• Corporate demand for renewable electricity in South Africa continues to support new power generation capacity.

• Norwegian developer Scatec reached financial close and launched construction of the 255-MW Thakadu Solar Project.

• Direct renewable power contracts between independent producers and corporate buyers are accelerating the country’s energy transition.

In a statement released on March 6, Norwegian renewable energy developer Scatec confirmed this trend. The company announced that its joint platform Lyra Energy had reached financial close and had started construction of the Thakadu Solar Project, a solar plant with a capacity of 255 megawatts.

The project will proceed in two phases and will rely on power purchase agreements signed with commercial and industrial clients.

Construction of the first phase has already begun. Developers plan to start construction of the second phase in the second half of 2026. The project partners expect commercial operations for the first phase in the first half of 2027.

Developers estimate the total investment cost at about 4 billion South African rand, or roughly $240 million.

The financing structure combines non-recourse project debt with equity contributions from shareholders. Standard Bank of South Africa acts as the lead lender.

Meanwhile, Scatec will deliver engineering, procurement and construction services. The company will also manage assets and operate and maintain the facility.

“This is an important milestone for Lyra Energy and the Thakadu project. With the power purchase agreement with the private sector in place and the financing secured, the project is well positioned for construction and delivery,” said Terje Pilskog, chief executive of Scatec.

This momentum is spreading across several sectors of the South African economy.

Earlier in March, South African developer Anthem Renewable Energy announced financial close for the Notsi Solar Project, a 475-MW solar development targeting the commercial and industrial market through a wheeling mechanism.

The wheeling model allows companies to transmit renewable electricity through the national grid.

Several companies have already adopted this approach. Firms such as Redefine Properties and mining group Glencore have signed long-term renewable electricity supply agreements delivered through the grid operated by Eskom.

These agreements illustrate the growing use of direct contracts between independent power producers and large electricity consumers across sectors such as mining and services.

This model is creating a new dynamic in the South African energy market. Corporate procurement of renewable electricity is directly accelerating the country’s energy transition.

However, the public power system still relies heavily on fossil fuels. Coal continues to dominate electricity generation in the national grid.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange J.A de Berry Quenum