Mining company Exxaro Resources recently announced the official launch of the first large-scale solar power plant in South Africa that provides electricity exclusively to a coal mine.

The R1.7-billion Lephalale Solar Project (LSP) in western Limpopo achieved commercial operation on 20 April 2026, marking the start of its 25-year power purchase agreement with Exxaro’s Grootegeluk Mine.

Among the mine’s customers is Eskom’s Medupi plant, one of the power utility’s two largest coal-fired power stations, located less than 7km away as the crow flies.

Developed by Cennergi, construction on LSP began in August 2023. During the peak of construction, the project created 808 jobs, 557 of which came from the surrounding community.

“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,” Cennergi said.

The plant was completed in November 2025, when hot and cold commissioning commenced. It first began feeding electricity to the mine on 11 December 2025.

By 19 December 2025, LSP achieved its full generating capacity, which cleared the way towards commercial operations.

The ground-mounted solar power plant operates “behind-the-meter,” meaning its electricity is only for the mine’s use and does not feed into the grid.

It consists of 129,024 solar modules across 185 hectares with a peak capacity of 68MW of alternating current, sufficient to supply about 176GWh per year.

The development is a blow for Eskom, as the mine will require significantly less electricity from the power utility.

Exxaro said the plant will reduce the mine’s electricity costs by more than R100 million per year and cut its Scope 2 emissions, referring to indirect greenhouse emissions from purchased energy, by 17%.

While the plant is currently only supplying electricity during the day, Exxaro plans to add a battery energy storage system (BESS) to supplement power usage when the sun is not shining.

Plummeting lithium-ion prices have made new utility-scale solar and BESS systems cheaper to construct than new coal or gas power, when using the levelised cost of electricity over the plant’s lifespan.

Mines cutting their Eskom bills

Service road through the Exxaro LSP near Lephalale in Limpopo.
Exxaro is just one among a plethora of major mining outfits that have reduced their reliance on Eskom’s grid or plan to do so in the future.

African Rainbow Minerals, Anglo American, Gold Fields, Sibanye-Stillwater, Harmony Gold, Impala Platinum, Northam Platinum, Pan African Resources, and Seriti Resources are just some of the others.

While reducing emissions is one benefit, the true reason is cost. Over the last two decades, electricity tariffs have surged by over 1,100%.

Mines are power-intensive users, so these tariffs have had a major impact on their profitability. Self-generation and batteries also support greater energy security.

While mines have long had extensive backup power in the form of large-scale fuel-powered generators, these are expensive to run.

Many vehicles and cordless machinery also rely on fuel, a fact that was recently highlighted by the industry’s surging operating costs due to the Middle East crisis.

Eskom has not had much to say publicly about some of its most valuable customers, but it has been accused of quietly delaying their efforts to reduce reliance on the grid.

The Johannesburg High Court recently delivered a scathing criticism of Eskom’s procedures and delays in approving Sibanye Gold’s construction of electric lines over one of the power utility’s servitudes.

The lines were necessary to connect one of the company’s mines with a 50MW solar power plant that would also reduce its reliance on Eskom’s electricity.

Sibanye’s legal team accused Eskom of using a bureaucratic maze with shifting criteria and unsubstantiated demands to delay the project on the basis of protecting the grid.

The court found that Eskom’s arguments about the risks the project posed to its network were unsubstantiated, inconsistent, and disjointed.

Energy analyst Chris Yelland said the power utility’s behaviour in this particular matter was part of a broader pattern of anti-competitive conduct.

He cited several other examples where Eskom had appeared more aligned with its self-protection than system governance, including:

Eskom’s review applications against NERSA granting of electricity trading licences.
Introducing uncertainty in the emergence of a competitive trading environment.
Assurances about reform at odds with continued legal challenges behind closed doors.
Arduous registration and compliance demands for residential solar PV and battery storage.
Yelland said these episodes portrayed an incumbent utility more comfortable in courtrooms than in competitive markets, and more interested in preserving sales volumes than aligning with national policy.

Source: https://mybroadband.co.za/news/energy/659076-first-of-its-kind-solar-power-plant-in-south-africa-built-right-under-eskoms-nose.html