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Lyra Energy, a partnership poised to change South Africa’s energy landscape news

Lyra Energy, a partnership poised to change South Africa’s energy landscape

Scatec, Standard Bank and Stanlib have combined their global expertise to establish a new renewable energy platform that offers uniquely low-risk, flexible commercial proposition to the private sector in South Africa. The partners each boast impressive portfolios of successful, operating renewable energy projects across the continent and the globe.

Lyra Energy – a private power solution that offers distributed access to high-quality, affordable and predictable utility-scale renewable energy to medium and large commercial and industrial (C&I) players.

Lyra’s aggregator model will fund, build, own, and operate generation assets. The energy from these projects will be transmitted (or ‘wheeled’) to multiple off-takers, across the national grid. Private sector customers or off-takers can expect increasing savings over time.

Lyra Energy’s objective is to offer private power supply to the previously unserved segment of the commercial and industrial power users in South Africa. More specifically, users with significant electricity demands which in itself does not justify the procurement and implementation of a dedicated large renewable energy project.

This will also provide clients with green energy certifications that are key to achieving individual and global net zero goals.

Each private sector customer will sign a standardised, fixed-tenor Power Purchase Agreement (PPA) with Lyra which has been developed and tailored taking into account market trends and seeks to address traditional risks and frictions associated with bi-lateral PPA’s and wheeling of energy.

“Underpinned by Scatec’s extensive, well-established development pipeline, including market-leading technical and operational services, the Lyra platform is in a strong position to leverage economies of scale, minimise risk, and ensure successful, consistent generation of clean electricity,” says Scatec CEO, Terje Pilskog.

“As with other Scatec projects, the platform’s new utility-scale projects will be supported by an Integrated, business model, with a strong focus on long-term community impact, and sustainable job creation,” adds Terje.

Matching generation from a pool of utility scale renewable energy generation facilities to a collection of commercial and industrial power users, allows Lyra Energy to offer the benefits of large-scale renewable energy projects to smaller scale users.

These benefits serve to mitigate users cost of energy supply relative to the utility as well as additional attributes of environmental credits and recognition of power expenditure in terms of preferential procurement requirements. 

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