Anglo, EDF Renewables plan up to 5 GW ecosystem in S Africa

Anglo American Plc (LON:AAL) and the renewables unit of France’s EDF (EPA:EDF) plan to develop a regional renewable energy ecosystem (RREE) in South Africa, including the addition of up to 5 GW of capacity, to benefit the mining multinational’s local operations.

The two parties have entered into a memorandum of understanding (MoU) outlining a partnership designed to abate the largest single source of Anglo American’s Scope 2 emissions – its current grid supply in South Africa. The objective is to fulfil Anglo American's operational electricity requirements in the country with 100% renewable power by 2030.

The partnership is seen to result in the deployment of 3 GW to 5 GW of solar, wind and energy storage, both on- and off-site, over the next decade, the announcement says.

Anglo American is pursuing carbon neutrality across its global operations by 2040 and thanks to an already secured sourcing of renewables for all its operations in South America, it expects to reach 56% renewables supply globally by 2023.

The mining group anticipates a number of partners to provide equity financing for the RREE to complement debt funding arranged by the partners.

The EDF group itself has established a strategy to double its net installed renewables capacity, including hydropower, around the world from 28 GW in 2015 to 60 GW in 2030.

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