Section 1 · Business Plan
Executive Summary
Solstice Energy (Pty) Ltd seeks ZAR 1.85 billion to develop a 100 MW utility-scale solar PV independent power producer in the Northern Cape under a 25-year PPA — a 16.8% project / 22.5% equity IRR opportunity with a 1.35x minimum DSCR.
1.1 Project Overview
Solstice Energy (Pty) Ltd will develop, construct, own, and operate a
100 MW alternating current (AC) utility-scale solar photovoltaic power
plant located in the Northern Cape Province of South Africa, one of the
world’s highest solar irradiation zones. The project will generate
approximately 240 GWh of clean electricity annually under a 25-year
inflation-indexed Power Purchase Agreement (PPA), delivering
predictable, contracted cash flows to equity investors and debt
providers throughout the project’s operational life.
South Africa’s solar energy market is experiencing rapid growth, with
cumulative installed capacity exceeding 10 GW by end-2025 and projected
to reach 15.25 GW by 2030 at a compound annual growth rate of 11.75%.
The country deployed 1.6 GW of new solar capacity in 2025, and the
latest Renewable Energy Independent Power Producer Procurement Programme
(REIPPPP) Bid Window 7 awarded a record 3.94 GW of solar capacity across
18 independent power producers — the largest solar procurement in South
Africa’s history. This robust policy framework, combined with persistent
grid instability, above-inflation Eskom tariff increases, and growing
corporate demand for clean energy, creates an exceptionally favourable
environment for bankable solar IPP projects.
1.2 Key Investment Metrics
| Metric | Value |
| Project Capacity | 100 MW AC / 130 MW DC |
| Total Project Cost | ZAR 1,850 Million (USD 103 Million) |
| Capital Structure | 70% Senior Debt / 30% Equity |
| Debt Amount | ZAR 1,295 Million |
| Equity Required | ZAR 555 Million |
| PPA Duration | 25 Years (inflation-indexed) |
| PPA Tariff (Year 1) | ZAR 0.62/kWh (USD 0.034/kWh) |
| Annual Generation (P50) | 240 GWh |
| Capacity Factor | 27.4% |
| Project IRR (Pre-Tax) | 16.8% |
| Equity IRR (Post-Tax) | 22.5% |
| Minimum DSCR | 1.35x |
| Average DSCR | 1.65x |
| CO₂ Avoided (Annual) | ~230,000 tonnes |
| Construction Jobs | 350–500 |
| Permanent O&M Jobs | 35–50 |
1.3 Investment Thesis
The Solstice Energy investment thesis is built on six fundamental
pillars. First, the project benefits from an exceptional solar resource
— the Northern Cape receives 2,200 to 2,500 kWh/m²/year of global
horizontal irradiation, placing it among the top solar locations
globally. Second, the 25-year PPA with an investment-grade off-taker
provides revenue certainty that is rare in infrastructure investments,
with inflation indexation protecting real returns over the project life.
Third, South Africa’s solar LCOE has fallen below ZAR 0.62/kWh, making
it the cheapest source of new electricity generation capacity and
creating a durable competitive advantage against Eskom’s rising tariffs.
Fourth, the REIPPPP framework provides a transparent, proven procurement
pathway with over ZAR 256 billion of private investment committed across
123 projects since inception. Fifth, the project’s ESG credentials —
avoiding approximately 230,000 tonnes of CO₂ annually, creating hundreds
of construction jobs, and incorporating a community ownership structure
— align with DFI mandates including the African Development Bank’s
“Light Up and Power Africa” strategy. Sixth, the platform is scalable to
300 MW through Phase 2 expansion and replicable across the SADC
region.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Solstice Energy (Pty) Ltd.