Falling costs make renewables more viable



LONG-TERM VALUE Dispatchable solar power and battery storage is now able to deliver substantially lower lifetime energy costs as prices fall and are incurred upfront
BIG IMPACT Higher solar penetration lowers energy costs, improves power security and reduces exposure to fuel price volatility
FEASIBLE PRICING Falling battery storage costs have enabled 24/7 renewable-energy supply
Sustainability aside, falling solar and battery costs have made renewable energy a compelling solution for reducing energy costs and improving power reliability, with dispatchable solar and battery systems expected to play an increasingly central role in powering industrial growth across Africa, says renewable energy systems developer and operator CrossBoundary Energy commercial head Franck Alloghe.
Aligned to this, CrossBoundary Energy is currently delivering the Kamoa-Kakula solar PV and battery energy storage system (BESS) baseload project in the Democratic Republic of Congo (DRC).
The development will provide 30 MW of 24/7 power to copper miner Kamoa Copper’s Kamoa-Kakula copper mining complex, through a power purchase agreement (PPA).
The project consists of a 233 MW solar PV power plant and a 526 MWh battery, delivering 30 MW of continuous dispatchable power to the mining complex.
Alloghe attributes the project’s viability to converging cost trends, noting that while solar PV costs have significantly decreased over the past decade, the “real game changer” has been the rapid decline in battery storage costs.
Citing intergovernmental organisation International Renewable Energy Agency’s 2024 Renewable Power Generation Costs report, he explains that BESS costs fell by 93% between 2010 and 2024, from about $2 571/kWh in 2010 to about $192/kWh in 2024, making it more economical to store excess daytime solar energy for night-time dispatch.
This, in turn, has unlocked significantly higher solar penetration, enabling renewables to meet a more meaningful share of a mine’s 24/7 power requirements, as well as lowering energy costs, improving power security and reducing exposure to fuel price volatility.
Continued improvements in energy density and operating performance are expected to further improve battery costs, with intergovernmental organisation International Energy Agency estimating that innovation could reduce battery storage capital costs by a further 40% by 2030, reinforcing the trend towards competitive, dispatchable solar- plus-storage solutions.
These trends are further strengthened by the context of the local power market, where the grid reliability of certain regions remains a challenge. Combined with costly, inconsistent imported power, reliable onsite power becomes significantly valuable for big, energy-intensive mining operations, explains Alloghe.
For diesel generation-reliant mines, dispatchable solar power and battery storage can now deliver substantially lower lifetime energy costs compared to diesel when factoring in transport, storage, working capital, maintenance, spare parts, security and the supply-chain risks associated with diesel, he adds.
In contrast, Alloghe says most of the costs of solar power and battery systems are incurred upfront, providing long-term price visibility and reducing operational risk over the asset life, alongside decarbonisation benefits.
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