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- Mining companies are now planning 3900MW worth of renewable energy projects worth R60 billion.
- Industry is calling for government to cut red tape, which is delaying these projects.
- If built, the mining industry power projects could help alleviate substantial pressure on Eskom’s grid.
South African mining companies are planning a whopping 3 900MW in green power projects which can relieve substantial pressure on the Eskom grid. This will, however, require a slashing of red tape, industry has said.
The Minerals Council South Africa said in a statement that its members have 3 900MW of renewable energy projects worth an estimated R60 billion in the pipeline, which, if built, would relieve pressure on Eskom and go a long way towards meeting the industry’s commitment to achieve net zero carbon emissions by 2050.
"Renewable energy projects in the mining sector could go a long way towards easing the pressure on Eskom to the benefit of other industries and the country as a whole," said Minerals Council CEO Roger Baxter.
"These projects must be expedited through a smart tape system. Environmental authorisations take too long and should be materially shortened. In addition, policy issues related to wheeling charges and surplus offtake to other users are required," he added.
Wheeling refers to the use of the transmission system to transport power from one location to another.
Eskom has repeatedly said it needs to add a further 4 000MW to 6 000MW of generation capacity in order to conduct an effective and sustainable reliability maintenance programme that will not disrupt national electricity supply.
The mining industry is involved in various stages of planning up to 3 900MW of installed capacity of solar, wind and battery energy projects. Although the actual output of renewable power is far lower than installed capacity, these projects would still go some way to provide Eskom much-needed supplemental capacity.
Minerals Council member companies have increased the number of renewable energy projects from 1 600MW, as indicated in 2020. The licence-free concession for embedded generation of up to 100MW was a major factor in this increase, and was likely the government’s biggest structural reform in two decades, said Baxter.
Baxter said the provision of emergency tax incentives – such as a s37E income tax writeoff equivalent – would also encourage industry to invest in green power.
Baxter further weighed in on calls for Eskom CEO Andre De Ruyter and the leadership team to resign over increased load shedding.
They "are all doing the right things to fix and maintain Eskom’s assets," he argued.
"Their departure at this critical stage will only exacerbate the problems within Eskom and for the country at a time we can least afford any further setbacks in efforts to restore and stabilise electricity supply," Baxter said.
