Mainstream Renewable Power, a leading global wind and solar company, has successfully reached financial close on its 50 MW Ilikwa solar PV plant in South Africa. The energy generated by the plant will be supplied to multiple private commercial and industrial customers under shorter-term Power Purchase Agreements (PPAs), through a newly introduced product known as Renewable Energy Supply Agreements (RESAs).

This innovative product is set to transform the South African energy market by providing businesses with more accessible, affordable, and reliable renewable energy options. The RESAs offer flexible contracts ranging between five to 10 years, giving companies the flexibility to choose renewable power without committing to long-term contracts.

Hein Reyneke, General Manager for Africa at Mainstream, commented: “We are excited to bring this new product to market, offering customers the opportunity to secure flexible, clean, and lower-cost electricity. With our 12 GW project portfolio, we have one of the largest and most advanced pipelines in the country. Additionally, we have another 180 MW of projects ready for construction in 2025, and we encourage businesses to leverage the benefits of this product.”

Investec, a project partner, played a pivotal role in securing pre-construction development finance, along with debt and equity finance for the plant’s construction. Martin Meyer, Head of Energy and Infrastructure Finance at Investec, stated: “We are proud to partner with Mainstream in this groundbreaking initiative. It enhances energy access for businesses in South Africa while aligning with our commitment to sustainable development and carbon emission reduction. Our team implemented bespoke funding solutions to enable the project to reach financial close.”

Mainstream holds a 70% equity stake in the Ilikwa project, while Investec holds 30%. Construction of the solar PV plant, located in South Africa’s Free State province, has commenced and is scheduled to begin commercial operations in early 2026. Once fully operational, the plant will produce 141 GWh of electricity annually, enough to power over 42,000 homes, and will prevent the release of approximately 100,000 tons of CO2 each year.

This is the second solar plant with private PPAs that Mainstream has brought to financial close in South Africa over the past year.