“NERSA has granted generation licences to four utility-scale solar projects, delivering a contracted capacity of 890MW from a total installed capacity of just over 1GW. The projects, led by Red Rocket SA and Engie, will be built in Mpumalanga and the Free State, supporting South Africa’s renewable energy expansion and national development goals.”
South Africa’s energy sector has taken a decisive step forward with the approval of four new solar projects under the REIPPPP Bid Window 7.3. Announced on 7 July 2026, these projects collectively represent more than 1GW of installed capacity and nearly 890MW of contracted capacity, reinforcing the country’s commitment to diversifying its energy mix and reducing reliance on coal.
Details of the Approved Projects
- Sculptor Energy (Red Rocket SA, Mpumalanga): 278.3MW installed / 240MW contracted.
- Springhaas Solar Facility 1 (Red Rocket SA, Free State): 277.1MW installed / 240MW contracted.
- Springhaas Solar Facility 6 (Red Rocket SA, Free State): 205.9MW installed / 170MW contracted.
- Corona Energy (Engie, Free State): 288MW installed / 240MW contracted.
Together, these projects will deliver 890MW of contracted capacity to the national grid once operational.
Regulatory Process
NERSA received licence applications in January 2026 and initiated a public participation process. A virtual hearing scheduled for 7 May 2026 was cancelled after no objections were lodged. Following a detailed assessment of technical, financial, economic, and legal criteria, NERSA concluded that all four projects met compliance requirements.
Strategic Importance
South Africa’s electricity crisis, marked by rolling blackouts and aging coal infrastructure, has made renewable energy expansion urgent. These approvals:
- Strengthen generation capacity by adding nearly 1GW.
- Support national development goals, including job creation and local industrial growth.
- Expand economic ownership opportunities in the energy sector.
Broader REIPPPP Context
Bid Window 7, opened in December 2023, targeted 5,000MW split between wind and solar. With these approvals, the solar allocation now stands close to 5GW, pushing South Africa’s cumulative solar capacity beyond 10GW. This follows the deployment of 1.6GW in 2025, underscoring the rapid growth of solar energy in the country.
Economic and Social Impact
- Job Creation: Construction and operation phases will generate thousands of jobs.
- Local Industry Development: Procurement rules encourage local manufacturing of components.
- Community Benefits: Projects are expected to contribute to social upliftment initiatives in Mpumalanga and the Free State.
Challenges Ahead
Despite progress, challenges remain:
- Grid Capacity: Transmission infrastructure must be upgraded to handle new generation.
- Financing Risks: Developers must achieve financial close before construction begins.
- Policy Certainty: Long-term stability in energy regulation is critical to sustain investor confidence.
Conclusion
The approval of these four solar projects represents a milestone in South Africa’s energy transition. By adding significant renewable capacity, the country is not only addressing immediate electricity shortages but also laying the foundation for a more sustainable and resilient energy future.
