Mining Companies Can Help Turn On The Lights Across Sub-Saharan Africa, Says World Bank
The report cites the example of Guinea, where mining contributes more than half of the countrys total exports and provides more than 20 percent of all fiscal revenues but where national electrification rates are among the lowest in Africa. For instance, by joining a number of mines together and contracting an independent power producer to generate and transmit electricity to the mines through a high voltage mini-grid, the mining companies would save an estimated $640 million in self-supply costs while bringing affordable and reliable energy to at least 5 percent of Guineas peopl
By choosing grid-based and cleaner power sourcing options, which are typically priced lower than self-supplied electricity from diesel or heavy fuel oil, mining companies will be able to meet their electricity needs while also helping to light up the community,said Anita George, Senior Director of the World Banks Energy and Extractives Global Practice. In turn, countries will benefit from improved competitiveness of the mining companies, greater tax revenues from mines and more job opportunities for local people.
The report states that though there are risks associated with power-mining integration for example from falling commodity prices or a shortage of transmission links regulatory and financial solutions can help mitigate these risks. A key element is for countries across Sub-Saharan Africa to continue with their power sector reforms and create an attractive operating environment for IPPs, including renewable energy developers.
The report: The Power of the Mine: ATransformative Opportunity forSub-Saharan Africa was funded by the Energy Sector Management Assistance Program (ESMAP) and the South African Fund for Energy, Transport and Extractives (SAFETE).