Scatec’s Thakadu solar project gets a $16m risk buffer by Norway

Norway will provide a guarantee of up to NOK 150 million (USD 16.08 million) to support revenue security for the planned 255 MW Thakadu solar project in South Africa, helping reduce the risk faced by investors in the renewable energy development.

The guarantee will be provided to Lyra Energy, an electricity sales platform jointly owned by Scatec, Standard Bank and Stanlib. It will cover the risk of companies buying electricity from the solar plant failing to make their payments.

The agreement, announced on September 14, 2026, is the first involving a private company under Norway's renewable energy guarantee mechanism. The NOK 5 billion (USD 536 million) programme is designed to encourage greater private investment in renewable energy projects in developing countries by taking on part of the risks associated with such investments.

Guarantee targets payment risk

Revenue and payment uncertainty remains a challenge for renewable energy projects in emerging and developing economies. By providing a guarantee against potential non-payment, the Norwegian mechanism aims to make projects more attractive to private investors and lenders.

The International Energy Agency has identified guarantees as an instrument that can help reduce payment and revenue risks and facilitate additional investment in renewable energy.

The Thakadu project had already secured key commercial and financing milestones before the guarantee was announced.

In February, Lyra Energy signed power purchase agreements with three commercial and industrial customers, covering a substantial portion of the solar plant's planned output.

Scatec subsequently announced financial close and the start of construction in March.

Thakadu represents USD 245 million investment

The solar project represents an investment of approximately ZAR 4 billion (USD 246 million).

The project is being financed through a combination of non-recourse debt and equity, with debt expected to account for around 80 per cent of the financing structure. Standard Bank is the senior lender.

The first phase of the Thakadu project is scheduled to begin commercial operations in the first half of 2027.

For Lyra Energy and its partners, the Norwegian guarantee provides additional protection against payment-related risks as the project moves into operation, while for South Africa it supports the development of additional renewable generation capacity.