Today, Exxaro Resources, through its wholly owned renewable energy business Cennergi, celebrated the Commercial Operations Date (COD) milestone of the Lephalale Solar Project (LSP), marking a significant achievement for Exxaro's decarbonisation journey and demonstrating the successful execution of its Sustainable Growth and Impact strategy.
Located near Exxaro's Grootegeluk Mine in Lephalale, the plant is a behind-the-meter solar photovoltaic facility that comprises 129,024 solar modules installed across 185 hectares, delivering 68 Megawatts of alternating current (MWac) at the point of connection. The facility is designed to generate approximately 176 MWh of renewable energy annually to supply renewable power directly to Grootegeluk Mine and significantly reduce reliance on grid-supplied electricity during daylight operating hours. The project is underpinned by a 25 year power purchase agreement with Grootegeluk and is licensed for future Battery Energy Storage System integration, positioning LSP to deliver flexible dispatchable renewable energy as market opportunities evolve.
Having achieved its Commercial Operations Date on 20 April 2026, the Lephalale Solar Project represents Exxaro's first utility-scale, self-generation renewable energy asset to reach commercial operation. The R1.7 billion investment underscores our commitment to building a diversified, lower-carbon business while strengthening energy security for its operations and contributing meaningfully to South Africa's energy transition.
The project reached financial close on 29 June 2023, with the Notice to Proceed issued in August 2023, marking the commencement of construction. Following the successful completion of hot and cold commissioning in November 2025, the first renewable electricity was exported to Grootegeluk Mine on 11 December 2025. Just over a week later, on 19 December 2025, the facility achieved its full generation capacity of 68 MWac, paving the way for the Commercial Operations Date in April 2026.
Speaking at the celebration, Exxaro CEO Ben Magara said, "The official opening of the Lephalale Solar Project is far more than the completion of a renewable energy facility; it marks another significant milestone in the delivery of our sustainable growth and impact strategy. As Exxaro’s first utility scale, self-generation renewable energy asset to reach commercial operation, it demonstrates our ability to successfully develop, finance, construct and operate large scale renewable energy infrastructure through our growing renewable energy business, Cennergi.”
The LSP is the realisation of our decarbonisation journey where we are strengthening our energy security, creating shared value for communities and supporting the country's just energy transition. By reducing electricity costs by over R100 million annually, while reducing Scope 2 emissions by approximately 17%, the project demonstrates that decarbonisation is not only good for the environment, but it also makes sound business sense.
Additionally, this project demonstrates how disciplined capital allocation, technical excellence and purposeful partnerships can create lasting value for our business, our stakeholders and South Africa. As we continue diversifying our portfolio, we are building a business that is more resilient, more sustainable and better positioned for the future.
The facility is expected to reduce Exxaro's Scope 2 emissions by approximately 17%, while delivering strategic operational benefits through greater energy resilience, decentralised power generation, reduced exposure to carbon taxes and long-term electricity cost certainly. The plant is also expected to generate cost savings of approximately R100 million per annum for Grootegeluk Mine.
Dr. Tshitereke Matibe, Member of Executive Council for Limpopo Economic Development, Environment and Tourism, attended the official opening on behalf of the Premier and highlighted the strategic importance of Exxaro’s investment in renewable energy: “As the leadership of the Limpopo Province, we are excited about the positive development of the Lephalale Solar Project, a beacon of the transformative potential of renewable energy. The natural resources endowment of the Limpopo has facilitated historical and future growth and development for South Africa as a whole and I am excited to see this endowment extend to solar energy and benefit more people.”
The successful delivery of the Lephalale Solar Project further demonstrates Cennergi’s capability to originate, finance, construct and operate large-scale renewable energy infrastructure. It also strengthens the organisation's in-house expertise across project development, construction management, project finance and asset management, creating a scalable and bankable model for future renewable energy investments as the renewable energy business continues to grow.
Beyond its environmental contribution, the project has generated meaningful socio-economic value for the Lephalale region. During construction, the project created 808 employment opportunities, with 557 host community members employed, representing 69% local recruitment, including three people living with disabilities from local communities. The project also prioritised local economic participation, achieving 41.9% of the local content spend and supporting 13 local subcontractors, helping strengthen the regional supplier ecosystem.
Recognising that a just transition depends on building lasting capabilities, Exxaro invested R1.12 million in community bursaries and worker training. Local workers received extensive on-the-job training during photovoltaic module installation, while additional construction-related programmes, including Fire Fighting, First Aid, Incident Investigation, Hand Tools and Manual Handling training, equipped participants with transferable skills that will enhance future employability beyond the life of the project.
As Exxaro continues to grow its renewable energy solutions business, the Lephalale Solar Project stands as a landmark achievement, illustrating that environmental stewardship, commercial performance and inclusive socio-economic development can be successfully delivered through disciplined execution and long-term strategic investment.