JOHANNESBURG (miningweekly.com) – In the light of clean, cost-efficient, stable electricity supply being critical, Palabora Mining Company is partnering with Mzansi Energy to develop a 132 MWp solar photovoltaic plant and battery energy storage system capable of storing 310 MWh of electricity.

Mining Weekly can report that the Marula Green Power plant is heading for two-stage implementation – construction followed by operation and maintenance.

Financial close is likely in the second quarter of 2023, with operational commencement in the second quarter of 2024.

The current timelines are preliminary at this stage and may change based on the outcome of the detailed feasibility study.

Once deployed, the project will be one of South Africa’s largest private independent power producers (IPPs) and is intended to provide the mine with both security of supply and affordable energy, which will result in significant cost savings. 

Wessel Wessels, CEO of Journey2Green – a founding partner in Mzansi Energy – says a long-term power purchase agreement will be finalised between the parties at the end of the detailed feasibility study, which is expected in May next year. Mzansi Energy will design, finance, install, operate and maintain the plant for 12 years. 

The plant will be based within the municipal jurisdiction of Ba-Phalaborwa, Limpopo, just outside Namakgale township, and about 20 km from the mine, a location chosen to allow for direct supply to the mine without connection to the Eskom grid.

The project promises cost-efficient, secure, green energy and significant social upliftment for Ba-Phalaborwa communities in Limpopo province.

GREEN ENERGY SUPPLY

Tumi Mogoera, associate director of Summit Partners – another founding partner in Mzansi Energy – says the project is one step towards helping South Africa address its electricity challenges. “Additionally, the Marula Green Power plant will contribute to our nation’s Just Energy Transition (JET) net zero carbon emissions strategy,” Mogoera points out.

Mzansi Energy has partnered with the local traditional authority as per the study performed for identification of the ideal location subject to final environmental-impact assessment.

The authority will host the solar power plant on its land and enter a long-term lease - the long-term lease is conditional on specific socio-economic benefits for all local Ba-Phalaborwa communities in areas such as business opportunities for small enterprises, skills transfer and development as well as job creation. 

During the implementation phases, many direct and indirect employment opportunities will be created through the Marula Green Power project and the local suppliers in Ba-Phalaborwa region will also be exposed to available business opportunities. Based on initial estimates, the project is expected to create about 500 to 750 fixed-term employment opportunities during construction and 35 permanent jobs during the operation and maintenance over the 12-year period. 

Mzansi Energy has developed a community development roadmap to stimulate the local economy through skills development and employment of locals. This applies during the development, construction and operation of the solar plant in the Ba-Phalaborwa area. Built on these solid community relationships, Mzansi Energy’s corporate social responsibility roadmap includes employment creation, allocation of funds for skills development, youth development and community development initiatives, and agrivoltaics farming to improve food security and reduce poverty among local people. 

Agrivoltaics uses, in combination, a portion of the land for solar photovoltaic power generation and agriculture. The detailed plan shall be consulted with the stakeholders to ensure that the process unfolds in a fair manner for the benefit of the local communities.