27 MW Ilikwa Phase 2 Solar Plant Reaches Financial Close

Mainstream Renewable Power has reached financial close on the 27 MW Ilikwa Phase 2 Solar Plant. The site near Parys will expand the Ilikwa Solar Plant to 77 MW, building on the 50 MW developed under Phase 1; Phase 1 achieved Commercial Operation Date in July 2026, roughly four months before financial close for the second phase.

Investec Bank Limited is the financing partner for Ilikwa Phase 2 and will take a 30% equity interest, while Mainstream will retain a 70% stake. The same ownership structure applied to Phase 1. Investec provided the capital package for Phase 2 and committed to continue collaboration across the Ilikwa portfolio.

The additional 27 MW will be sold to multiple private commercial and industrial customers under Power Purchase Agreements of five to ten years. Mainstream will deliver those contracts through its electricity trading business, which is licensed by the National Energy Regulator of South Africa (NERSA). The company says shorter-term PPAs can make South Africa's private electricity market accessible to a wider range of businesses.

Construction of Phase 2 is expected to generate further employment and local procurement opportunities. During Phase 1 construction the development created more than 2,600 employment opportunities at peak activity, with most workers recruited from neighbouring communities including Tumahole, Schonkenville and Vredefort, and it supported local enterprise development.

Commercial operation of Ilikwa Phase 2 is expected in the fourth quarter of 2027. Once fully operational the expanded 77 MW Solar Plant is expected to produce approximately 75 GWh annually, roughly the power requirements of 20,000 homes, and to avoid about 72,000 tonnes of CO2 emissions each year. Mainstream is also evaluating a utility-scale Battery Energy Storage System for 2027 to add flexibility to the Solar Plant's supply to customers.