en.Wedoany.com Reported - Diversified resources group Exxaro Resources, through its wholly-owned renewable energy subsidiary Cennergi, has announced the Commercial Operation Date (COD) for the Lephalale Solar Project (LSP). This project is one of the largest behind-the-meter renewable energy projects in South Africa.
Located near Exxaro's Grootegeluk coal mine in the Lephalale area of Limpopo Province, the solar photovoltaic facility supplies renewable energy directly to the mine via the mine's main substation. Exxaro stated on July 15 that this marks significant progress in the company's decarbonization efforts and reflects the implementation of its sustainable growth and impact strategy.
The facility, with a total investment of ZAR 1.7 billion, deploys 129,024 solar modules across 185 hectares, providing 68 megawatts of alternating current (MWac) at the point of interconnection. Under a 25-year Power Purchase Agreement, the facility is designed to supply approximately 176 gigawatt-hours of clean energy annually to the Grootegeluk coal mine.
The project site is located approximately 2 kilometers from Marapong and about 4 kilometers from state-owned power utility Eskom's Matimba power station. The facility is expected to save the Grootegeluk coal mine approximately ZAR 100 million in electricity costs annually and reduce the company's Scope 2 emissions by about 17%. Additionally, the project brings strategic operational benefits by enhancing energy resilience, diversifying power generation, reducing carbon tax exposure, and locking in long-term electricity costs. The company stated that the site has been permitted for future integration of a battery energy storage system to store surplus energy and optimize energy usage.
Exxaro CEO Ben Magara stated during a celebration event on July 15 that Exxaro has a clear growth strategy, with the sustainable growth and impact strategy aimed at ensuring the company's impact extends beyond mining or energy production operations, accelerating its journey to becoming a leading diversified natural resources company in South Africa, Africa, and beyond.
Exxaro noted that the Lephalale Solar Project achieved its Commercial Operation Date on April 20, making it the company's first utility-scale self-generation renewable energy asset to reach commercial operation. The project reached financial close in June 2023, received a notice to proceed in August 2023, and commenced construction. After successfully completing hot and cold commissioning in November 2025, the first renewable energy power was delivered to the Grootegeluk coal mine on December 11, 2025. Just over a week later, on December 19, 2025, the facility reached its full generation capacity of 68 MWac, laying the foundation for the subsequent Commercial Operation Date.
During construction, the project created 808 jobs, with 557 employees from host communities, achieving a local hiring rate of 69%, including three persons with disabilities from local communities. The project prioritized local economic participation, achieving 41.9% local content expenditure and supporting 13 local subcontractors, contributing to strengthening the regional supplier ecosystem. Exxaro stated that the company invested ZAR 1.12 million in community scholarships and worker training. Local workers received extensive on-the-job training during solar module installation, along with other construction-related training in firefighting, first aid, accident investigation, hand tools, and manual handling, providing participants with transferable skills that enhance their employability beyond the project's lifecycle.
Magara stated that the project is not only about reducing Exxaro's emissions or costs but also about creating jobs, promoting economic growth, and ensuring through education and enterprise development that the company contributes to poverty reduction.
