South African mining renewable energy transition

South African mining companies are accelerating a transition toward renewable energy to reduce reliance on the state utility Eskom and lower operational costs. Major firms, including Anglo American and Sibanye Stillwater, are investing in wind and solar power to meet decarbonization targets and mitigate rising electricity tariffs.

Anglo American, through its Envusa Energy joint venture, currently generates 520 MW of wind and solar power—covering 30% of its mining energy consumption—with a goal to reach 3,000 MW by 2030. Sibanye Stillwater has contracted 835 MW of renewable capacity, aiming for renewables to cover approximately 64% of its South African energy demand by the end of 2028.

Industry experts indicate that wind and solar power can be 20% to 30% cheaper than Eskom electricity. This shift is supported by the formalization of electricity wheeling, which allows independent power producers to supply electricity to third parties via the national grid. Long-term energy sustainability in the region depends on the integration of approximately 20 gigawatts of new generation projects currently in the pipeline and the decommissioning of aging coal plants.