Mainstream reaches financial close on Ilikwa Phase 2 – additional 27 MW PV project

Mainstream Renewable Power (“Mainstream”) has reached financial close on Ilikwa Phase 2, a 27 MW extension of the Ilikwa Solar project near Parys in the Free State, South Africa. Once complete, Phase 2 will take Ilikwa’s total capacity to 77 MW, up from the 50 MW delivered by Ilikwa Phase 1, which reached Commercial Operation Date (COD) in July 2026, just four months before this latest milestone.

Like Phase 1, Ilikwa Phase 2 will supply power to multiple private commercial and industrial customers under shorter-term Power Purchase Agreements (PPAs) of between five and ten years, and a future Ilikwa utility scale Battery Energy Storage System is under consideration for 2027 to enhance the offer to customers. Shorter term PPAs open up South Africa’s private energy market to a wider range of businesses, giving them access to affordable, reliable and renewable power without the commitment of a traditional long-term PPA. Mainstream offers shorter term PPA’s through its own NERSA licensed electricity trading business.

Ilikwa Phase 2 builds on Mainstream’s growing track record of taking private-PPA renewable energy projects to financial close in South Africa, underscoring the pace at which the company is scaling its private offtake platform in the market.

Construction of Phase 2 is expected to extend the employment and local economic opportunities generated during the construction of Phase 1, which created more than 2 600 employment opportunities at peak construction, with the majority of workers recruited from the neighbouring communities of Tumahole, Schonkenville and Vredefort. The project also supported local procurement and enterprise development during construction.

Investec Bank Limited is the financing partner on Phase 2 and will hold a 30% equity interest, alongside Mainstream’s 70% stake — the same ownership structure as Phase 1.

“Investec is pleased to have supported Mainstream’s continued success in delivering renewable energy to the market.  Our bespoke financing solution for Ilikwa Phase 1 and 2 has enabled us to build a strong partnership with Mainstream, and we look forward to continued success across the Ilikwa portfolio,” commented Martin Meyer, Head of Energy and Infrastructure Finance at Investec (pictured right).

Commercial operation of Ilikwa Phase 2 is expected in the fourth quarter of 2027, at which point the full 77 MW Ilikwa Solar project will be operational.

“Reaching financial close on a further 27 MW at Ilikwa is a significant milestone and a testament to the success of the project’s first phase. It demonstrates the growing demand for flexible renewable energy solutions from private customers and Mainstream’s ability to scale these solutions to meet that demand. We look forward to continuing to deliver clean, competitively priced power to South African businesses,” said Hein Reyneke, General Manager, Mainstream South Africa.

Once fully operational, Ilikwa Phase 2 will produce approximately 75 million kilowatt hours of electricity per year — enough to power the equivalent of approximately 20 000 homes — while avoiding the annual release of approximately 72 000 tons of CO2.

ENDS.

About Mainstream

Mainstream Renewable Power was founded in 2008 with a view to develop utility scale renewable energy projects in developing markets around the world. Mainstream is a pure-play renewable energy company, with wind and solar assets across key markets Chile and South Africa.

The company has successfully delivered 6.6 GW of wind and solar generation assets to financial close ready.

About Mainstream South Africa

Mainstream Renewable Power South Africa is a well-established renewable energy developer and independent power producer established in 2009. The company develops, constructs and operates renewable energy projects across South Africa and has built a fully integrated platform spanning development, energy trading, project delivery, asset management and operations and maintenance.

The business currently has 175 MW of operating and in-construction assets, 329 MW of construction-ready projects (Wind, Solar and BESS) and a development pipeline of approximately 11.9 GW.

About Ilikwa PV Facility

Ilikwa PV Facility is a 77 MW solar photovoltaic facility located in South Africa’s Free State province, developed by Mainstream South Africa in partnership with Investec. Delivered in two phases — the 50 MW Ilikwa Phase 1, which reached Commercial Operation Date in July 2026, and the 27 MW Ilikwa Phase 2, expected in commercial operation in the fourth quarter of 2027 — the project supplies renewable electricity to private commercial and industrial customers under shorter-term Power Purchase Agreements (PPAs) of between five and ten years. Ilikwa supports South Africa’s evolving energy market by expanding access to reliable, competitively priced renewable energy.

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