have an exciting pipeline of projects ahead, and we remain committed to accelerating South Africa’s shift to sustainable energy”.
Clean energy investment in South Africa
South Africa, in its bid to accelerate its clean energy transition, has sought and accepted external investment, to fund and expedite the energy transition process.
One such investment was a $157 million loan from Germany’s KFW Development Bank, secured by the city of Cape Town.
The funding aims to accelerate the city’s transition to green energy programs and enhance energy security.
Last year, South Africa awarded 1,760 megawatts of green-power projects as part of efforts to decrease its dependence on coal for electricity generation.
