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Phofu Solar Power Plant –
a game-changer in
sustainable energy

Phofu Solar Power Plant is a cutting-edge renewable energy project set to deliver up to 100 MW of clean power in the Moqhaka Local Municipality, Free State, South Africa. Spanning 214 hectares just south of Orkney, this solar farm will connect to the national grid via the R76 corridor, reinforcing energy security and sustainability. With operations expected to begin in early 2028, Phofu Solar is a bold step toward a greener, more resilient energy future.

Phofu Solar Power Plant (Pty) Ltd is a special-purpose vehicle (SPV), that was established to develop, build, operate and maintain an up to 100 MW Photovoltaic Power Plant in the Moqhaka Local Municipality, Free State Province, South Africa.

Project Information
Fact Sheet

  • The Project site is approximately 7km south of the town of Orkney

  • The Project site is approximately 214ha, and the project development footprint is about 198ha (it excludes the environmental and regulatory buffers)

  • The Project is situated in Ward 22 of the Moqhaka Local Municipality, Fezile Dabi District, Free State Province

  • The site access is off the S643, which can be accessed off the R76 main road

  • The proposed project overhead line runs along the R76 before it connects to the existing Grootkop-Mercury 1 132kV line via a LiLo connection

  • The project is expected to be operational by Q1 2028.

Project Benefits

The project benefits will be identified on both a local and national scale. The list below summaries the project benefits:

  • A radius of approximately 50km was selected for community benefits from the project. These benefits include employment opportunities to be provided from the construction and operation of the solar power plant

  • Creation of primary and secondary jobs for locals in the construction, operations and maintenance of the proposed solar facility

  • Long-term job security provided for locals in the operational phase, which in turn improves the livelihood and standard of living for those in the affected area.

  • Inclusion of social economic development for the communities around the project

  • The project aligns with the country's efforts to fulfil international climate commitments under the Paris Agreement

  • The project aids in helping the country meet its obligations for local commitments such as the National Climate Change Response White Paper

  • Aids in ensuring Energy security and stability in the country, as it contributes to diversifying the energy mix, thus reducing dependence on finite fossil fuels and mitigating risks from energy supply disruptions

Socioeconomics

The socio-economic needs of the community were assessed through focus groups, surveys and structured interviews in two (2) communities. The focus of the study was to identify what the affected communities need and what their development objectives are. The project was identified to have been able to aid in the following:

  • Community development: The proposed project could look to improving community facilities, such as schools and clinics, improving quality of life through socio-economic development plans.

  • Energy access: Increasing energy access to the locals through solar projects, thus introducing electricity access to remote areas and improving living standards.

  • Skills development: Skills training and upskilling of the local community by making use of skills development initiatives and capacity building.

  • Lower energy costs: Solar power can be a more cost-effective energy source for the mine, especially in the long term, leading to reduced operating costs.

  • Diversified energy supply: A solar project can provide a diversified energy supply for the off takers, reducing its reliance on a single energy source and improving energy security.

Environmental

The Phofu Solar Power Plant has obtained all approvals under South Africa’s National Environmental Management Act (NEMA). The project has also incorporated the International Finance Corporation’s Performance Standards on Environmental and Social Sustainability (2012) (IFC PS) and the Equator Principles (2020) (EP 4) in its development process to ensure that the project aligns with both local and international standards. These policies and standards ensure that the following is achieved:

  • Alignment with Carbon Reduction Policies: The Phofu Solar Power Project aligns with South Africa’s commitments to the Paris Agreement, and the National Climate Change Response White Paper

  • Reduced greenhouse gas emissions: Solar power is a clean energy source, reducing the country's reliance on fossil fuels and mitigating climate change.

  • Preservation of natural resources: Solar power does not consume water or other natural resources, unlike traditional power sources.

  • Reduced mine-related emissions: By providing clean solar power to the mine, the project can significantly reduce the mine's overall carbon footprint.

  • Improved air quality: Solar power can help reduce emissions from the mine's operations, improving air quality in the surrounding area.

  • Preservation of natural resources: Solar power does not consume as much water or other natural resources as fossil fuel facilities. This, in turn, reduces the off-takers Scope 2 emissions.

Several environmental studies were conducted to ensure that the project is constructed and developed sustainably. Vast studies were conducted by specialists who identified potential environmental concerns and equally recommended mitigation methods, which will be implemented throughout the development phases of the Phofu Solar Project.

Climate Change

The Climate Change Risk Assessment (CCRA) for the Phofu Solar Power Plant identifies physical and transition risks from climate change. This is aligned with the local legislation guidelines and the international guidelines. The Phofu Solar Power Plant is a Category B project, with emissions below the threshold requiring extensive transition risk assessments. The project will manage its physical climate risks and monitor regulatory changes to mitigate transition-related impacts.

Physical risks include extreme weather events like hailstorms, lightning, and high winds, which can damage the photovoltaic (PV) modules and infrastructure. Rising temperatures can reduce PV efficiency and accelerate ageing. Water scarcity could hinder maintenance, and there are significant risks from wildfires and flooding.

Transition risks arise from the shift to a low-carbon economy. These include potential challenges from policy changes, market shifts, and technological advancements. The plant must comply with evolving climate regulations, which could add costs or require operational changes. Market risks include new, more efficient renewable technologies that could affect the plant’s financial viability. Technological risks involve staying updated with advancements to maintain competitiveness and compliance.

Stakeholder Engagement

To ensure the project's impacts are beneficial and sustainable, community engagements have been made a priority; there have been and will continue to be regular consultations and transparent communication with residents. Furthermore, there has been ongoing monitoring and evaluation of the project's environmental and social impacts will be essential to manage any emerging issues effectively and ensure accountability to the community and other stakeholders.

Human Rights

The Phofu Solar Project is committed to engaging with the surrounding local communities through public meetings, direct notifications, and surveys. To ensure that the project addresses the community's and the broader supply chain's specific needs, a screening of human rights risks associated with the Phofu Solar Power Plant was done.

The study looked at possible impacts throughout the project's supply chain to ensure a cradle-to-grave assessment was done.

Health Impact Assessment

A Health Impact Assessment was conducted to ensure that the project considers factors at all stages of its life cycle. Several impacts were identified, which included both positive and negative impacts. The Phofu Solar Plant has the potential to bring significant benefits to the local communities but also poses several health risks that need careful management. By proactively addressing these risks through targeted health interventions, environmental management, and community engagement, the project can contribute to improved public health outcomes in the region. The Project has committed to ensuring that it engages with the community regularly to address health-related concerns and ensure that the project's social investments align with community health priorities becomes critical.

Downloadable Documents