Africa has yet to cut its ties with coal. "Most coal power stations in Africa will not close prematurely, though there may no longer be investments into new coal projects as we move beyond coal to sources of energy with lower emissions," commented Andrew van Zyl, director and principal consultant at SRK Consulting.
While the move to alternative energy sources presents an attractive opportunity, this energy transition will cause disruption. For example, in South Africa alone, the transition threatens 120,000 South African jobs since coal mines and power stations are more labour intensive than renewable energy plants. However, power supply issues are topical across the region, especially in South Africa. "Eskom is experiencing difficulties that impact the reliability of supply. A load shedding system has been implemented to lessen the burden on power stations. However, from an operational point of view, the power supply is of great concern," explained Banzi Giyose, co-founder and vice president of BG Global, a majority black-owned international mining investment firm.
Renewables offer an attractive alternative in an industry where power represents 20 – 30% of costs. "We see a growing desire by the mines, investment communities, governments and the public in general to decarbonize," confirmed Alistair Jessop, head of power at Vivo Energy, the Shell licensee supplying mines around the country. "Some countries have regulatory hurdles that need to be crossed, but the markets for renewable energies are opening up."
Read the full article in Global Business Reports
