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South Africa Advances Energy Transition with Middlepunt Solar Financial Close

South Africa Advances Energy Transition with Middlepunt Solar Financial Close

Posted on April 16, 2026 By Africa Digest News No Comments on South Africa Advances Energy Transition with Middlepunt Solar Financial Close

Mulilo has achieved financial close on the Middlepunt Solar PV project, a 337 MW (DC) / 240 MW (AC) utility-scale solar photovoltaic facility located near Welkom in South Africa’s Free State province.

The milestone, reached in April 2026, marks a significant step in the country’s renewable energy expansion under Bid Window 7.

Once fully operational, the plant is expected to generate approximately 770 GWh of clean electricity annually.

It will connect to the national grid via the Everest Main Transmission Substation and supply power under a 20-year Power Purchase Agreement (PPA) with the National Transmission Company of South Africa (NTCSA) at a tariff of ZAR 458 per MWh (approximately USD 27 per MWh).

Mulilo says Middlepunt PV plant to supply cheapest REIPPPP-procured  electricity
Artist’s rendering of the Middlepunt Solar PV project near Welkom, Free State

Project Structure and Development Partners

The Middlepunt Solar PV project is developed by Mulilo, which is jointly owned by Copenhagen Infrastructure Partners (CIP) and Norfund.

The financial close reflects strong collaboration among government entities, industry partners, and a team of financial, legal, and technical advisors.

Jan Fourie, Chief Executive Officer of Mulilo, commented:
“Reaching financial close on the Middlepunt Solar PV project is a major achievement. It reflects the tireless efforts and close cooperation of our partners across government and industry, as well as our financial, legal, and technical advisors. We are sincerely grateful to everyone who played a role in bringing this important renewable energy project to fruition.”

Contribution to South Africa’s Energy Transition

The project contributes meaningfully to South Africa’s energy diversification and decarbonisation objectives. Key benefits include:

  • Clean Energy Generation: Annual output of approximately 770 GWh will support the national grid and help reduce reliance on coal-fired power.
  • Long-Term PPA Stability: The 20-year agreement with NTCSA provides revenue certainty and supports long-term project bankability.
  • Economic and Social Impact: The development is expected to create jobs during construction and operation while contributing to regional economic activity in the Free State province.

This transaction forms part of Bid Window 7, one of the key procurement rounds under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which continues to attract substantial investment into utility-scale renewable energy.

READ ALSO:

How Mulilo Plans to Use Norfund’s Capital to Unlock a 30 GW Clean Energy Pipeline

Strategic Significance

The successful financial close of Middlepunt Solar demonstrates continued appetite from international and development finance partners for South African renewable energy projects despite ongoing grid and macroeconomic challenges.

It also highlights Mulilo’s growing role as a credible developer in the South African market.

The project’s focus on a cost-competitive tariff (ZAR 458/MWh) further illustrates the improving economics of solar PV in the region, making it an increasingly attractive component of the national energy mix.

Looking Ahead

Mulilo’s financial close on the 337 MW Middlepunt Solar PV project represents a concrete advancement in South Africa’s energy transition.

With an expected annual generation of 770 GWh under a 20-year PPA with NTCSA, the facility will contribute clean, reliable power to the national grid while supporting economic development in the Free State.

This milestone reinforces the role of well-structured renewable energy projects in diversifying South Africa’s energy supply and advancing decarbonisation goals.

For the most current project updates, refer to official announcements from Mulilo or the Department of Mineral Resources and Energy.

Mulilo Energy Overview

Mulilo Energy develops wind and Mulilo solar projects under South Africa’s renewable procurement programme.

Mulilo shareholders include Copenhagen Infrastructure Partners, which acquired a majority stake, alongside management and institutional investors. Mulilo funding comes from equity investors and project finance linked to renewable energy bids.

South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) awards projects through competitive rounds:

  • REIPPPP Bid Window 1 launched the first large-scale renewable projects in 2011.
  • REIPPPP Bid Window 5 preferred bidders were announced in 2021 with multiple wind and solar projects.
  • Bid Window 6 focused on additional wind and solar capacity; REIPPPP Bid Window 6 winners / Bid Window 6 Preferred Bidders included several large wind developers.
  • Preferred Bidders Bid Window 7 refers to the next procurement round currently under development.
  • REIPPPP Bid Window 8 is expected to expand renewable capacity further following earlier rounds.

These procurement rounds determine which developers like Mulilo build projects based on tariff competitiveness, grid readiness, and financing.

Funding

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