Lyra Energy has started building the Thakadu solar power plant in South Africa. The project is worth about USD 238 million and will have a capacity of 255 megawatts. It is located between the Free State and North West provinces.

The project will be built in two phases. Part of the electricity output has already been sold to three private buyers through power purchase agreements. These agreements allow companies to buy electricity directly from the plant.

The first phase is expected to start operating in the first half of 2027. Construction of the second phase will begin in the second half of 2026.

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The project will be funded through equity and project debt, with 80 per cent target leverage, Standard Bank of South Africa being the main lender.

Lyra Energy is responsible for developing, building and operating the project. This means the company manages the full process from start to finish.

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Scatec will handle construction and later manage operations and maintenance. The company has experience with large solar projects in Africa, like the Kenhardt Solar Power Complex.

South Africa has faced ongoing electricity shortages due to ageing coal plants run by Eskom. These shortages have caused frequent power cuts. “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,” Eben De Vos, the head of Lyra Energy, said. 

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To address this problem, there is a growing use of private power projects. Government policies have also encouraged investment in renewable energy.

The Thakadu project is privately funded and not part of a government programme. Once completed, it will supply electricity to private users and connect to the national grid.