The demand for electricity in South Africa continues to increase and there is no certainty that State-owned power utility Eskom will be able to meet that demand at a cost-effective price, says international business law firm Fasken partner and finance and projects head Ashen Jugoo.
It is highly likely that there will be continued development in the battery-storage sector over the next few years.
This trend, coupled with the reduced price of small-scale embedded generation, makes it attractive for mining companies to establish their own power generation plants, he adds.
“This will allow for security of supply and reduce the costs of electricity.”
At this year’s Joburg Indaba, Fasken would like to address the success stories and challenges associated with captive plants.
“We have worked on financing solutions where a number of projects have been financed within a single portfolio.
“We also expect that there will be a remarkable increase in such projects,” states Jugoo.
Further, Fasken is a premium sponsor of the 2019 Joburg Indaba and has found it “important and compelling” to be an active participant in this conference.
“Being an active participant in the industry is not only about the financial aspect – it is more about a meaningful contribution to the industry through a physical presence,” notes Fasken senior partner Lucas Moalusi.
The company intends to share its views on the status of the local mining industry, and how the industry should unfold to assist the sector in returning to its “glory days”, he asserts.
Moalusi believes that events, such as the Joburg Indaba, have created a platform to have an honest and uncensored discussion about matters affecting the mining industry.
“The challenge of guaranteed electricity supply is quite critical to the success of the mining industry; this needs to be resolved sooner rather than later,” Moalusi concludes.