South African firm, Lyra Energy, has begun construction of the R4 billion ($238 million) Thakadu solar photovoltaic (PV) plant in South Africa, a 255-megawatt facility located on the border of the Free State and Northwest provinces, following financial close on the project.
The solar facility will be built in two phases. It has secured power purchase agreements with three private offtakers for a portion of its output.
The agreements allow the companies to buy electricity directly from the project once it begins operating.
According to the developers, the first phase of the project is expected to reach commercial operation in the first half of 2027. Construction of the second phase is scheduled to begin in the second half of 2026.
The project will be financed through a mix of equity and non-recourse project debt with a target leverage of 80%. Standard Bank of South Africa is acting as the senior lender for the development.
Project construction and operations details
Lyra Energy develops and operates its own power projects from start to finish. The company originates, finances, builds, owns and operates its projects, maintaining accountability across the full project lifecycle.
The Head of Lyra Energy, Eben De Vos stated that the structure provides customers with direct alignment on performance, delivery timelines and long-term asset management.
He added that the model allows the company to focus on building power infrastructure rather than acting primarily as an electricity trader.
Renewable energy company Scatec will handle engineering, procurement and construction for the Thakadu plant, and will also be responsible for asset management, operations and maintenance once the facility becomes operational.
Scatec has previously delivered large-scale solar projects across Africa, including the Kenhardt Solar Power Complex in South Africa.
The firm will oversee construction activities and ensure the facility is integrated into the national power grid once completed.
“At a time when reliable supply remains critical to economic performance, projects like Thakadu demonstrate that privately contracted renewable energy can be delivered at scale,” De Vos said.
Meeting South Africa’s energy demand
South Africa has faced persistent electricity supply constraints in recent years, with outages commonly referred to as load shedding affecting businesses and households.
The shortages are linked to aging coal plants operated by the state-owned utility Eskom.
These supply issues have led to interest in independent generation projects that can add capacity to the grid.
The government has also introduced reforms to encourage private investment in electricity generation.
One of the policy frameworks supporting this shift is the Renewable Energy Independent Power Producer Procurement Programme, which has attracted billions of rand in renewable energy investments over the past decade.
The Thakadu project is privately contracted rather than part of a government procurement round.
Once completed, the solar plant will supply electricity to private customers and will connect to the national grid.
