Exxaro Resources, through its wholly owned renewable energy subsidiary Cennergi, recently announced commercial operations for the 68MWac Lephalale Solar Project (LSP). The facility is now supplying renewable electricity to the company’s Grootegeluk coal mine in Lephalale, in the Limpopo province of South Africa.
The solar facility is a behind-the-meter solar photovoltaic power plant that comprises 129,024 solar modules installed across 185 hectares. 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. Exxaro revealed that their project is licensed for future Battery Energy Storage System integration, positioning LSP to deliver flexible dispatchable renewable energy as market opportunities evolve.
“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,” said Exxaro CEO Ben Magara.
“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,” added Magara.
The LSP renewable energy project was built for an estimated investment of R1.7 billion. Exxaro says the investment underscores its 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 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.
Additionally, the solar facility is expected to generate cost savings of approximately R100 million per annum for Grootegeluk Mine.
Beyond its environmental contribution, the project is generating 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.
Exxaro also 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.
