Solar plants in South Africa rapidly advance in mainstream renewable power to meet existing and future solar power and environmental goals. It is supported by the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) and the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), as a part of which significant initiatives are made to develop large-scale solar projects in the African region.  These initiatives include upcoming projects such as the Grootfontein Solar project, Virginia Solar PV Park, Northern Cape-Solar, storage power plant, and many more. The South African government initiated these programs to expand the concentrated solar power (CSP) and solar photovoltaic (PV) sectors and address the increasing electricity demand for the future.

Global Solar PV market has seen impressive growth, with a Compound Annual Growth Rate (CAGR) of 22% between 2019 and 2021. The Middle East and Africa have slightly outpaced this with a CAGR of 23%. South Africa, Morocco, Zambia, and Australia are among the leading nations in solar project development. This blog mentions five upcoming solar power plants in South Africa that will contribute to the nation's electricity needs and environmental goals.

Top Upcoming New Solar Projects in South Africa 2025 (ranked based on capacity)

Oslaagte Solar 2

The Oslaagte Solar 2 is a 293 MW which is being developed by a consortium of Scatec Solar Africa, with Greenstreet and Redstreet SPV. 

Located in the Free State, it is part of the Kroonstad PV cluster, totalling 846 MW. It was awarded in the 7th round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by the Department of Electricity and Energy (DEE) in South Africa. Once operational, it will provide clean energy under a 20-year PPA. 

Scatec will be responsible for the EPC and Operations and Management (O&M). This project is co-owned by Scatec witha  50.9% equity stake with Stanlib’s infrastructure fund (through its renewable energy platform, Greenstreet). Redstreet and Community TRUST WILL HOLD 46.50% AND 2.6% of the stake in the project. The projects in the Kroonstad PV cluster are expected to receive their financial close in 2026.

Oslaagte Solar 3

The Oslaagte Solar 3 project, with a capacity of 293 MW, is situated in South Africa’s Free State province and is a part of the 846 MW Kroonstad PV Cluster. It was awarded during the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by the Department of Electricity and Energy (DEE) and is planned by a consortium of Scatec Solar Africa, Greenstreet, and Redstreet SPV.

Scatec will lead the project’s Engineering, Procurement and Construction (EPC) activities, as well as its long-term Operations and Maintenance (O&M). Ownership is structured with Scatec holding a 50.9% equity stake, Stanlib’s infrastructure fund (via its renewable energy platform, Greenstreet) as a major partner, while Redstreet and a Community Trust retain 46.5% and 2.6% stakes.

Grootfontein Solar Project 

The Grootfontein is three solar projects totaling 273 MW, and it was awarded to Scatec Solar in October 2021 by the Department of Mineral Resources and Energy in South Africa. It was awarded under the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP). This program is an initiative by the South African government to increase solar photovoltaic (PV) and concentrated solar power (CSP) sectors, with small hydro and onshore wind farm projects to meet the growing city power demands.

It is developed under the Engineering, Procurement, and Construction (EPC) contract by Scatec ASA. It is owned by a consortium led by Scatec with 51% equity, H1 Holdings (Local Black Economic Empowerment Partner) owning 46.5%, and a Community Trust holding 2.5%. After its commercial operations, likely in 2025, it will be operated and maintained by Scatec ASA. It began its construction in Q1 of 2024 with an estimated project cost of USD 207 Million. The power produced will be sold under a 20-year Power Purchase Agreement (PPA).

Leeuwspruit Solar Project

Leeuwspruit Solar project is a 260 MW solar project under the Kroonstad PV Cluster in South Africa’s Free State province. It is being developed by a consortium of Scatec Solar Africa with Greenstreet, and Redstreet SPV. The project was awarded by the Department of Electricity and Energy’s REIPPPP Bid Window 7.

The solar energy produced will be delivered to the national grid under a 20-year PPA and is financed through a combination of non-recourse debt of 90% and 10% equity. For this project, Scatec will maintain a 50.9% equity stake, while Stanlib’s Greenstreet platform will own 46.5%. A 2.6% stake is allocated to a Community Trust that will channel economic returns to local beneficiaries over the life of the project.

The project is expected to reach a financial close by 2026, and Scatec is responsible for the EPC activities of the project.

Virginia Solar PV Park

The Virginia Solar Park is a 240 MW solar PV project helping generate electricity for about 240,000 homes. Red Rocket will develop this project as a ground-mounted solar PV project in a single phase. It received its financial closure in Q2 of 2024 and will be constructed in 2025.

 It was awarded to a consortium led by Red Rocket, Reatile, Jade-Sky Energy, and the Red Rocket Opportunity Trust. It was awarded through the Bid Window 6 (BW6) of the Department of Mineral Resources and Energy (DMRE) renewable energy project on April 30, 2024. It will be the largest grid-connected solar farm built in Free State, South Africa, and will enter its commercial operations by 2026.   

