Norwegian renewable energy company Scatec is expanding its footprint in South Africa’s power market with a 255 MW solar project, the firm announced on Monday, February 16, 2026.
Through its joint platform Lyra Energy, Scatec has signed private power purchase agreements (PPAs) with three commercial and industrial clients, marking its operational entry into South Africa’s wheeling market, where electricity is supplied directly from generators to private users rather than through the national grid.
“The signing of PPAs with private sector clients for the Thakadu project reflects growing demand among companies for clean, reliable, and cost-competitive electricity,” said Scatec CEO Terje Pilskog.
The Thakadu solar plant will be built in two phases. Financial close and construction for the first phase are expected in the first quarter of 2026, with the second phase scheduled later in the year. Investment details, financing structure, and engineering, procurement, and construction (EPC) scope will be confirmed at financial close, according to the company.
Scatec’s move into the private sector complements its existing projects under South Africa’s public renewable energy procurement programs. It also follows momentum from 2024, when Lyra Energy was launched, and July 2025, when its trading arm, Lyra Energy Trading, received an electricity trading license from South Africa’s regulator, NERSA. The license allows Lyra to operate in the wholesale market and sign supply agreements with commercial and industrial clients backed by large-scale generation assets.
The expansion forms part of Scatec’s broader strategy to recycle capital from older assets, as outlined during the partial sale of stakes in the Kalkbult, Linde, and Dreunberg plants in August 2024. Lyra Energy is intended as the vehicle for the private segment, alongside other initiatives such as the Grootfontein project and the Mogobe storage project.
The Thakadu project highlights South Africa’s increasing appetite for private clean energy solutions, driven by companies seeking to meet sustainability targets while ensuring reliable power amid intermittent grid supply. Analysts say such deals signal a shift toward corporate PPAs as an alternative financing model for renewable projects in the country.
Scatec, a Norwegian renewable energy developer, has been active across Africa for over a decade, developing solar and hybrid energy projects in countries including South Africa, Egypt, and Uganda. The company focuses on large-scale utility projects and, more recently, private-sector power supply through corporate power purchase agreements (PPAs).
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South Africa’s solar sector
South Africa’s solar market has expanded rapidly under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which has attracted both local and international investors. While public procurement projects have dominated, there is growing demand from commercial and industrial clients for direct electricity supply via the wheeling model, which allows energy generated by private plants to be delivered directly to users over the grid.
In July 2025, Scatec’s trading arm, Lyra Energy Trading, obtained a license from NERSA to operate in the wholesale market, enabling it to sign contracts with private clients backed by large-scale generation assets. Analysts note that corporate PPAs provide predictable revenue streams for developers and offer businesses sustainable, cost-competitive electricity, making the model increasingly attractive amid South Africa’s ongoing energy challenges.
The 255 MW Thakadu solar plant represents Scatec’s first foray into this private segment in South Africa, complementing earlier public-sector projects and planned storage initiatives, including the Grootfontein and Mogobe projects.
