Mainstream Renewable Power has achieved financial close on its 50 MW Ilikwa solar plant located in South Africa. The facility will provide power to various private commercial and industrial customers through flexible, shorter-term Power Purchase Agreements (PPAs) under a new product called Renewable Energy Supply Agreements (RESAs).
This innovative approach is set to enhance the energy market in South Africa by enabling a broader range of businesses to access affordable, reliable, and renewable power through contracts ranging from five to ten years.
Hein Reyneke, Mainstream's general manager for Africa, expressed enthusiasm for the new product, stating, “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.” He also highlighted the readiness of an additional 180 MW of projects for construction in 2025, encouraging businesses to leverage the benefits of the new offering.
Investec is partnering on the project, providing pre-construction development finance along with debt and equity financing for the plant's construction. Mainstream holds a 70% equity stake in the project, while Investec possesses a 30% stake.
Construction of the Ilikwa solar PV plant, situated in the Free State province, has already begun, with expectations to reach commercial operation in early 2026. This marks the second solar plant with private PPAs that Mainstream has secured financial close on in South Africa within the past year.
