In 2018, B2Gold unveiled a unique initiative at the Otjikoto mine in Namibia: a collection of solar panels, marking a groundbreaking development for African mining operations.
The 6MW solar facility, along with a battery energy storage system (BESS), currently provides around 13% of the mine’s energy, as reported by the company. Ken Jones, B2Gold’s sustainability director, notes that the primary objective was to reduce the company’s carbon footprint.
“The essence of this effort is managing climate risk,” he elaborates. “You can’t fully decarbonise your operation until you enhance your electricity generation.”
Traditionally, like many mining companies in remote parts of Africa, B2Gold relied on dedicated heavy fuel oil (HFO) plants for energy. However, with the introduction of solar power and a connection to the Namibian electricity grid in 2023, the company has shifted the HFO plant at Otjikoto into care and maintenance mode. Additionally, B2Gold is investing in solar energy for its Fekola operation in Mali, where energy from solar and storage is anticipated to provide about 30% of the electricity at that site shortly.
Jones points out that solar energy has proven dependable at both the Namibian and Malian mines. “These systems have exceeded expectations, surpassing projections and models,” he states.
He adds that expanding the solar project in Mali will allow B2Gold to eliminate the use of HFO during daylight hours.
“We’re the first company of our scale to completely turn off all thermal engines during the day,” he mentions.
Cost advantages
Beyond environmental factors, cost was a significant consideration in B2Gold’s choice to invest in solar energy. Jones recalls that in 2018, “the economics were appealing, though not extraordinary.”
Despite this, the company moved forward, emphasizing reductions in emissions.
However, a simpler reason for the growing adoption of solar energy among mining companies is cost.
“Transitioning to renewable hybrid power solutions is now considerably more economical than in the past. Over the last 18 months, battery prices have seen a drastic decline,” explains James Shoetan, chief commercial officer at CrossBoundary Energy, a company focused on distributed renewable energy projects across Africa.
“We’re finding that baseload renewables can be 20-30% less expensive than a fully thermal fleet,” he adds.
“We have found a product-market fit,” he continues. “When benefits to clients are clearly demonstrated, demand often rises significantly.”
Roberto Berardo, senior vice president for mining and industries at solar developer Release by Scatec, shares a similar view. “We started about four and a half years ago,” he notes.
“At that time, it was difficult to engage mining firms regarding renewable energy. Today, nearly every new mining operation without stable grid access is actively exploring alternative energy sources, particularly renewables and solar. This is quickly becoming standard practice within the industry.”
“We are witnessing the lowest costs ever for both solar generation and battery energy storage, with further improvements still possible, especially in BESS,” he continues.
“Most, if not all, new mines will integrate solar energy into their plans,” Berardo asserts. “Additionally, there are many more opportunities at existing mining operations to replace some of the costly and polluting fuels.”
He highlights that mining companies account for a significant share of the 13 GW of HFO utilized across the continent (excluding South Africa). HFO plants are among the most environmentally harmful methods of electricity generation and are regarded as outdated in numerous regions globally. However, Berardo indicates that renewables have replaced less than 1 GW of HFO demand in Africa so far.
He believes that current mines will struggle to transition to renewables without an immediate financial incentive, especially during periods of rising fuel costs that threaten economic stability. Moreover, he notes that mines may be hesitant to switch during times of high commodity prices since they face less financial pressure to reduce expenses.
“For operational mines, implementing changes can be difficult without immediate and inherent financial relief,” he explains. While larger mining companies subject to scrutiny may invest in solar as part of their net-zero initiatives, smaller firms are typically motivated by cost considerations.
“For mid-sized or junior mining companies, the decision to embrace renewables largely hinges on commodity and fuel prices. If it’s not an urgent issue today, it’s unlikely to be prioritized immediately.”
Growing solar
Shoetan emphasizes that technological advancements and decreasing costs are enabling the development of larger renewable projects at mining sites.
“We are currently working on two projects aimed at achieving nearly 100% renewable energy,” he shares. “This is incredibly inspiring to me, as it proves that renewable energy in Africa can indeed provide baseload solutions—a transformative prospect.”
However, challenges remain in increasing the share of renewables in mining companies’ energy portfolios. According to Jones, B2Gold would need to invest in wind energy to further reduce its carbon emissions at Fekola in Mali.
“Relying solely on solar with battery storage for nighttime use is simply not cost-effective,” he asserts. “It is not feasible to create a sufficiently large battery to operate a mill overnight; additional renewable sources, such as wind, are essential.”
Another major limitation is the scarcity of available land near mine sites for large-scale solar or wind installations. One potential solution is ‘wheeling,’ where renewable energy is generated in one location and subsequently distributed to the customer via the national power grid.
Wheeling is reasonably established in South Africa but is just starting to gain momentum elsewhere. B2Gold intends to utilize a wheeling agreement to procure electricity from a 10MW solar plant in Namibia, with commissioning anticipated in February 2025.
Berardo, however, acknowledges that while wheeling is “becoming more viable” in regions like Namibia and Zimbabwe, regulatory obstacles and inadequate grid infrastructure mean that this approach will not be practical everywhere. “We do not believe that wheeling will serve as a universal solution for every mine, as utilizing utility infrastructure as a makeshift battery bank is a temporary fix.”
Despite the ongoing technical and commercial hurdles, the advancements being made in scaling up renewable energy at mining sites across the continent illustrate the potential ahead. With Africa poised to play a vital role in supplying critical minerals for the global energy transition, reducing the mining sector’s carbon footprint is more essential than ever.
“The outlook is extremely promising,” Shoetan concludes. “I believe we will continue to see growth and the emergence of larger solutions.”
