• Mulilo finalized financing for the 337 MWdc Middlepunt solar project under REIPPPP Bid Window 7.

• The plant will supply 240 MWac under a 20-year power purchase agreement with NTCSA.

• The project will generate about 770 GWh annually at a tariff of 458 rand/MWh ($28).

South Africa’s renewable energy support program reached a new milestone as a solar project secured financing. Independent power producer Mulilo announced on Tuesday, April 14, that it achieved financial close on the Middlepunt Solar PV plant, which has a capacity of 337 megawatts-peak in direct current (MWdc). The project is located near Welkom in the Free State province.

The project includes a contracted export capacity of 240 megawatts in alternating current (MWac). It therefore becomes the first project under Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to reach financial close.

“Financial close on the Middlepunt photovoltaic project marks a major step forward for South Africa’s renewable energy program under the seventh bidding round. Achieving this milestone required significant effort and close collaboration among a wide range of stakeholders from government, the private sector, as well as our financial, legal, and technical partners,” said Jan Fourie, Chief Executive Officer of Mulilo.

Strengthening the national grid over the long term

Once operational, the plant will generate approximately 770 gigawatt-hours (GWh) per year. Mulilo stated that it will inject the output into the national grid at a tariff of 458 rand per megawatt-hour, or about $28.

The company will supply electricity under a 20-year power purchase agreement signed with the National Transmission Company of South Africa (NTCSA), the transmission entity created following the restructuring of Eskom.

This financial close follows Mulilo’s announcement less than two weeks ago of a 15 billion rand (about $917 million) investment. The company plans to develop three solar plants and a storage system totaling an additional 716 MW. Mulilo aims to deploy 1 gigawatt of new capacity annually.

South Africa continues to face structural constraints on its power grid. However, the progress of the Middlepunt project illustrates accelerating private-sector investment aimed at strengthening national supply, particularly in renewable energy.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange J.A de Berry Quenum