Name of the Project
South Deep solar photovoltaic (PV) power plant.

Location
Carleton, in western Gauteng, South Africa.

Project Owner/s
Gold Fields.

Project Description
Gold Fields is proposing the construction of a 40 MW solar power plant at its South Deep gold mine.

The project will represent between 20% and 25% of the average consumption of the mechanised, underground South Deep mine. At night, the operation will default to the national electricity grid.

The operation could reduce carbon emissions by about 100 000 t/y.

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Gold Fields has been trying to get the 40 MW solar power project approved since 2017.

Latest Developments
The National Energy Regulator of South Africa’s (Nersa’s) electricity subcommittee has recommended that the regulator approve Gold Fields’ high-profile licence application for its 40 MW PV project.

The decision was made during a virtual meeting of the subcommittee on February 5.

The licence approval is likely to be on the agenda for Nersa’s next meeting, scheduled for February 25. The final agenda for the meeting has not yet been published.

Nersa hosted a public hearing into Gold Fields’ application in late 2020, after a South Deep joint venture had lodged an application for the development of a solar PV facility in the magisterial district of the West Rand.

Gold Fields CEO Nick Holland has noted and welcomed the decision by the subcommittee, and is awaiting the outcome of the full Nersa meeting on February 25: "Our plans are ready to commence the project once all approvals are in hand”.

The application has garnered much attention, as it has highlighted the challenges associated with securing a generation licence in South Africa.

These licensing difficulties are not unique to Gold Fields and have prompted calls for South Africa to lift the licensing exemption threshold from 1 MW to 50 MW to help facilitate electricity generation investment by large electricity consumers.

In an important recent development, Eskom has expressed its support for lifting the exemption, with the proviso that such a move is accompanied by tariff reform that fairly compensates the utility or the municipality for providing back-up grid services.

Eskom CEO Andre de Ruyter has argued for a tariff structure reflective of the fact that Eskom will play the role of a “giant battery” to these distributed plants, which will mainly be developed on the back of variable renewable-energy technologies.

De Ruyter’s comments have been widely supported by the mining industry, as well as other large electricity consumers, represented by the Energy Intensive Users Group of Southern Africa.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Gold Fields, Sven Lunsche, tel +27 11 562 9775 or email info@goldfields.com.