As large energy consumers, these sectors face extreme pressure due to South Africa’s energy crisis. In the mining sector, for example, every 1000 GWh of loadshedding means an estimated 2% decrease in annual mining output. Data from Stats SA shows that the manufacturing of non-ferrous metals was a whopping 15% lower in 2023 than when the electricity crisis started in 2008.
But loadshedding’s effect on output is only one part of the puzzle; the other is the impact of skyrocketing electricity tariffs on the mining and manufacturing sectors.
Tariffs have increased more than 450% since the start of the power crisis – a trend that looks to continue into the immediate future. The National Energy Regulator of South Africa (NERSA) recently published Eskom’s revenue application for the next three financial years, revealing that the public utility is seeking funds to the tune of R446 billion for FY2026, R495 billion for FY2027, and R537 billion for FY2028. This would entail electricity tariff increases of 36.15% for 2025/26, 11.81% for 2026/27, and 9.10% for 2027/28 respectively, weighing even more heavily on the sectors.
We launched Electricity 2.0, our new virtual power eco-system, in answer to the challenges faced by our customers – particularly those in mining and manufacturing. Electricity 2.0 offers a cheaper electricity alternative to traditional utility power all while giving you access to far more energy than you could ever produce on site.
Electricity 2.0 doesn’t replace utility power, which is still part of the mix; instead, it gives you more choice, greater power security and massive cost savings – moving you closer to your sustainability goals.
Our virtual power solutions include:
These next-generation power solutions work seamlessly together to help your business:
With Electricity 2.0, you can decide on the best and cheapest form of electricity to consume, at a time that makes the most sense to your operations.
This is where it gets really exciting: Electricity 2.0 will give you cheaper electricity rates, shaving millions off your utility bill.
For example, a 24-hour electricity user with a monthly bill of R16 million can reduce their spend by R4.5 million each month through power wheeling, equating to yearly savings of nearly R55 million. If we assumed a 10% increase in the annual utility tariff, over a 10-year wheeling agreement period you would typically see a savings of R131 million. Over 20 years, this savings would jump to R435 million.
The mining and manufacturing industries have stringent net zero targets – Electricity 2.0 moves you closer to your sustainability goals, cost-effectively and in a way that works for your business. Depending on how you structure your energy mix, you could achieve up to 100% green power.
Electricity 2.0 benefits include:
With Electricity 2.0, you now have access to all these virtual power solutions in one place, which can be layered on top of traditional electricity sources – such as utility power, on-site solar and battery – for cheaper electricity and more power security.
No more power monopoly from just one source. Electricity 2.0 gives your business energy independence with more choice and control, tailored to your specific power needs.
