Financial Journalist
The Coega Development Corporation (CDC) plans to begin construction of a solar project in the Eastern Cape at the end of 2027, with the estimated R1.5bn investment intended to supply electricity to businesses in its industrial zone and a logistics park in Kariega.
The 100MW project comprises an 80MW solar installation at the Coega special economic zone and a 20MW facility at the Nelson Mandela Bay Logistics Park in Kariega.
The project remains in the development phase, with feasibility, environmental impact and grid assessments expected to be completed in the first quarter of 2027. The CDC said it would seek funding after the studies are completed, with the project’s financing and ownership models still to be determined.
The CDC said the government had recognised the project as a strategic integrated project, a status intended to prioritise key infrastructure developments.
Strategic integrated projects are major national or regional initiatives designated to accelerate infrastructure delivery, economic growth, or environmental protection through co-ordinated planning and streamlined regulatory approvals.
A service provider appointed in March 2026 is conducting the assessments, along with a cost-benefit analysis.
The R1.5bn capital cost estimate is based on desktop feasibility studies conducted in 2024 and excludes battery energy storage. The CDC said the total investment, including storage, would be confirmed in the first quarter of 2027.
The solar farm is intended to supply businesses operating in the Coega special economic zone and the logistics park in Kariega. The CDC is also exploring other potential customers but has not disclosed how much electricity prospective customers may buy or what tariffs they could pay.
The project is part of the corporation’s broader plans to expand energy options for industrial users. The CDC has said its energy initiatives are intended to improve electricity security and reliability, diversify energy sources and make the zone more attractive to investors.
Alongside the solar project, the corporation is working with government and other stakeholders to support the development of gas infrastructure that could allow the Dedisa peaking power plant in Coega to switch from diesel to natural gas.
Dedisa, a 335-342MW open-cycle gas turbine power station in zone 13 of the Coega special economic zone near Gqeberha, supplies electricity to the national power system during periods of peak demand.
The CDC said the timing of a conversion would depend on the development of liquefied natural gas (LNG) import infrastructure, gas transmission networks, regulatory approvals and commercial arrangements. It did not provide a target date for the conversion.
The planned Ukwanda LNG import terminal at the Port of Ngqura is intended to supply natural gas to power generation plants and industrial users in the Eastern Cape. In May, the Transnet National Ports Authority signed a 25-year terminal operator agreement with Ukwanda LNG, a joint venture between Tamasa Energy Group and the state-owned Strategic Fuel Fund, to develop the facility.
The corporation also identified wind energy developments in advanced commercial negotiations and said it was working with partners to explore a small modular nuclear reactor in the Coega special economic zone. It did not provide investment estimates or implementation timelines for those initiatives.
Business Day
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