The Mahlako Energy Fund has announced that its 10 MW solar plant in Kathu, in the Northern Cape, has started commercial operation.

The project marks a milestone in that it is the first large-scale energy wheeling project in South Africa, providing clean energy to Amazon Web Services (AWS) through the Eskom grid.

Mahlako Energy Fund, operated and managed by Mahlako Financial Services (MFS), holds a 45% stake in the project.

Through the collaboration between MFS, AWS and SOLA Group, this project allows South Africa to demonstrate the potential of grid independence and wheeling.

“We are delighted that the project has achieved the commercial operation date. This is a significant position for our fund, which is 100% black-women-owned and operated, showcasing our commitment to growing our portfolio to bring about desired returns for our investors, and our confidence in the renewable energy space as viable and attractive to facilitate economic transformation,” says Mahlako Energy Fund principal Makole Mupita.

This project demonstrates one of the ways the private sector can work with government through the Department of Minerals and Energy, supported by the National Energy Regulator of South Africa and power utility Eskom, to bring about new models for renewable energy generation in South Africa.

The project, based in Kathu in the Northern Cape, not only uses the province’s vast potential for renewable energy and for the development of the green economy, but also addresses economic empowerment, inclusivity and prosperity, specifically through the participation of underrepresented population groups, Mahlako Energy Fund states.

The project contributed to the province’s economic development during the building phase and will, over its lifetime, sustain permanent jobs in electrical maintenance, operation and security.

The fund confirms that it has more projects such as this in the pipeline.