DailySun
In 2018, B2Gold launched an innovative feature at the Otjikoto mine in Namibia: a collection of solar panels, marking a significant first for an African mining operation.
This 6MW solar facility, along with a battery energy storage system (BESS), now accounts for about 13% of the mine’s power supply, according to company reports. Ken Jones, B2Gold’s sustainability director, explains that the main objective was to reduce their carbon emissions.
“Addressing climate risk is fundamentally what’s at stake here,” he states. “You can’t achieve full decarbonisation of your operation without enhancing your electricity generation.”
Traditionally, B2Gold, like many other mining firms in Africa’s remote regions, relied on dedicated heavy fuel oil (HFO) plants for energy. However, by incorporating solar energy and connecting to the Namibian electricity grid in 2023, the company has transitioned the HFO facility at Otjikoto to maintenance mode. In addition, B2Gold is pursuing solar energy initiatives at its Fekola operation in Mali, where solar combined with storage is projected to eventually supply around 30% of the site’s energy needs.
Jones points out that solar energy has proved reliable at both the Namibian and Malian sites, stating, “These facilities have exceeded expectations, performing better than our projections and models.”
He also notes that the expansion of the solar project in Mali will allow B2Gold to eliminate HFO usage during daylight hours.
“We’re the first company of our size to entirely shut down all thermal engines during the day,” he adds.
Cost advantages
In addition to environmental factors, cost significantly influenced B2Gold’s choice to invest in solar energy. Jones recalls that in 2018, “the economics were favorable, but not exceptionally impressive.”
Nonetheless, the company moved forward, focusing on emission reductions.
However, a simpler explanation for the rising adoption of solar power among mining companies is cost.
“Transitioning to renewable hybrid power solutions is now far more cost-effective than ever before. In particular, over the past 18 months, battery prices have plummeted,” says James Shoetan, chief commercial officer at CrossBoundary Energy, a firm dedicated to distributed renewable energy solutions across Africa.
“We’re finding that baseload renewables can be 20-30% less expensive than a full thermal fleet.”
“We’ve achieved a product-market fit,” he adds. “When benefits for clients can be clearly demonstrated, demand typically soars.”
Roberto Berardo, senior vice president for mining and industries at solar developer Release by Scatec, shares a similar view. “We began our journey four and a half years ago,” he notes.
“At that time, it was difficult to engage mining companies about renewables. Today, virtually every new mining venture without stable grid access is actively exploring alternative energy sources, particularly renewables and solar. This trend is swiftly becoming the norm in the industry.”
“We’re observing the lowest costs ever for both solar generation and battery storage, with further potential for improvement, especially in BESS,” he continues.
“Most, if not all, new mines will integrate solar energy into their operational plans,” Berardo asserts. “Furthermore, significant opportunities exist at existing mining operations to replace some of the costly and polluting fuels.”
He highlights that mining companies represent a large portion of the 13 GW of HFO utilized across the continent (excluding South Africa). HFO facilities are among the most environmentally harmful methods of power generation, viewed as outdated in numerous global regions. However, Berardo indicates that less than 1 GW of HFO demand in Africa has yet to be substituted by renewables.
He feels that existing mines will undergo a slow transition to renewables absent an immediate financial incentive, particularly during periods of rising fuel costs impacting economic stability. Moreover, mines may be reluctant to transition during times of high commodity prices, as the financial pressure to reduce costs is lessened.
“For operational mines, implementing changes is often difficult without immediate financial relief,” he explains. While larger mining firms under scrutiny may invest in solar as part of their net-zero initiatives, smaller operations typically focus on costs.
“For mid-sized or junior mining companies, the move towards renewables mainly hinges on commodity and fuel prices. If it isn’t a pressing issue today, action is unlikely to be taken immediately.”
Amplifying solar
Shoetan underscores that advancements in technology and decreasing costs are paving the way for larger renewable projects at mining sites.
“We are currently working on two projects aimed at achieving nearly 100% renewable energy,” he reveals. “This is quite encouraging for me, as it showcases that renewables in Africa can indeed deliver baseload solutions—a genuine game changer.”
However, challenges remain in increasing the renewable share within the energy portfolios of mining firms. According to Jones, B2Gold would need to invest in wind energy to further lower its carbon emissions at Fekola in Mali.
“Solar combined with battery storage for nighttime use is simply not cost-effective,” he insists. “It’s not feasible to create a battery sufficiently large to run a mill overnight; complementary wind or other renewables will be essential.”
Another significant limitation is the scarcity of available land near mines for large solar or wind installations. One possible solution is ‘wheeling,’ where renewable energy is generated in one location and conveyed to the customer through the national power grid.
Wheeling is well established in South Africa but is just beginning to gain momentum elsewhere. B2Gold plans to implement a wheeling agreement to purchase electricity from a 10MW solar facility in Namibia, which is expected to come online in February 2025.
Berardo, however, acknowledges that while wheeling is “becoming more feasible” in places like Namibia and Zimbabwe, regulatory obstacles and insufficient grid infrastructure indicate that this strategy may not be practical universally. “We don’t believe that wheeling will act as a one-size-fits-all solution for every mine, as utilizing utility infrastructure as a sort of battery bank is a temporary fix.”
Despite persistent technical and commercial challenges, the advancements being made in scaling renewable energy at mining locations throughout the continent highlight the potential ahead. With Africa gearing up to play a vital role in supplying essential minerals for the global energy shift, reducing the mining sector’s carbon footprint is of utmost importance.
“The outlook is extremely promising,” Shoetan concludes. “I believe we will continue to see growth and the emergence of larger solutions.”
