Mainstream Renewable reaches financial close on 50 MW solar PV plant

Wind and solar energy company Mainstream Renewable Power has reached financial close on its 50 MW Ilikwa solar PV plant.

Construction of the plant, located in the Free State, has already started and it is expected to reach commercial operation in early 2026.

The power from the plant will supply multiple private commercial and industrial customers under flexible, shorter-term power purchase agreements (PPAs) in a new product called Renewable Energy Supply Agreements, or 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 ten years, the company says.

“We are excited to bring this new product to market, offering customers the opportunity to secure flexible, clean and lower-cost electricity,” Mainstream GM for Africa Hein Reyneke says.

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,” he notes.

Financial services and wealth management firm Investec is a project partner providing pre-construction development finance as well as debt and equity finance for the construction of the plant.

“Investec was able to implement bespoke funding solutions to enable the project to reach financial close,” says Investec Energy and Infrastructure Finance head Martin Meyer.

“We are proud to have partnered with Mainstream in this groundbreaking initiative that enhances energy access for businesses in South Africa and aligns with our commitment to sustainable development and the reduction of carbon emissions,” he adds.

Mainstream has a 70% equity stake in the project and Investec has a 30% equity stake.

Ilikwa is the second solar plant with private PPAs that Mainstream has taken to financial close in South Africa within the past year.

When fully operational, it will produce 141 GWh/y of electricity.