Lyra Energy, Scatec’s joint venture in South Africa, has reached financial close and started building the 255 MW Thakadu solar power plant. This is a big step forward for the country’s renewable energy development. To make sure that construction and delivery go smoothly, the project will be built in two stages.
The first phase of work has begun, and the second phase is expected to begin in the second half of 2026. The Thakadu solar project is expected to add a lot of renewable energy capacity and help the country move toward cleaner power generation once it is finished.
“This marks an important milestone for Lyra Energy and the Thakadu project. With contracted private sector offtake in place and financing secured, the project is well positioned for construction and delivery,” said Terje Pilskog, CEO of Scatec.
Project Investment and Financing Structure
The project is expected to cost ZAR 4 billion (about USD 240 million) in total capital expenditures. The project will be paid for with a mix of non-recourse project debt and equity contributions from the owners. The goal is to have a leverage ratio of about 80 percent.
Standard Bank of South Africa is acting as the senior lender, providing the primary debt financing required to support the construction and development of the solar facility.
Key Financial Details
- Total project investment: ZAR 4 billion (USD 240 million)
- Financing structure: Non-recourse project debt and equity
- Target leverage: 80% debt financing
- Senior lender: Standard Bank of South Africa
Scatec to Lead Construction and Operations
Scatec will play a central role in the project’s development and long-term management. The company will deliver Engineering, Procurement and Construction (EPC) services along with Asset Management (AM) and Operations and Maintenance (O&M) for the solar power plant.
The EPC scope handled by Scatec represents around 80 percent of the project’s total capital expenditure, covering major elements such as solar module installation, mounting systems, electrical infrastructure, and grid connection facilities.
Supporting South Africa’s Energy Transition
The Thakadu solar plant will sell clean electricity to businesses through contracts called offtake agreements once it is up and running. The project is expected to make energy more reliable and help South Africa move to cleaner energy sources.
The project, which is now being built with financing in place, shows how private sector investment is playing a bigger and bigger role in expanding renewable energy infrastructure in the area.
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