Renewable Energy in the Minerals Sector: Assessing Opportunities for Africa

The document examines the transition of the mining sector from diesel and grid power to renewable energy (RE), primarily solar PV and wind. It argues that while RE has high initial capital expenditure, it offers lower long-term operating costs and provides a hedge against volatile fuel prices. The paper highlights the role of hybrid systems and energy storage in overcoming the intermittency of RE to meet the constant baseload demands of mines. It also explores the potential for portable RE systems for exploration sites and the use of rehabilitated mine land for utility-scale RE generation.

• Renewable energy (RE) is increasingly affordable for the mining sector, shifting the financial model from low capital expenditure (capex) and high operating expenditure (opex) to high capex and low opex. While RE requires 10–20 years to achieve a lower total cost of ownership compared to traditional sources, it protects remote mines from fuel price volatility.
• Solar PV and wind are the dominant RE technologies in mining, with solar PV accounting for nearly 86% of installed capacity across 51 reviewed projects. Most installations are found at gold, copper, and iron ore mines, with Australia and Chile leading in geographic adoption.
• The intermittent nature of solar and wind makes them unsuitable as stand-alone power sources for the 24-hour baseload demand of mines. To address this, the sector uses hybrid systems (combining RE with diesel or grid) and energy storage, such as Battery Energy Storage Systems (BESS), to stabilize supply.
• In Africa, solar is considered the most viable RE source, though hydropower is used in countries with favorable hydrology like the Democratic Republic of Congo. Geothermal energy remains underutilized despite high potential in East Africa's Rift Valley (17GW) due to high capex and long installation times.
• Technological advances in containerization and mounting systems have made RE installations portable. This allows companies to move PV systems between exploration sites or to new locations after a mine closes, mitigating the risk associated with the long lifespan of RE equipment relative to short-life mines.
• Rehabilitated mine land offers significant potential for post-mining RE use, including solar, wind, and biofuel farms, as these areas are often unsuitable for agriculture. In South Africa, deep-level gold mines are being explored for use in underground pumped hydroelectric energy storage.

APA

LIMPITLAW, D. (2021). Renewable Energy in the Minerals Sector: Assessing Opportunities for Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2021/07/Occasional-Paper-326-limpitlaw.pdf

Chicago

LIMPITLAW, DANIEL. Renewable Energy in the Minerals Sector: Assessing Opportunities for Africa. South African Institute of International Affairs, 2021. https://saiia.org.za/wp-content/uploads/2021/07/Occasional-Paper-326-limpitlaw.pdf.

Wikipedia

{{cite report |last1=LIMPITLAW |first1=DANIEL |title=Renewable Energy in the Minerals Sector: Assessing Opportunities for Africa |publisher=South African Institute of International Affairs |date=June 2021 |url=https://saiia.org.za/wp-content/uploads/2021/07/Occasional-Paper-326-limpitlaw.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{limpitlaw2021renewable, author = {LIMPITLAW, DANIEL}, title = {{Renewable Energy in the Minerals Sector: Assessing Opportunities for Africa}}, institution = {South African Institute of International Affairs}, year = {2021}, month = jun, url = {https://saiia.org.za/wp-content/uploads/2021/07/Occasional-Paper-326-limpitlaw.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }