South Africa’s energy transition is taking shape in a seemingly unlikely place: its mines.
The country’s largest mining companies are accelerating investment in solar plants, wind farms and battery storage systems to reduce electricity costs, protect production from power disruptions and lower their carbon emissions.
This is no longer simply a decision driven by environmental reputation. Renewable energy is becoming an essential part of industrial competitiveness.
Mining consumes enormous amounts of electricity. Energy is required to extract, transport and process coal, iron ore, platinum, gold and other minerals. An unreliable power supply can therefore become a serious economic problem.
When electricity is interrupted, machinery stops, processing plants slow down and production costs rise. In underground mines, a power failure can also affect ventilation, pumping systems, lifts and worker safety.
Mining companies have responded by generating part of their electricity directly or signing long-term agreements with independent power producers.
The result is a transformation that could reshape not only the mining sector, but South Africa’s entire electricity system.
Grootegeluk Embodies South Africa’s Energy Paradox
One of the most significant examples can be found at Grootegeluk, one of the world’s largest coal mines.
In December 2025, Exxaro commissioned the Lephalale solar plant near the mining complex. The facility has a capacity of 68 megawatts and consists of more than 129,000 solar panels covering approximately 185 hectares.
It is an image that perfectly captures the complexity of South Africa’s transition: a major solar installation built to provide electricity to a coal mine.
The plant is designed to generate approximately 176 gigawatt-hours of electricity annually under a 25-year power purchase agreement. According to Exxaro, it is expected to save the Grootegeluk mine around 100 million rand every year in electricity costs. The project data are included in Exxaro’s business report.
Following the start of commercial operations, the facility reduced Grootegeluk’s reliance on the Eskom grid by 30%. During the first months of 2026, indirect emissions associated with purchased electricity fell by 22%. Exxaro reported the updated results in its 2026 interim review.
The project offers the company three immediate benefits: lower costs, greater energy security and reduced emissions.
Why Mines Can No Longer Depend Exclusively on Eskom
For decades, South African industry built its growth around the availability of relatively inexpensive electricity supplied by Eskom. The model was particularly suitable for an economy dominated by mining and other energy-intensive industries.
In recent years, however, the national grid has faced structural difficulties. Equipment failures, insufficient maintenance, limited generating capacity and transmission congestion have increased the risk of supply interruptions and scheduled power reductions.
For a household, an outage may mean spending several hours without lights or household appliances. For an underground mine, it can affect ventilation, drainage pumps, lifts, safety systems and mineral-processing facilities.
Energy continuity is therefore also a matter of worker safety.
Mining companies realised that waiting for the complete modernisation of the national grid would mean accepting years of uncertainty. They consequently began investing directly in electricity generation or financing new projects through long-term supply agreements.
This arrangement allows renewable energy developers to secure financing through the commitment of a large industrial customer. Mines, meanwhile, can fix part of their electricity costs for an extended period and reduce their exposure to sudden price increases.
Anglo American and EDF Target Up to Five Gigawatts
The transformation extends well beyond Exxaro.
Anglo American and EDF Power Solutions created Envusa Energy, a renewable energy platform intended to develop large solar and wind projects for mining and other industrial operations.
Its first major portfolio, known as Koruson 2, includes 520 megawatts of renewable capacity across the Northern and Eastern Cape:
- the 240-megawatt Mooi Plaats solar plant;
- the 140-megawatt Umsobomvu wind farm;
- the 140-megawatt Hartebeesthoek wind farm.
The first two facilities reached commercial operation in March and April 2026, while the third entered the final stage of construction. Electricity from the projects is fed into the national grid and allocated to operations belonging to Valterra Platinum, De Beers and Kumba Iron Ore.
Envusa aims to develop between three and five gigawatts of renewable capacity by 2030. Anglo American describes the programme as a platform for South Africa’s industrial decarbonisation.
Kumba has also entered into an agreement for a 63-megawatt solar facility at the Sishen iron ore mine. Electricity production is expected to begin during the final quarter of 2027, potentially reducing the mine’s indirect emissions by approximately 35%. The project was announced by Kumba Iron Ore.
Northam Platinum Combines Solar, Wind and Batteries
Northam Platinum is also developing a diversified energy system for its mining operations.
An 80-megawatt solar plant is nearing completion at the Zondereinde mine. The facility will provide electricity behind the Eskom meter, reducing the mine’s exposure to grid supply restrictions.
The group has also signed an agreement to purchase electricity from a 140-megawatt wind farm near Sutherland in the Western Cape. The project is expected to generate approximately 460 gigawatt-hours annually and supply three of Northam’s mining and processing operations.
According to the company, the combination of solar and wind energy could reduce its carbon footprint by as much as 45%, while delivering significant cost savings and improving security of supply. Northam published details of the wind project.
The next step is battery storage.
At the Eland mine, Northam plans to develop a 20-megawatt solar plant supported by 40 megawatt-hours of battery storage. Zondereinde is expected to receive a much larger 250-megawatt-hour battery park.
Battery systems cannot completely replace the national grid or conventional generation. They can, however, store electricity when solar production is strong and release it when demand is higher or the grid is under pressure.
Eskom Is Also Attempting to Change
The growth of private renewable energy investment does not necessarily mean the end of Eskom. Instead, the national utility is attempting to redefine its role.
In June 2026, Eskom launched Eskom Green, a dedicated business intended to develop utility-scale renewable projects and provide energy solutions for large industrial customers.
The stated objective is to help South African companies decarbonise their operations and remain competitive in international markets. Its portfolio includes at least two gigawatts of renewable generation and pumped-storage projects expected to advance from 2026. The initiative was officially presented by Eskom.
Among the first developments is a 75-megawatt solar facility at the Lethabo coal-fired power station.
The 1.2-billion-rand project is expected to generate approximately 147 gigawatt-hours annually—an amount equivalent to the electricity consumed by roughly 60,000 households.
Once again, the project reflects the practical nature of South Africa’s transition: sites and infrastructure originally built for coal are gradually being used to support new sources of electricity.
The Grid Could Become the Biggest Obstacle
Increasing solar and wind production will not automatically solve South Africa’s energy problems.
Many areas with the best renewable resources are located far from the country’s largest industrial centres. Their electricity must travel through Eskom’s transmission network, which does not have sufficient capacity in every region to accommodate all the proposed projects.
Without new power lines and substations, some developments could remain delayed even after securing financing and regulatory approval.
Major mining groups can build private infrastructure or finance dedicated grid connections. Smaller companies do not have the same resources.
The risk is that the energy transition could primarily benefit the strongest mining groups while leaving smaller businesses and local communities behind.
There is also the possibility that large industrial consumers will gradually protect themselves through private energy arrangements while households remain exposed to an expensive and unstable national system.
What Will Happen to Coal Workers?
Employment remains the most sensitive issue.
Coal continues to play a central role in South Africa’s energy and industrial system. Thousands of households depend directly on mines, power stations, transport services and the businesses connected to them.
A transition that moves too quickly without adequate protection could cause job losses and social unrest in mining regions. Delaying change indefinitely, however, would expose the country to higher energy costs, ageing infrastructure and growing difficulties in exporting to markets that increasingly demand lower-carbon products.
The answer will require professional training, investment in mining communities and the development of new industrial activities.
Manufacturing solar panels, turbines, batteries and related components in South Africa could generate a valuable domestic supply chain. Simply importing all the technology would significantly reduce the employment benefits of the transition.
Local communities also need to participate directly in the economic value created by renewable projects. Land use, ownership structures, training opportunities and local procurement will determine whether the energy transition is seen as a shared opportunity or another industry operating around communities without transforming their lives.
A Revolution Driven by Necessity
South African mining companies are not investing in renewable energy exclusively to protect the climate. They are doing so because electricity generated by the sun and wind has become an economic, industrial and strategic choice.
The Grootegeluk project demonstrates this clearly. Reducing dependence on Eskom by 30% and saving approximately 100 million rand annually directly protects the profitability of the mine.
There remains an obvious paradox in using solar power to support coal production. Yet major economic transitions rarely follow a simple or perfectly linear path.
South Africa cannot suddenly switch off an electricity system built around coal. It can, however, use the financial and industrial strength of its mining sector to construct part of the energy infrastructure required for the future.
If these investments are accompanied by transmission upgrades, worker training and meaningful participation by local communities, mining could become one of the engines of South Africa’s energy transition.
If every large company builds only its own private system, the country may instead end up with secure and competitive mines surrounded by cities and businesses still exposed to unreliable and expensive electricity.
The key question is no longer whether solar and wind energy can work for South African mines. The first results show that they can.
The real question is whether the energy revolution beginning inside the mining industry will eventually reach the rest of South Africa.