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Gold mines can play a key role in establishing infrastructure for transition to renewables

Mining companies are developing and deploying strategies to reduce climate-related risks in the locations where mines are situated, and the ability for gold mines to self-generate power on a practical scale from solar plants is helping to create a viable source of skills and infrastructure that will benefit other sectors, says market development organisation World Gold Council (WGC) CFO Terry Heymann. “We have seen this in several locations across Africa and beyond. In seeking to decarbonise their own operations, many WGC members have been first movers in bringing clean energy to countries and locations where it would otherwise not have been present or affordable. This is a trend that will continue to grow,” he states.
February 16, 2023 by

Ramaphosa’s investment czar says South African infrastructure in dire state

The head of South African President Cyril Ramaphosa’s infrastructure and investment office warned that the nation’s power, rail and water reticulation systems are in a dire state and that fixing them will take years even if immediate action is taken. In a paper entitled South Africa’s Infrastructure Emergency: An Urgent and Collaborative Intervention, Kgosientsho Ramokgopa gave the country’s infrastructure a D rating. Ports, freight-rail lines, power plants, metropolitan roads, state schools and waste collection were all deteriorating, he said. Public hospitals were also assessed to be in a poor state.
February 15, 2023 by

EU carbon border tariffs could knock $16bn off Africa’s yearly GDP

Concern is growing in South Africa and across Africa about the implications of the European Union’s (EU’s) decision to proceed with the implementation of a carbon border adjustment mechanism (CBAM) as a way of preventing so-called ‘carbon leakage’ by imposing a tariff on imports equivalent to the carbon prices being paid by European companies. In terms of an agreement reached in December, the CBAM will be implemented later this year and will initially cover the carbon-intensive sectors of iron and steel, cement, fertilisers, aluminium, electricity and hydrogen, as well as some precursors and a limited number of downstream products.
February 15, 2023 by

Global installed hydropower capacity could double by 2050

Installed hydropower capacity could double by 2050 and play a key role in supporting the introduction of more variable renewable power, global industry organisation the International Renewable Energy Agency (IRENA) states in its ‘The Changing Role of Hydropower: Challenges and Opportunities’ report. Hydropower plants offer a range of services to the grid that include balancing and ancillary services, while also enjoying a high capacity factor relative to some other renewable energy sources. These are becoming increasingly important in the context of the energy transition and climate change, the agency states.
February 14, 2023 by

Exxaro receives benchmark ESG rating

Diversified energy company Exxaro reports that its commitment to a just energy transition (JET) has resulted in the organisation becoming the only basic resources company, globally, with an improved environmental, social and governance (ESG) rating of Level 4.

As a result of its actionable commitments towards a JET, FTSE Russell’s Green Revenues data model, designed to measure the revenue exposure of public companies engaged in the transition to the green economy, bestowed a Green Revenues Factor rating of 3.64% on Exxaro for the first time ever.

February 14, 2023 by

Mantashe doubles down on characterisation of Electricity Minister as ‘project manager’

Mineral Resources and Energy Minister Gwede Mantashe has doubled down on his characterisation of the proposed Minister of Electricity as that of a project manager but has denied that such a portrayal reduces the authority of the appointee. In a speech made in response to President Cyril Ramaphosa’s State of the Nation Address, in which the President announced that a new Minister of Electricity in The Presidency would be appointed as part of efforts to accelerate the implementation of the Energy Action Plan announced last year to tackle loadshedding, Mantashe argued that a project management approach emphasised “urgency of execution and delivery”.
February 14, 2023 by

Private equity fund launched to replace R12bn Section 12J tax incentive

The Twelve B Green Energy Fund – South Africa’s first private equity fund enabling green energy investors to qualify for South African Revenue Service-approved tax deductions – was launched on February 14.

The fund, regulated by the Financial Sector Conduct Authority, has a mandate to invest in solar panels, inverters and batteries in residential complexes, as well as commercial and industrial installations.

February 14, 2023 by

Salga hopes to play role in alleviating energy crisis

The South African Local Government Association (Salga) has welcomed the declaration of a State of Disaster over the country’s energy crisis, and it hopes to play a central role in the process. In an exclusive interview with Polity following last week’s State of the Nation Address tabled by President Cyril Ramaphosa, Salga president Bheke Stofile said that the energy crisis had always been a disaster for local government.
February 14, 2023 by