South Africa’s major mining companies are accelerating investment in renewable electricity as energy costs, grid reliability and carbon exposure increasingly become factors in the competitiveness of energy-intensive operations. Anglo American, Sibanye-Stillwater and Exxaro are pursuing different approaches, ranging from long-term power purchase agreements and electricity wheeling to directly owned solar generation, as miners seek to reduce their dependence on Eskom while securing more predictable electricity costs and lowering operational emissions.
The shift is taking place against a changing electricity market. Eskom remains central to South Africa’s power system and still supplies more than 80% of the country’s electricity, much of it from an ageing coal fleet. Yet the utility has made significant progress in restoring reliability. According to Reuters, Eskom reported only four days of load shedding in the 2026 financial year, compared with 329 days in 2024, while its annual profit more than doubled to R30.3 billion. The improvement has not removed the economic pressures facing large electricity users, however, with tariffs rising 12.7% during the year and Eskom warning about growing municipal debt and the need for continued investment in its network.
For mining companies, the issue is therefore no longer simply whether electricity is available. The cost, carbon intensity and long-term reliability of that electricity are increasingly tied to investment decisions, production economics and access to international markets. South Africa’s mining industry remains an important contributor to exports, employment and industrial activity, meaning changes in its energy model have implications beyond individual corporate sustainability targets.
Anglo American has built one of the more substantial private renewable energy platforms through Envusa Energy, its joint venture with EDF power solutions. The platform is developing wind and solar projects that can supply mines and other industrial customers through the national electricity grid. Its Koruson 2 cluster, comprising the 240 MW Mooi Plaats solar project and the 140 MW Umsobomvu and 140 MW Hartebeesthoek wind projects, has a combined capacity of 520 MW.
The model is significant because it separates electricity generation from the physical location of the mine. Renewable electricity generated in the Northern or Eastern Cape can enter the transmission system and be wheeled to contracted industrial users elsewhere. This allows mining companies to secure renewable supply without having to construct generation facilities at every mine.
Koruson 2 is also designed around long-term commercial arrangements. Envusa says its offtakers have committed to 20-year agreements, while the wider platform is targeting between 3 GW and 5 GW of renewable energy capacity by 2030. The cluster is expected to reduce carbon dioxide emissions by about 2.2 million tonnes a year while generating electricity cost savings for participating mining operations.
The significance of the approach extends beyond Anglo American. It demonstrates how large industrial consumers can become anchor customers for new renewable generation, improving the bankability of projects while creating additional demand for transmission infrastructure and electricity-trading arrangements. The model also allows private capital to enter parts of the electricity system traditionally dominated by the state utility.
Sibanye-Stillwater is following a different route, relying more heavily on power purchase agreements rather than developing all generation assets itself. The company has established a portfolio of private-sector renewable energy projects and says it has a 725 MW renewable energy programme in South Africa. In February 2026, it concluded a 10-year agreement with energy trader NOA for 138 MW a year of renewable electricity from an aggregated portfolio of solar and wind generation facilities.
The company has also announced an additional 220 MW power purchase agreement, reinforcing a strategy in which renewable electricity is procured through independent producers rather than requiring Sibanye to own every generating asset. The arrangement allows the miner to diversify its electricity supply while retaining access to the grid when renewable generation is insufficient.
That distinction is important because mines operate around the clock. Solar generation falls after sunset and wind output varies according to weather conditions, while underground mines, processing plants, ventilation systems and pumping equipment can require continuous electricity. Battery storage can help manage these fluctuations, but large-scale storage capable of supporting industrial loads over extended periods remains an additional capital requirement.
As a result, the transition is unlikely to mean an immediate end to Eskom dependence. Instead, renewable power is being added around the existing electricity system, with the grid continuing to provide balancing capacity and backup. This makes the expansion of transmission infrastructure and electricity-market reforms as important as the construction of new wind and solar plants.
