Powering the Future: How Battery Energy Storage Can Revolutionise Mining in South Africa

The mining sector, both in South Africa and globally, is facing growing challenges in securing its energy needs. As energy costs rise, the reliability of supply becomes more uncertain, and the pressure to decarbonise intensifies, mining companies must adopt new approaches to power their operations. In the past, energy choices were limited: costs were relatively low, tariffs were regulated, and climate concerns were less of a priority.

This landscape has changed dramatically. While the shift to renewable energy is essential, it has come with its own set of challenges. Initially, some mines turned to renewable solutions, often relying on internal teams or external advisory services to manage the transition. At this stage, with renewable penetration at lower levels, the financial model was straightforward and posed minimal risk.

As mines aim for higher shares of clean energy, and as the share of variable renewable energy (VRE) such as solar and wind increases on the grid, relying solely on VRE procurement is no longer sufficient. The complexity of integrating higher levels of renewable energy – especially with its inherent variability – has become a major concern. 

In today’s rapidly changing environment, flexibility is paramount.

The Role of Battery Energy Storage Systems (BESS) in Mining

Increasingly, mines are looking for ways to ensure a stable, reliable energy supply. The procurement of renewable energy alone is not enough to meet their needs. Flexibility is required, and this can be achieved through a variety of solutions, including Battery Energy Storage Systems (BESS). These systems are emerging as a major growth sector in the energy industry, with particular relevance to mining.

The Benefits of BESS for Mining Companies

1. Energy Security and Reliability

Power outages and load shedding continue to disrupt South Africa’s industrial sectors, including mining. BESS provides a stable and consistent energy supply, reducing downtime and production losses due to power interruptions.

2. Cost Savings on Energy

Electricity costs are one of the biggest operational expenses for mines. By integrating BESS with renewable energy sources, mines can store excess power during off-peak times and use it when electricity prices are higher, leading to significant cost savings.

3. Reduction in Carbon Footprint

Mining is historically a carbon-intensive industry. By incorporating BESS into their energy mix, mines can rely more on renewable energy, reducing greenhouse gas emissions and aligning with global sustainability goals and ESG (Environmental, Social, and Governance) standards.

4. Operational Efficiency and Flexibility

BESS allows for better management of energy loads, enabling mines to optimise operations and ensure critical processes continue running smoothly even during energy fluctuations.

5. Regulatory Compliance and ESG Goals

Governments and investors are increasingly pressuring industries to adopt greener practices. BESS helps mining companies comply with environmental regulations while enhancing their reputation as leaders in sustainable mining.

Global Trends and Case Studies

Around the world, BESS is already proving to be an essential technology for industrial users, especially in renewable-rich regions. In Australia, for example, the surge in utility-scale battery projects is remarkable, with a potential 16.8 GW of battery storage expected to come online by 2027. Similarly, Texas has experienced substantial growth in both solar energy and battery storage, adding nearly 2 GW of BESS capacity in 2024 alone, with projections to reach 16 GW by the end of 2025.

In the mining sector, battery storage is also becoming a key enabler of electrification. Mining companies like Fortescue Metals Group have committed to large-scale transitions to battery-electric fleets, reducing greenhouse gas emissions and lowering operational costs. Fortescue’s $4.06 billion deal to convert two-thirds of its fleet to battery-electric technology, including autonomous trucks, underscores the potential for BESS in reducing operational costs and improving efficiency.

The Future of BESS in South African Mining

In South Africa, BESS offers a unique solution to the challenges posed by Eskom’s erratic power supply. As the owner and operator of all currently operational solar-wheeling plants in the country, SOLA understands the potential of BESS for enhancing energy resilience. By combining solar energy with battery storage, we can provide more reliable, cost-effective power to mining operations, helping mitigate the risks associated with power shortages and load shedding.

The market for BESS in South Africa is rapidly expanding, driven by the country’s ambitious renewable energy goals and Eskom’s ongoing reliability issues. South Africa is investing heavily in grid-scale BESS projects, such as Eskom’s 1,440 MWh facility in Worcester, which is the largest of its kind in Africa. These projects are pivotal in enhancing energy stability and integrating renewable energy into the grid.

In addition to grid-scale projects, the South African private sector is also embracing BESS. The Kenhardt Solar Power Complex, which includes a 540 MW solar plant and a 225 MW/1,140 MWh BESS, is one such example. By combining solar with battery storage, these facilities are providing secure, sustainable power to large industrial users, including mining operations.

Conclusion: The Future of Mining with BESS

The rapid adoption of BESS in mining operations is part of a broader global trend. As the demand for clean, reliable energy continues to rise, BESS will be crucial in ensuring that mining operations can continue to meet their energy needs while reducing costs and carbon emissions. BESS is also playing a critical role in the electrification of mining fleets and other technologies that are reducing the sector’s environmental footprint.

BESS offers unparalleled flexibility, which is particularly important as market conditions and energy needs evolve. As new technologies and battery chemistries are developed, mining operations can continuously upgrade their systems, ensuring they remain efficient and cost-effective over time.

Despite the many challenges, including supply chain risks and the availability of critical materials like lithium, the future of BESS in the mining sector looks promising. South Africa, in particular, is well-positioned to leverage its rich mineral resources to support local battery manufacturing, reducing reliance on imports and fostering economic development.

As mines look to the future, they must embrace the flexibility and resilience that BESS offers. This is not just about reducing costs and managing risks, but also about leading the charge in the energy transition, improving the environmental impact of mining, and contributing to South Africa’s energy future.

Explore how BESS can benefit your mining operations. Register your interest so our team can find an option that helps you realise your cost-saving and carbon reduction goals here.