- Mainstream Renewable Power finalised financing for a 50 MW solar project in Ilikwa, South Africa, introducing flexible Renewable Energy Supply Agreements (RESA).
- The Ilikwa solar plant will generate 141 GWh annually, powering 42,000 households and cutting 100,000 tonnes of CO2 emissions yearly.
- Mainstream’s RESA offers five to ten-year contracts, providing companies with adaptable, cost-effective renewable energy solutions.
Mainstream Renewable Power has secured financing for its 50 MW solar project in Ilikwa, South Africa. Located in the Free State province, the project introduces Renewable Energy Supply Agreements (RESA), offering private and industrial companies flexible five- to ten-year contracts.
Investec, the major financial partner, provided pre-construction funding and contributed debt and equity investments. Mainstream holds a 70% stake, while Investec controls the remaining 30%. This partnership highlights their commitment to diversifying funding to drive renewable energy growth in South Africa.
The Ilikwa solar plant will produce 141 GWh of electricity each year to power over 42,000 households. It will also cut carbon emissions by 100,000 tonnes annually. Mainstream launched a similar project in South Africa last year, underscoring the growing trend toward private renewable energy agreements to bolster energy security.
Mainstream’s RESA offers a flexible alternative to traditional 20-year Power Purchase Agreements (PPAs). With contracts ranging from five to ten years, companies can better manage energy costs and adapt quickly to changes in technology or regulations. These shorter contract terms address the rising demand for adaptable, cost-effective renewable energy solutions.
By introducing RESA, Mainstream responds to businesses seeking access to clean energy without long-term commitments. This flexibility helps companies meet shifting energy needs and market conditions while promoting dynamic energy management and a greener energy mix. Clients can quickly adjust their energy strategies as the market evolves.
Mainstream continues to expand its presence in South Africa, with 12 GW of projects under development across Africa. Of that, 180 MW will reach the construction stage by 2025. This growing portfolio establishes the company as a significant player in Africa’s renewable energy sector.
South Africa faces increasing pressure to improve energy security and lower carbon emissions. Projects like Ilikwa help accelerate the country’s shift toward renewable energy. Mainstream’s investments are crucial in offering tailored energy solutions that meet local demands and broader environmental goals.
The Ilikwa project highlights the importance of diversified investment strategies in renewable energy. By bringing in multiple financial partners, Mainstream ensures a solid foundation for future growth. This approach mitigates risks and attracts more investors to South Africa’s renewable energy sector.
Mainstream’s success with RESA and the Ilikwa project may be a model for other emerging markets. As businesses seek flexibility in energy contracts, short-term agreements that offer cost savings and adaptability will gain traction. Mainstream’s strategy appeals to markets looking for sustainable and flexible energy options.
The Ilikwa solar project marks a critical step in South Africa’s renewable energy journey. It demonstrates how innovation, public-private partnerships, and flexible contracts can drive the transition to cleaner energy. Mainstream Renewable Power continues to reshape South Africa’s energy future.