Free State, South Africa – Teraco, a leading data centre provider, has commenced construction on a substantial 120MW utility-scale solar PV plant in the Free State. This ambitious project marks a significant milestone in Teraco’s commitment to renewable energy.
Teraco announced it has secured its first grid capacity allocation from Eskom, enabling the start of construction. Once completed, the solar plant will be connected to the national electrical grid and will utilize the process of wheeling to distribute electricity across Eskom and municipal power networks.
Wheeling is a method that allows energy generators in remote areas to use existing transmission and distribution systems to deliver electricity to end-users in urban centers. This system is particularly beneficial in South Africa, where energy infrastructure is crucial for bridging the gap between production and consumption.
“This allocation is a significant step towards meeting our renewable energy ambitions and those of our clients. It is also only the first phase of our longer-term renewable energy commitment,” said Jan Hnizdo, CEO of Teraco. “We have been on a long journey over the last few years to obtain these approvals, and our aim now is to execute quickly on the opportunity.”
Hnizdo highlighted the broader implications of this development for South Africa’s energy sector. “In South Africa, we have various energy challenges, and this presents an incredible opportunity to meet our near-term renewable energy goals while adding additional power capacity to a generation-constrained grid,” he stated. “South Africa’s solar resource is a source of competitive advantage for data centres relative to other locations.”
When fully operational, the 120MW solar plant is expected to produce over 338,000 MWh annually, significantly contributing to the national power supply and supporting Teraco’s sustainability goals.
In addition to this large-scale project, Teraco has been progressively increasing its solar capacity over the past two years. The company has deployed approximately 6MW of rooftop solar integrated into its facilities, with plans to expand this to 10MW as new facilities become operational, according to Bryce Allan, Head of Sustainability at Teraco.
JUWI Renewable Energies South Africa and Subsolar are collaborating with Teraco on the development of the solar PV plant. JUWI has been appointed to design, manage procurement, and oversee construction and commissioning.
To finance the construction of the plant, Teraco has utilized a green loan, further underscoring its commitment to sustainable and environmentally friendly practices.
The launch of this project signifies a pivotal advancement in South Africa’s renewable energy landscape, promising to enhance energy security and support sustainable development goals.
