Scatec’s Lyra Energy Begins Construction Of 255 MW Thakadu Solar Power Plant In South Africa

Scatec’s joint venture in South Africa, Lyra Energy, has successfully reached financial close and has now begun construction of the 255 MW Thakadu solar power plant. This development represents an important step forward for renewable energy expansion in the region. The project will be developed in two phases to ensure a structured and efficient construction process. Work on the first phase has already started, while construction of the second phase is expected to begin in the second half of 2026. The Thakadu solar power plant is expected to contribute significantly to South Africa’s renewable energy capacity once completed.

By delivering large-scale solar power, the project will help strengthen the country’s energy supply while supporting the transition toward cleaner and more sustainable power generation. According to Scatec CEO Terje Pilskog, reaching financial close is a major milestone for both Lyra Energy and the Thakadu project. He noted that the project is now well positioned to move ahead with construction because it has secured private sector offtake agreements along with the necessary project financing. These agreements ensure that the electricity generated by the solar plant will be purchased by private sector customers, creating a stable revenue structure for the project.

The total capital expenditure for the Thakadu solar power plant is estimated at approximately ZAR 4 billion, which is equivalent to around USD 240 million. The project will be financed through a combination of non-recourse project debt and equity contributions from the project owners. The financing structure aims for a leverage level of about 80 percent, meaning that most of the project funding will come through debt financing. Standard Bank of South Africa is serving as the senior lender for the project, providing the primary debt financing needed to support construction and development.

Scatec will play a major role in the project’s development and long-term operation. The company will be responsible for providing Engineering, Procurement, and Construction services, which include designing the solar facility, sourcing equipment, and managing the overall construction process. In addition to EPC services, Scatec will also handle Asset Management as well as Operations and Maintenance services once the plant becomes operational. This integrated approach allows the company to oversee the project from construction through long-term performance management.

The EPC scope handled by Scatec represents approximately 80 percent of the project’s total capital expenditure. This includes major components such as the installation of solar modules, mounting structures, electrical infrastructure, and grid connection systems required to ensure reliable power generation. The project’s development schedule is structured in phases to ensure smooth execution. Construction of the first phase has already begun and will move forward over the next several months. The second phase is scheduled to begin construction during the second half of 2026. Once the initial phase is completed and commissioned, the first part of the solar facility is expected to begin commercial operations in the first half of 2027.

Once fully operational, the Thakadu solar power plant will provide a significant source of renewable electricity to support South Africa’s energy needs. The project reflects the growing role of private sector participation in renewable energy development and highlights how large-scale solar investments can help improve energy reliability while supporting environmental goals. Overall, the Thakadu solar project represents a major investment in South Africa’s renewable energy infrastructure. With financing secured, private offtake agreements in place, and construction underway, the project is moving steadily toward delivering clean solar power while contributing to the country’s broader energy transition.