SOUTH AFRICA I MINING
to construct a 5-7MW solar park in Free State province. It will start being built later in 2014. The company also intends to erect a 18MW solar plant in Mareetsane, North West province, to boost supplies to the Eskom Grid. It is anticipated that capacity should eventually climb to 40MW. According to Melanie Naidoo-Vermaak, Harmony’s Environmental Executive, the goal is to alleviate pressure on peak energy usage.
Meanwhile, US solar company First Solar has said that it is in advanced negotiations with African mining firms over their solar products, although the firm is yet to reveal further details.
Solar PV and the bottom line The potential to save money is one of the key arguments in favour of PV solar in the South African mining industry. Reducing expenditure on energy was a key goal for CRONIMET, as the company was getting through almost two million litres of diesel every year before turning to PV.
After it set up its hybrid PV diesel facility in 2012, CRONIMET claims to have saved half a million dollars. “For us it was a pure economic decision and we set out in 2012 to prove that it was both economically and technically feasible,” says Armstrong.
John Eccles, First Solar’s fuel replacement solutions director, also argues that one of his company’s 10MW solar-diesel facilities could achieve over 84 million litres of fuel savings in 25 years in South Africa.
High electricity prices and power insecurity have had a direct effect on the profitability of mining firms in South Africa. In 2008, many mines, including those owned by Anglo American, suspended their operations due to an electricity deficit, which Eskom has since endeavoured to tackle through a project following through to 2017 that has seen electricity prices rise by 25% annually over the last six years.
South Africa’s Eskom has been given permission to increase electricity prices by an average of eight percent a year for the next five years.
“A mining manager really has to table a good excuse for the shareholders when they explain that they would rather pay more cash to diesel suppliers than higher dividends,” says Armstrong from CRONIMET. “The potential for integrators and IPPs such as ourselves is immense,” he also says, adding that, if electricity costs continue to increase then PV offers a further financial advantage: “When procuring PV on balance sheet, you are effectively acquiring 20 to 25 years of daytime
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www.solar-international.net I Issue IV 2014
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