In 2018, B2Gold unveiled a unique initiative at the Otjikoto mine in Namibia: a solar panel installation that was seen as quite innovative for an African mining enterprise.

The 6MW solar power facility, paired with a battery energy storage system (BESS), now provides nearly 13% of the mine’s energy, as reported by the company. Ken Jones, B2Gold’s sustainability director, emphasized that the main objective was to reduce the company’s carbon footprint.

“At its core, managing climate risk is what we’re aiming for,” he elaborates. “You can’t decarbonize your entire operation until you enhance your electricity generation.”

Historically, like many mining companies in Africa’s remote areas, B2Gold relied on dedicated heavy fuel oil (HFO) plants for power. However, with the integration of solar energy and a connection to the Namibian electricity grid in 2023, the HFO plant at Otjikoto has been transitioned to care and maintenance mode. Furthermore, B2Gold is also investing in solar energy at its Fekola operation in Mali, where solar plus storage is projected to soon supply around 30% of the site’s electricity.

Jones underscores that solar energy has proven to be reliable at both the Namibian and Malian sites. “These facilities have exceeded expectations, outperforming our initial projections and modeling,” he notes.

He highlights that scaling up the solar project in Mali will allow B2Gold to cease HFO use during daylight hours.

“We’re the first company of our caliber to entirely shut down all thermal engines during the day,” he adds.

Cost advantages

Beyond environmental considerations, cost significantly influenced B2Gold’s solar energy investment decision. Jones recalls that in 2018, “the economics were favorable, though not exceptionally compelling.”

Nevertheless, the company moved forward, emphasizing emission reductions.

A more straightforward reason behind the growing acceptance of solar power among mining firms is financial savings.

“Transitioning to renewable hybrid power solutions has become significantly more affordable than ever. Particularly in the last 18 months, battery costs have dropped substantially,” states James Shoetan, chief commercial officer at CrossBoundary Energy, a company focused on distributed renewable energy projects across Africa.

“We are discovering that baseload renewables can be 20-30% cheaper than relying solely on thermal fleets.”

“We’ve found an optimal product-market fit,” he adds. “When you can clearly illustrate benefits to clients, demand usually surges.”

Roberto Berardo, senior vice president for mining and industries at solar developer Release by Scatec, shares a similar view. “We embarked on this journey four and a half years ago,” he says.

“Back then, it was difficult to engage mining companies regarding renewables. However, today, nearly every new mining company lacking access to a stable grid is actively exploring alternative energy sources, particularly renewables and solar. This is swiftly becoming the industry standard.”

“We’re observing unprecedented low costs for both solar generation and battery energy storage, and there’s still potential for further advancements, especially in BESS,” he continues.

“Almost all new mines will incorporate solar energy into their designs,” Berardo affirms. “Furthermore, there are even more opportunities for existing mining operations to replace some of the costly and polluting fuels.”

He points out that mining companies consume a large portion of the 13 GW of HFO utilized across the continent (excluding South Africa). HFO plants are recognized as some of the most environmentally harmful methods of electricity generation and are considered outdated in many regions. Nevertheless, Berardo reveals that less than 1 GW of HFO demand in Africa has been replaced by renewable sources to date.

He expresses concern that current mines will take time to transition to renewable sources without immediate financial incentives, particularly during periods of rising fuel prices that affect economic stability. Moreover, he notes that mining companies may hesitate to make the switch during high commodity price periods when there’s less financial pressure to reduce costs.

“For operational mines, implementing changes often proves difficult without seeing inherent and immediate financial relief,” he explains. While larger mining companies under scrutiny might invest in solar as part of their net-zero commitments, smaller firms tend to be more cost-driven.

“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 addressed immediately.”

Growing solar presence

Shoetan highlights that advancements in technology and declining costs are making it feasible for larger renewable projects at mining sites.

“We are currently working on two projects aiming for nearly 100% renewable energy,” he shares. “This excites me, as it shows that renewables in Africa can indeed furnish baseload solutions—a genuine game changer.”

However, challenges remain in increasing the renewable proportion in mining companies’ energy portfolios. According to Jones, B2Gold would need to invest in wind energy to further lower its carbon emissions at Fekola in Mali.

“Solar with battery storage for nighttime operation is simply not cost-effective,” he insists. “You cannot produce a sufficiently large battery to operate a mill overnight; complementary wind or other renewable sources are required.”

Another significant barrier is the lack of available land near mine sites for expansive solar or wind installations. One potential solution is ‘wheeling,’ where renewable energy is generated in one location and transmitted to the customer through the national power grid.

Wheeling is well-established in South Africa but is just beginning to gain momentum elsewhere. B2Gold anticipates utilizing a wheeling agreement to purchase electricity from a 10MW solar facility in Namibia, with commissioning planned for February 2025.

However, Berardo acknowledges that while wheeling is “becoming more feasible” in regions such as Namibia and Zimbabwe, regulatory challenges and inadequate grid infrastructure mean that this approach won’t be practical everywhere. “We don’t believe that wheeling will be a universal solution for every mine, as using utility infrastructure as a kind of battery bank is merely a temporary workaround.”

Despite ongoing technical and commercial challenges, the advancements being made in expanding renewable energy at mining sites across the continent reveal promising prospects. With Africa set to play a pivotal role in providing essential minerals for the global energy transition, reducing the mining sector’s carbon footprint is more crucial than ever.

“The future looks incredibly promising,” Shoetan concludes. “I am confident we will continue to see growth and the development of larger solutions.”