Green Economy Journal Issue 56

PUBLISHER’S NOTE
Dear Reader,
The economy generally and the mining sector in particular, continues to
be hamstrung due to generation shortfalls leading to loadshedding and
curtailments. And of course, we all know power will increase in cost by 18%
in April, and in addition Eskom is seeking a structural billing change that will
allow them to charge an expanded grid use fee.
The imperative to move to self-generation has never been stronger, and
many large energy users are already procuring solar PV and wind-generated
power from IPPs or establishing such projects at their sites. But uptake of
battery energy storage at the large scale remains muted due to cost.
Batteries are expensive, but so is being curtailed, and leading IPPs are
working on models to offer large-scale battery energy storage systems along
with renewable generation. We expect offers to emerge in the near future
where these hybrid systems can be made available at a cost/kWh that will
match Eskom tariffs. This represents a massive leap forward for autonomous
energy for mining and industry.
Watch this space!
Publisher
EDITOR’S NOTE
In the shift to more sustainable industries, be they in mining, manufacturing
or electricity generation, South Africa needs to ensure that it, and the region,
is not left behind. Southern Africa is uniquely positioned to benefit from the
opportunities in the green economy.
The Department of Forestry, Fisheries and the Environment says on page 14
that this will require a paradigm shift in the approach to development and
government priorities so that the contribution to greenhouse gas emissions
can be mitigated and the region can begin the long road to adapting to the
impacts that lie ahead.
Shocks in the oil and natural gas markets, followed by those in agricultural
commodities, have dominated the headlines since sanctions were imposed
on Russia. But the preoccupation with these shocks has obscured how
sanctions are affecting the metal markets.
Sanctions could have longer-term consequences for everything from the
sustainability of mining operations to the functioning of the manufacturing
base. These supply chain disruptions are compounding the price pressures
associated with the global shift to an electric economy (page 16).
There’s broad agreement that lithium supply is heading for a major increase
in 2023 as a wave of expansions or new projects get up and running. The
divisive issue is whether less-established producers will be able to deliver
in full, defying a range of regulatory, technical and commercial challenges.
Read about the unreal pace of lithium’s expansions on page 36.
Taking a step back, it is easy to dismiss the hurdles the supply chain faces
when looking at exponential sales data. While it is expected that the capacity
of current and future giga factories will be enough to support 36-million
battery-electric cars per year by 2030, looking further upstream, particularly
at lithium, there is uncertainty. What is becoming clear is the downsizing of
battery capacities per vehicle while maintaining vehicle ranges will be key.
Read more in Electric cars on the 2023 highway on page 38.
Lithium-ion technology does not offer long-duration energy storage
capabilities, however. Our article on page 42 categorises the options for longduration
energy storage excluding pumped hydro and hydrogen. Hydrogen
is explored on page 48.
Enjoy this issue!
Alexis Knipe
Editor
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Economy
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EDITOR:
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Alexis Knipe
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Gordon Brown
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Alexis Knipe
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REG NUMBER: 2005/003854/07
VAT NUMBER: 4750243448
PUBLICATION DATE: February 2023
www.greeneconomy.media
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WHEN WE INVEST IN
INFRASTRUCTURE PROJECTS
THAT ADDRESS
CLIMATE CHANGE,
WE BEND THE ARC OF HISTORY
TOWARDS SHARED PROSPERITY
The DBSA’s Climate Finance Facility (CFF) is dedicated to increasing climate related investment in Southern
Africa by playing a catalytic role using a blended finance approach. The CFF will use its debt capital, co-funded
by the Green Climate Fund, to fill market gaps and target green infrastructure projects in the mining and private
sector. This is part of our commitment towards the mitigation and adaptation to climate change, promoting a
greener economy and driving sustainability in the mining sector.
We are DBSA. Building Africa’s Prosperity
www.dbsa.org • +27 11 313 3911