How Virtual Power Can Transform Mining & Manufacturing

Virtual-Power-Mining-Manufacturing - SolarAfrica- Energy Solutions-Mining and Manufacturing

Empowering South Africa’s Industries with Cost-Effective Virtual Power

The mining and manufacturing sectors are important players in South Africa’s economy, contributing significantly to the GDP and employment. However, as energy demands grow, virtual power solutions are emerging as a viable alternative to meet these sectors’ needs sustainably.

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. 

Enter Electricity 2.0

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: 

  • Wheeling Think of it this way: Eskom generates power that you buy from them. With electricity wheeling, we generate power that you can buy directly from us. This power is generated at our utility-scale solar farms and you can buy it at a far lower tariff than through Eskom. With no need for on-site installation, you benefit immediately from cheap, green energy. Power wheeling is the ultimate cost-saver.  
  • Trading – We are an independent power producer (IPP) and have electricity trading capacity, which means that we can buy and sell energy from multiple IPPs, giving you more choice, savings and flexibility. 
  • Aggregation – We build power communities in rural and outlying areas, allowing multiple off-takers to consolidate their power bills and maximise cost savings through greater efficiencies. This is particularly useful in the agricultural space. 

These next-generation power solutions work seamlessly together to help your business: 

  • Save on your electricity bills
  • Reach your sustainability targets 
  • Take more control of where, when and how you consume power 

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. 

And the benefits?

This is where it gets really exciting: Electricity 2.0 will give you cheaper electricity rates, shaving millions off your utility bill.  

SolarAfrica Energy Before Electricity 2.0

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: 

  • Guaranteed savings our electricity tariffs are up to 50% cheaper than Eskom’s 
  • Lower carbon footprint 
  • Our simplified & centralised billing offers more control over your monthly spend (one contract for multiple sites) 
  • No upfront installation or operational costs to get going – simply sign your Virtual Power Purchase Agreement (VPPA) to tap into our power ecosystem.  

All in one place

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.  

Get in touch with us today and let’s chat. 

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