South Africa’s energy transition is a shared opportunity to strengthen energy security and sustainability while supporting growth and cutting emissions. At the Joburg Indaba, Kearney Partner Frances Phillips said the transition depends on reliable, affordable power. Mining can contribute as a major energy user and investor.

Coal supplies about four-fifths of electricity today. The IRP 2025 headline 2039 mix includes 24% wind, 18% solar PV and 27% coal, alongside gas, storage and nuclear. Phillips framed the challenge: “We are definitely moving away from the reliance on a singular technology to a mix. Of that, we all know that about 40 percent will be renewables, but what about the balance?”

As wind and solar grow, the system will need to balance their variable output with demand. Batteries and pumped hydro can store electricity; gas can provide flexible generation. Phillips said: “It’s truly going to be a mix, but at the centre of that mix is the enablement through the grid: being able to get the power from where it’s produced to where it’s needed, and the ability to stabilise the grid.” Grid investment and clear rules for private participation will be important as generation and storage expand.

Mining’s demand helps make this investment viable. Companies are pursuing on-site generation, renewable power purchase agreements, wheeling and partnerships. Examples include a 63 MW solar project planned for Kumba’s Sishen mine, an agreement expected to supply up to 90% of an Implats refinery’s power demand, and the 520 MW Kumba-Envusa renewable cluster. These projects support operations and add generation to the wider market.

Mining’s contribution can also draw on the sector’s experience and capabilities. Phillips said transferable maintenance and construction skills can help address capability gaps. Aggregated procurement demand for solar and wind projects can advance commercialisation and local industrialisation, while mining’s rehabilitation experience can support the decommissioning and repurposing of power stations and other energy assets.

Those industrial capabilities also open a route to higher-value local production. Phillips sees potential to pair renewable energy with South African iron ore to produce green iron, including direct reduced iron for export. Realising it will require affordable power, processing facilities, reliable rail and port infrastructure, and credible buyers.

Reliable power is essential to mining’s growth, and the sector can help strengthen the energy system through investment, infrastructure and local supply chains. Phillips said progress should be judged by clear results: dependable power, projects delivered, workers supported and value created locally. Together, these outcomes can make energy security and sustainability a shared opportunity for South Africa’s mining sector and its wider economy.