The Coega Development Corporation (CDC) is planning a R1.5bn solar project in the Eastern Cape, with construction slated for late 2027. The 100MW project will comprise 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 aims to supply electricity to businesses in the industrial zone and logistics park.
The project is currently in the development phase, with feasibility, environmental impact, and grid assessments expected to be completed in the first quarter of 2027. 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 has said that the government has recognised the project as a strategic integrated project, a status intended to prioritise key infrastructure developments. This designation aims to accelerate infrastructure delivery, economic growth, or environmental protection through co-ordinated planning and streamlined regulatory approvals. The CDC will seek funding after the studies are completed, with the project’s financing and ownership models still to be determined.
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’s energy initiatives aim 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.
The Dedisa power plant, a 335-342MW open-cycle gas turbine power station, supplies electricity to the national power system during periods of peak demand. The CDC said the timing of a conversion to natural gas would depend on the development of liquefied natural gas (LNG) import infrastructure, gas transmission networks, regulatory approvals, and commercial arrangements.
The CDC is also exploring other energy initiatives, including wind energy developments in advanced commercial negotiations and a small modular nuclear reactor in the Coega special economic zone. 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, under a 25-year terminal operator agreement signed in May.
Key points
- The Coega Development Corporation plans to invest R1.5bn in a 100MW solar project in the Eastern Cape.
- The project aims to improve electricity security and reliability, and make the zone more attractive to investors.
- The CDC is exploring other energy initiatives, including wind and nuclear energy developments.