Northern Cape Solar-Plus-Storage Project

TotalEnergies began with the construction of a major hybrid solar PV project in South Africa. It is a 216 MW solar plant with a 500 MWh battery energy storage system (BESS) built in Northern Cape Town Province. After its commercial operation, this solar power plant in South Africa will supply dispatchable electricity to the South African National Grid under a 20-year PPA, which is equivalent to 400 GWh per year. As per the PPA signed in November 2023, this solar power plant will supply 75 MW of dispatchable electricity to the national utility Eskom from 5. am to 9:30 pm every day.

This project is developed by TotalEnergies with a 35% stake and a consortium of Hydra Storage Holding with 35% and Reatile Renewables with 30%. This project was developed under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPP), a program launched by the Department of Mineral Resources and Energy to meet the country’s electricity supply demand. It received its financial close on 14 December 2023 and began its construction in 2023. It is likely to begin its commercial operation in 2025.

Florida Solar Park

The 200 MW Florida Solar plant is one of the solar projects in South Africa’s 7th REIPPPP round. This project is developed by a consortium of Red Rocket South Africa, MBY Energy, and Jade-Sky Energy. 

Awarded at a bid price of ZAR 506.89 per MWh (USD 28.61 MWh,) it will operate under a 20-year PPA agreement as Eskom is expected to serve as the offtaker for this project. The project will be located in the Free State province and joins five other solar plants awarded in the same round.

Dwaalboom 3 Solar Plant

The Dwaalboom 3 Solar Plant is a 180 MW solar plant that has been awarded the preferred bidder status under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 7. 

This solar plant is being developed by Red Rocket South Africa in partnership with MBY Energy and Jade-Sky Energy. It will be located in Free State province was selected a tariff of ZAR 499.99 per MWh. (USD 27.50 per MWh).

The power generated will be delivered to the national grid through a 20-year power purchase agreement. Eskom is the off-taker in line with REIPPPP precedent. The project is yet to receive its financial close.

Doornhoek Solar PV Park

The Doornhoek Solar PV Park is a 139.31 MW solar power plant built in the North-West of South Africa. This project is being developed in a single phase by a consortium led by AMEA Power with a 51% stake, Dzimuzwo Consulting with a 23.25% stake, Local Community Trust with a 23.25% stake, and Ziyanda Energy with a 2.5% stake, respectively. 

 It is designed as a ground-mounted solar PV project over 200 hectares that will reduce CO2 emissions by 290,000 tons annually. This solar project is expected to generate 325,000 MWh of electricity, supplying about 25,000 households through the South African national grid. The power generated here will be sold to Eskom Holdings under a 20-year PPA. The project's construction began in 2023 and will likely enter commercial operation by Q1 of 2025. 

Oya Energy Hybrid Facility

The Oya Energy Hybrid Facility is a 128 MW solar project built near Karoo in South Africa. Oya Energy was awarded this project under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) in March 2021. This program is an initiative by the South African Government to expand the country's solar power, wind, thermal energy storage, and hydro sectors.

 This project is built under a consortium led by Oya Energy, ENGIE, Meadows Energy, and Perpetua. It integrates 86.4 MW of wind energy, 155 MW of solar PV, and a 94 MW/242 MWh battery energy storage system, making it a hybrid solar plant. The solar energy production in this plant will be sold to state utility Eskom under a 20-year PPA.

Other Notable Solar Power Plants in South Africa

• Jasper Solar Power Project

• Redstone CSP

• Xina Solar Power

• Kathu Solar Park

• De AAR Solar Power

• Mulilo Prieska Pv

Current and Future Outlook of Solar Power Plants in South Africa

South Africa is diversifying its solar power industry through several projects as a part of its Integrated Resource Plan (IRP 2019). Several programs have been launched as part of this plan, such as the REIPPP, which proposes new solar projects in South Africa. The South African government aims to install 6 GW of utility-scale solar PV and an additional 6 GW of distributed power sources, primarily solar PV, by 2030. The Department of Energy supports these goals, with the sixth round set to allocate 1 GW of solar and 3.6 GW of wind capacity. Additionally, regulatory changes in 2021 increased the threshold for distributed solar projects, thus encouraging more private-sector investment and addressing frequent power shortages.

Looking ahead, South Africa is developing a new incentive scheme to promote commercial and residential solar installations further. This initiative and ongoing tender rounds are expected to boost solar capacity significantly. South Africa, with an existing 500 MW of CSP capacity, is a notable player in the global solar market, following leading countries like Spain (2.3 GW) and the USA (1.5 GW).

Conclusion

South Africa is a significant player in the global solar market, alongside leaders like Spain and the USA. With ongoing solar power projects in South Africa, such as the Grootfontein Solar Project and Northern Cape Solar-Plus Storage, the nation is building its solar capacity to meet its electricity needs sustainably and, reduce its carbon footprint, and reduce reliance on fossil fuels. The continued development of solar power plants in South Africa helps improve renewable energy projects, aiming for clean energy and its potential growth in the green energy sector.

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