President Cyril Ramaphosa this week paid tribute to the mining sector for making efforts in generating its own electricity, while promising to strengthen SA’s renewable energy programme.
Ramaphosa said government’s renewable energy efforts are being strengthened and it is facilitating investment in new generation capacity by private producers.
The president shared his energy plans with participants at the Investing in African Mining Indaba, being held in Cape Town.
He said some of the measures government is implementing to facilitate investments include removing the licensing threshold for embedded generation projects.
SA is experiencing unprecedented power cuts, and has witnessed increased adoption of renewables as a viable option to overcome electricity challenges.
In his speech, Ramaphosa promised action in dealing with power, while acknowledging the role the mining community is playing in easing the energy crisis.
“We are facilitating investment in new generation capacity by private producers by, among other things, removing the licensing threshold for embedded generation projects.”
The president noted the mining sector has been making significant moves towards generating its own electricity.
To this end, Ramaphosa said, according to the Minerals Council of South Africa, since the licensing threshold was lifted, approximately 89 embedded power generation projects have been developed, with a focus on renewable energy solutions like solar, wind and battery storage.
“Not only will these projects support mining operations themselves and bring down operating costs, but they will also add much-needed power to the country’s overall supply, and support SA’s decarbonisation process.
“Mining is leading the way in developing other new energy technologies. Last year, I had the privilege to attend the launch by Anglo American of the world’s largest hydrogen-powered mine haul truck.
“Anglo is developing an entire hydrogen ecosystem to support its local operations, and the launch of the NUGen truck was the first project for the Green Hydrogen Valley we hope to develop from Limpopo to KwaZulu-Natal.”
Commenting on the speech, Webber Wentzel’s mining team says it believes Ramaphosa is correct to prioritise electricity security because of the huge impact the electricity crisis is having on the country and, in particular, the mining sector.
“We support these measures, especially the president's recognition of SA's abundant renewable energy resources, but would recommend the Presidency also urgently apply its mind to unblocking grid constraints,” says the law firm.
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