Exxaro Resources has officially marked the commercial operation of the Lephalale Solar Project (LSP), a major milestone in the company’s decarbonisation strategy and long-term energy security plans. Developed through its wholly owned renewable energy business, Cennergi, the project is Exxaro’s first utility-scale self-generation renewable energy facility to reach commercial operation.
Located near the Grootegeluk Mine in Lephalale, South Africa, the behind-the-meter solar photovoltaic plant has an installed capacity of 68 MWac. The facility includes 129,024 solar modules spread across 185 hectares and is designed to generate around 176 MWh of renewable electricity annually. The clean energy produced will be supplied directly to the Grootegeluk Mine, reducing its dependence on grid electricity during daylight hours. The project operates under a 25-year power purchase agreement and has also been licensed for future Battery Energy Storage System (BESS) integration, allowing greater flexibility as energy market opportunities develop.
The Lephalale Solar Project achieved its Commercial Operations Date (COD) on April 20, 2026, following a total investment of R1.7 billion. Financial close for the project was reached in June 2023, with construction beginning in August 2023. After completing hot and cold commissioning in November 2025, the facility exported its first renewable electricity to the mine in December 2025 and achieved its full generation capacity of 68 MWac later that month.
Exxaro CEO Ben Magara described the project as an important step in delivering the company’s Sustainable Growth and Impact strategy. He said the successful development, financing, construction and operation of the facility demonstrates Cennergi’s capability to deliver large-scale renewable energy infrastructure while supporting Exxaro’s transition to a lower-carbon business.
The project is expected to reduce Exxaro’s Scope 2 greenhouse gas emissions by approximately 17% while generating annual electricity cost savings of more than R100 million for the Grootegeluk Mine. It will also improve energy resilience, reduce reliance on grid electricity, lower exposure to carbon taxes and provide greater certainty over long-term energy costs.
The official opening ceremony was attended by Dr. Tshitereke Matibe, Member of the Executive Council for Limpopo Economic Development, Environment and Tourism, representing the Premier of Limpopo Province. He said the project highlights the growing role of renewable energy in supporting regional development and South Africa’s energy transition.
The project has also delivered significant socio-economic benefits. During construction, it created 808 jobs, including 557 positions filled by members of the local community, representing 69% local employment. Three people living with disabilities were also employed. Exxaro achieved 41.9% local content spending, supported 13 local subcontractors and invested R1.12 million in community bursaries and workforce training. Training programmes included photovoltaic module installation, firefighting, first aid, incident investigation, hand tool use and manual handling, providing participants with valuable skills for future employment opportunities.
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