Exxaro is pursuing a more vertically integrated approach through Cennergi, its renewable energy business. The company commissioned the 68 MW Lephalale Solar Project at the Grootegeluk mine in Limpopo in April 2026. The R1.7 billion facility is connected directly to the mine and is expected to generate approximately 176 GWh of electricity annually. Exxaro estimates that it could reduce Grootegeluk’s electricity costs by about R100 million a year.
The project is supported by a 25-year power purchase agreement and is licensed for future battery energy storage integration. That feature is relevant because storage could eventually allow the mine to use a greater proportion of locally generated renewable electricity beyond daylight hours. For Exxaro, renewable generation is also becoming a business in its own right, rather than simply a mechanism for reducing the emissions of its coal operations.
This creates an important strategic distinction. Exxaro remains a major coal producer, but its investment in renewable generation reflects the changing economics of electricity supply. Cennergi is developing renewable assets that can serve Exxaro operations and potentially other customers, giving the group an opportunity to participate in the electricity market while reducing the energy costs associated with its existing mining activities.
The wider significance is that renewable energy is increasingly being treated by South African miners as infrastructure rather than as a standalone ESG initiative. Electricity costs directly affect the economics of mining, particularly for operations involving crushing, milling, smelting, ventilation, pumping and mineral processing. A long-term renewable power contract can therefore serve simultaneously as a decarbonisation instrument and a hedge against future electricity-price increases.
The economics are becoming more attractive as renewable technology costs decline and private electricity procurement becomes easier. At the same time, South Africa’s electricity market has been undergoing structural reform, including greater participation by independent power producers and the development of wheeling arrangements that allow private generators to supply customers through the national grid.
But the transition also has constraints. Renewable projects require significant upfront capital, transmission connections and long-term contractual commitments. Mines must also manage intermittency and ensure that electricity supply remains sufficiently reliable for continuous industrial operations. Battery storage can address part of the problem, but adding sufficient storage to replace conventional baseload or dispatchable generation can materially increase project costs.
There is also a question of grid dependence. Even companies that build their own solar projects or sign renewable power agreements remain connected to the broader electricity system. The success of private renewable procurement therefore depends partly on the capacity and reliability of Eskom’s transmission network and on regulatory arrangements governing grid access and wheeling.
For South Africa, this creates a potentially important feedback loop. Mining companies are becoming major buyers of renewable electricity, while their long-term contracts can help finance new generation capacity. More private generation can reduce pressure on the public utility and diversify the electricity system, but it does not eliminate the need for investment in transmission infrastructure and grid stability.
The trend also has implications for Africa’s wider mining economy. Countries across the continent are attempting to attract investment into minerals needed for the global energy transition while confronting unreliable electricity systems. Copper, platinum-group metals, lithium, manganese, cobalt and other minerals require large amounts of dependable power. The ability to combine renewable generation, storage, grid infrastructure and industrial demand could therefore influence where future processing and mining investment is located.
South Africa has an advantage in having one of the continent’s most developed electricity markets and a large base of industrial consumers. Its experience with corporate renewable procurement could provide a model for other African mining jurisdictions, although the institutional, grid and financing conditions differ substantially between countries. The emerging strategy is therefore less about miners abandoning Eskom overnight than about changing the composition of the electricity they consume. Anglo American is using a large renewable development and wheeling platform, Sibanye-Stillwater is expanding long-term renewable power procurement, while Exxaro is combining mining operations with direct renewable generation through Cennergi.
The next test will be whether these models can scale while maintaining reliable electricity supply and delivering the cost reductions expected by mining companies. If they can, renewable power could become an increasingly important part of mining competitiveness in South Africa, linking energy security, operating costs and emissions management in a single investment decision.
For the country’s mining sector, the energy transition is consequently becoming a commercial question as much as an environmental one. The companies able to secure competitive, reliable and increasingly low-carbon electricity may have greater flexibility in managing future energy costs and meeting the requirements of investors and international customers. At the same time, the scale of private investment now entering the electricity market highlights a broader shift in South Africa’s energy system, in which large industrial users are increasingly becoming participants in the transition rather than simply consumers of electricity supplied by the state.
