Seriti Group is leading South Africa’s energy transition with a balanced approach that integrates both renewable energy and coal. The company, known for its coal operations, is now venturing into renewable energy through Seriti Green. The company’s 155 MW wind farm project in Mpumalanga, South Africa’s energy hub, represents a significant step in this direction.
Seriti Group CEO Mike Teke and Seriti Green CEO Peter Venn emphasized that a blend of coal and renewables is essential for South Africa’s energy future. “We need both fossil fuels and renewables,” Teke stated, highlighting the necessity of policy alignment to drive this transition.
The wind farm project is more than just an energy initiative—it is a critical component of a just energy transition in Mpumalanga. The region, heavily reliant on coal, requires careful planning to ensure that communities are not left behind. Venn stressed the importance of involving local stakeholders in the transition process, noting that existing infrastructure must be leveraged to integrate renewables effectively.
“The energy heartland of South Africa must embrace both coal and renewables,” Venn said. The wind farm, located near Seriti’s New Denmark mine, is part of a broader circular economy that repurposes resources like water for sustainable energy development.
Seriti’s wind farm is set to make a substantial impact on South Africa’s carbon footprint. Venn pointed out that the project will nearly eliminate Seriti’s Scope 2 emissions related to electricity production. The wind farm is expected to generate 3,000 GWh annually, significantly reducing the country’s carbon emissions.
The wind project is part of Seriti’s broader strategy to diversify its energy offerings. The company plans to balance its energy portfolio with 750 MW of wind power and 150 MW of solar power over the next three years. This diversification is vital as South Africa strives to reduce its reliance on coal while maintaining energy security.
For South Africa to fully benefit from the energy transition, clear and aligned policy frameworks are essential. Teke emphasized the need for coordination between the Department of Minerals and Petroleum Resources and the Department of Electricity and Energy. “These departments must align to ensure a sustainable energy future for South Africa,” he said.
The restructuring of Eskom, South Africa’s state-owned utility, into generation, distribution, and transmission units, is also crucial. The creation of the National Transmission Company of South Africa represents a significant step toward a more efficient energy sector.
Additionally, Seriti Green’s partnership with Standard Bank and RMB, who hold shares in the company, highlights the importance of financial collaboration in advancing renewable energy projects. This partnership enables Seriti to secure funding and drive forward its renewable energy goals.
Municipal reform is another critical element in South Africa’s energy transition. Venn argued that a smarter distribution grid is necessary to optimize energy use and reduce overall demand. “Municipalities must reinvest in the electricity network to ensure it supports the transition,” he said. He also pointed to Canberra, Australia, as an example where smart distribution has lowered electricity costs and increased renewable energy adoption.
Seriti Green’s 155 MW wind farm is just the first phase of a larger 900 MW renewable energy plan. With the support of a robust policy framework, Seriti Green is confident in its ability to deliver these projects. The project also includes 800 MWh of storage capacity, which is crucial for balancing supply and demand in the renewable energy landscape.
The wind farm project is also helping to transition workers from the coal sector to renewables. Ten percent of Seriti Green’s workforce comes from coal, and the company is committed to retraining these employees for the renewable energy sector. This effort is part of Seriti’s broader commitment to reducing carbon emissions and supporting South Africa’s transition to a low-carbon future.
Once completed, the wind farm will bring Seriti closer to achieving carbon neutrality, helping to mitigate its Scope 1 and Scope 2 greenhouse gas emissions. The project is a key component of Seriti’s strategy to play an active role in South Africa’s just energy transition.
Source: Mining Weekly
