Several mining companies are keen to generate their own electricity from renewable-energy sources. In most instances, renewable-energy companies are prepared to build solar power plants and wind energy plants on mine sites, provided the mining companies enter into offtake agreements.

Banks are eager to fund the building of renewable-energy plants and mining companies look forward to energy security, the absence of power disruption, tariffs that are well below those of Eskom and the avoidance of greenhouse-gas emissions.

At all those levels, it is clearly a no-brainer for mining companies to make their own energy arrangements – but Eskom puts so many obstacles in their path that construction plans remain in bottom drawers and the utility preserves its monopoly, high tariffs and load-shedding notwithstanding.

One company wanting to establish a 100 MW solar power plant has been told it can only put up 10 MW and will also pay hefty sums to make use of the transmission system.

Another, deep in renewable-energy territory, where the sun provides 85% availability and prime wind blows at night, has been asked for R50-million from Eskom to use the transmission lines.

To add to the red tape, the National Energy Regulator of South Africa (Nersa) is refusing to register new renewable-energy projects and, all the while, the growth of the South African economy is held back by a State entity.

Those that caused Eskom to falter should be exposed at every level and Nersa should be brought into line with reality.

Just take last week’s report by the South African Reserve Bank that South Africa’s electricity cuts could bring economic growth for the year close to zero if they continue at the same severity seen in March.

Then look at the first-quarter production of Anglo American Platinum, which power disruptions diminished by 6% year-on-year, and the list could go on.

Opening the way for renewable energy offers lower costs, jobs and a decarbonised environment. How can anyone, let alone a government enterprise and a State energy regulator, stand in the way of those three clear benefits?

Mining startups in sunny and windy areas like the Northern Cape need every cost advantage they can get and they should not be forced to deal with Eskom when there is already something like 250 MW of renewable power capacity being installed there.

The current dream of some who have chatted to Mining Weekly is to have their own self-funded, self-used and self-stored renewable energy.

Government is constantly urging mining companies to beneficiate, but without reliable electricity at low or at least cost, there is no business case to beneficiate.

But if advantage can be taken of South Africa’s superior sun, prime wind, rich geology and engineering experience, substantial value can be unlocked for the benefit of all South Africans.