Teraco secures grid capacity for major solar development in South Africa

SOUTH AFRICA – Teraco has secured its first grid capacity allocation from Eskom, enabling the commencement of construction on a 120MW utility-scale solar power plant in the Free State.

This grid allocation empowers Teraco to interconnect its 120MW solar facility with the national grid, facilitating the transmission of generated power across Eskom and municipal networks to its nationwide facilities.

Upon completion and full operation, the solar plant is projected to yield approximately 338,000MWh of electricity annually.

“This allocation marks a pivotal stride toward fulfilling our renewable energy aspirations and those of our clientele. It constitutes merely the inaugural phase of our protracted commitment to renewable energy,” remarks Jan Hnizdo, CEO at Teraco.

“In South Africa, we confront diverse energy challenges, presenting a remarkable opportunity to realize our immediate renewable energy objectives while augmenting power capacity on a grid constrained by generation.”

Hnizdo underscores South Africa’s solar assets as a competitive edge for the country’s data centers.

Teraco has engaged in a partnership with JUWI Renewable Energies South Africa and Subsolar for the development of the solar plant. JUWI assumes responsibility for the design, procurement, construction, and commissioning of the plant.

“This photovoltaic project stands as a significant component of our pursuit toward achieving our 100% clean energy vision,” asserts Bryce Allan, Head of Sustainability at Teraco.

“In tandem with this endeavor, Teraco has integrated approximately 6MW of rooftop solar into its facilities over the past two years, with plans to elevate this capacity to 10MW as new facilities come online.”

In late January 2024, Teraco’s Chief Financial Officer, Samuel Erwin, disclosed that the company had secured R11.2 billion (US$680 million) in funding to bolster its expansion initiatives and power infrastructure.

Erwin elucidates that a fraction of the loan financing, spearheaded by Absa Group, is designated for expanding the company’s solar capacity and data centers.

The remainder will be allocated toward refinancing existing facilities situated in Johannesburg, Cape Town, and Durban.

“We have set a goal to derive half of our power from renewable sources by 2027, escalating to 100% by 2035,” Erwin adds.

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