DRC mine signs Africa's first baseload renewable power deal

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One of Africa's largest copper mines, Kamoa Copper, located in the DRC, has secured a deal to obtain baseload power from renewable sources, a first for the continent. The power will be supplied by CrossBoundary Energy from a 222 MW solar PV system and a 526 MWh battery energy storage system. Construction of the project will start in Q2 of 2025.

• Mining companies have been moving away from fossil fuel-reliant grids to generate their own clean electricity. This has been due to rising grid costs and the growing pressure for sustainable mining and production.

• Many mines have incorporated solar and battery storage, but have been cautious about using them for baseload power (the minimum continuous electricity required) due to the intermittent nature of solar energy. However, the increased efficiency of solar panels and the decline in battery costs have now made it a viable and cheaper alternative to diesel generators for providing continuous power.

More details

• Kamoa Copper is a joint venture between Ivanhoe Mines, Zijin Mining Group, and the Government of the Democratic Republic of Congo, which owns a 20% stake in the company. The mining complex is the largest of its kind in Africa, with a copper production capacity of approximately 600,000 tonnes per annum.

• In the deal, CrossBoundary will own and operate the plant. It will provide a 30 MW dispatchable renewable baseload energy supply to the mine, offsetting fuel generators and reducing carbon emissions by around 78,750 tonnes per year. Through the power purchase agreement, Kamoa Copper will consume the renewable energy without the burden of upfront capital investment. This arrangement allows for the de-risking of the company's transition to renewable energy, allowing it to concentrate on its core expertise in mining.

• Speaking at the signing of the deal, Franck Alloghe, Business Development Director for CrossBoundary Energy, said, “This agreement represents a step change in energy supply for mining operations, indicating that diesel or HFO generators are no longer the only viable option for guaranteed baseload power generation. We look forward to executing this project with the Kamoa Copper team. Baseload from the sun is here.”

• The copper mine is not just focusing on one technology, but several. It has an existing partnership with the DRC’s state-owned power company, SNEL, to supply 240 MW from hydropower. It is also exploring the possibility of importing hydropower from Angola to further boost its energy security and operational efficiency.

• Battery energy storage and solar panels have become cheaper and more reliable, positioning them as a cost-effective alternative to the mine's existing reliance on diesel generators. Renewable baseload power is now a financially viable and, in many cases, a more economical option compared to traditional diesel-generated electricity. While the public utility SNEL offers relatively low electricity tariffs at $0.075/kWh compared to countries like South Africa at $0.090/kWh, the frequent power outages necessitate the use of diesel backup generators, which can incur significantly higher costs.

• Other mining companies in Africa have adopted intermittent renewables with battery storage, and some have chosen firm renewables like hydro power. For example, the Sukari Gold Mine in Egypt is powered by a 36 MW solar power plant, integrated with a 7.5 MW battery storage system. The Fekola gold mine in Mali has daytime operations powered by 30 MW solar PV and a 15.4 MWh battery storage system. Some, like CMOC, a molybdenum and tungsten producer in the DRC, are planning to source from hydropower and floating solar panels.

Our take

• The falling costs of renewable energy technologies, especially solar and wind power, are making battery energy storage a much more competitive alternative to traditional power sources. This offers the potential for significant cost savings over the long term.

• Being the first deal in Africa, it will set a clear model for other new companies to follow. Given that most countries provide cheaper tariffs at night to shift demand, companies can rely on sourcing renewables off-grid and switching to the grid at night when the cost is low. This can reduce energy costs and guarantee better returns.

• There is a bigger potential for such projects not only at an off-grid level but also on-grid. Utility companies can adopt large-scale renewables with batteries without fearing the cost comparison with diesel generators. This can be a starting point for switching off all diesel generators in African countries.