Financial close reached for Lephalale Solar Energy Project in SA

A financial close has been reached for the Lephalale Solar Energy Project in South Africa. Cennergi Holdings made the announcement and said the solar project will located in the Waterberg District of South Africa’s Limpopo Province

The project involves the construction of a 68 MW solar energy facility on Exxaro-owned land adjacent to the Grootegeluk mine operations. It will span across a 236-hectare area and is strategically situated near the town of Marapong and Eskom’s Matimba power station. The construction of the solar facility will be carried out through an engineering, procurement, and construction (EPC) contract, ensuring its successful realization.

The operation and maintenance (O&M) of the solar facility will be entrusted to an experienced operator. The solar plant will supply renewable energy to the mine through a power purchase agreement (PPA) for a period of 25 years.

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Impact strategy

Financing for the Lephalale Solar Energy Project will come from limited recourse project finance debt from lenders, as well as equity investment from Cennergi Holdings, its sole shareholder. The construction is expected to take approximately 19 months.

The project aligns with Exxaro’s Sustainable Growth and Impact strategy, aiming to achieve energy cost savings, increased energy security, and decarbonization benefits for the Grootegeluk mine. Additionally, the project aims to promote sustainable development and enhance socioeconomic benefits for local communities.

Both Leon Groenewald, MD Energy at Exxaro, and CEO Dr. Nombasa Tsengwa expressed their excitement about the project, emphasizing its significance in supporting business sustainability and the transition to a greener future. They believe that the Lephalale Solar Project represents a significant milestone in South Africa’s renewable energy landscape and demonstrates the potential of clean energy to drive economic growth and reduce carbon emissions.