South Africa’s renewable energy sector has achieved a significant milestone with the financial closure of two major projects, reflecting strong investor confidence and progress toward sustainable energy goals.
Red Rocket, a leading independent power producer (IPP), has secured funding for the first phase of the Overberg Wind Farm near Swellendam in the Western Cape. Once fully developed, the wind farm will have a total capacity of 380MW, with the first phase delivering 242MW.
Of this, 230MW has been secured under a 20-year Power Purchase Agreement (PPA) with Richards Bay Minerals (RBM), a subsidiary of Rio Tinto. The project is expected to generate approximately 750 GWh of renewable electricity annually, reducing RBM’s carbon emissions by around 700,000 tonnes of CO2 equivalent — nearly 30% of the company’s total emissions.
The Overberg Wind Farm will feature 39 Goldwind 6.2MW turbines and has received financial backing from Absa Bank, Standard Bank, and the Development Bank of Southern Africa (DBSA). Commercial operations are scheduled to begin in early 2027.
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Du Plessis Dam Solar PV2 project
In parallel, the Du Plessis Dam Solar PV2 project in the Northern Cape has also reached financial close, paving the way for increased solar energy generation in South Africa. Developed by Mulilo and H1 Holdings, the 75MWac (105MWdc installed capacity) project will be constructed near De Aar and is projected to generate around 248 GWh of clean electricity annually.
Etana Energy, a South African electricity trader jointly owned by Chariot Limited (49%) and H1 Holdings (51%), has signed a 20-year PPA for the entire output. Financing includes a R1 billion payment guarantee from Standard Bank, a R372 million preference share investment from Norfund, and a $100 million guarantee facility from GuarantCo and British International Investment.
Construction is set to begin in the second quarter of 2025, with the power to be transmitted through the Kestrel Main substation developed by Mulilo. The project highlights Etana’s growing role in South Africa’s renewable energy landscape and the increasing demand for reliable, clean power from industrial and commercial customers.
