South Africa’s renewable energy sector is set for expansion following successful funding for two major projects: the Overberg Wind Farm in the Western Cape and the Du Plessis Dam Solar PV2 project in the Northern Cape.
Red Rocket has secured funding to begin phase one of the Overberg Wind Farm near Swellendam, which will eventually have a total capacity of 380MW.
The first phase will contribute 242MW, with Richards Bay Minerals (RBM), a subsidiary of Rio Tinto, securing a 20-year Power Purchase Agreement (PPA) for 230MW.
The wind farm is expected to generate 750 GWh of renewable electricity annually, reducing RBM’s carbon emissions by 700,000 tonnes of CO2, nearly 30% of its total emissions.
The project will feature 39 Goldwind 6.2MW turbines, backed by Absa Bank, Standard Bank, and the Development Bank of Southern Africa (DBSA). Commercial operations are scheduled to begin in early 2027.
The Du Plessis Dam Solar PV2 project near De Aar, Northern Cape, has also secured financing, paving the way for expanded solar energy production.
Jointly developed by Mulilo and H1 Holdings, the 75MWac (105MWdc installed capacity) solar farm will produce approximately 248 GWh of renewable electricity annually.
South African electricity trader Etana Energy—jointly owned by Chariot Limited (49%) and H1 Holdings (51%)—has signed a 20-year PPA to purchase the farm’s entire output.
Financial Backing and Construction Timeline
- Standard Bank provided an R1 billion payment guarantee.
- Norfund invested R372 million through preference shares.
- GuarantCo and British International Investment allocated a $100 million guarantee facility.
Construction is set to begin in Q2 2025, with power routed through the Kestrel Main substation, built by Mulilo.
Both projects highlight South Africa’s commitment to renewable energy expansion, catering to the growing demand for clean, stable power among industrial and commercial users.
