South Africa’s mining industry is undergoing a fundamental shift as it grapples with rising electricity costs, carbon taxes and the need for energy security. Newly established renewable energy trading platform Discovery Green, which falls under the umbrella of financial services group Discovery, is emerging as a key player in providing large-scale renewable-energy solutions to the sector.

Discovery Green operates as an energy trader, but unlike traditional models, it procures renewable energy from leading independent power producers (IPPs) and structures it into a product that businesses can buy. According to Discovery Green head Andre Nepgen, this model addresses the volatility of renewable-energy.

“The key difference with renewable energy is that you pay for what is generated, not what is consumed,” explains Nepgen. “That volatility presents a risk, and Discovery is very good at managing risk, volatility and uncertainty. Our model converts renewable energy into a predictable and manageable product for businesses.”

Unlike many renewable-energy solutions that only cover 30% to 50% of a company’s energy needs, Discovery Green has developed proprietary models that significantly increase renewable-energy penetration to 90%.

Energy Security

Loadshedding remains a pressing issue for South Africa, but Discovery Green’s model focuses on long-term solutions rather than immediate relief.

“In the short term, wheeling isn’t a loadshedding solution,” says Nepgen. “Loadshedding is a shortfall issue managed at a national level and wheeling adds more national generation. In the long run, the more renewable energy that gets wheeled into the grid, the less loadshedding South Africa will experience.”

Discovery Green prioritises wind energy owing to its day and night generation profile, making it a useful alternative to solar power.

Landmark Partnership

Meanwhile, one of Discovery Green’s major breakthroughs is its partnership with platinum producer Impala Platinum (Implats), which has committed to the largest renewable energy deal by a South African mine to date.

“We’re supplying power to Implats’, with the refineries business being 90% powered by renewables,” says Nepgen. “This will significantly reduce their carbon footprint and lower costs, as the electricity is more affordable to what they currently pay.”

What sets this deal apart is its shorter duration compared to the typical 20- to 25-year renewable contracts. “Implats wanted a shorter-term arrangement, which is uncommon at this scale. We were able to accommodate that because of the scale of our plants, diversification and our ability to take a strategic long-term market view,” adds Nepgen.

The Rising Cost of Electricity and Carbon Taxes

Electricity prices continue to rise, and Discovery Green has provided research insights into this trend. According to Nepgen, there are two key drivers: the increasing marginal cost of renewable energy as businesses layer on more, and the expected carbon tax impact.

“Many businesses initially invested heavily in solar,” he explains. “The challenge is that solar only generates power during the day, while businesses need electricity at night. Wind power is the only viable complement, but integrating it efficiently is complex.”

Carbon taxes are another looming challenge. From 2026, these taxes are expected to increase, adding an estimated 30c/kWh by 2030. “For mining companies and exporters, this is a major concern. They will either pay carbon taxes locally or face border tariffs when exporting to regions like the EU. It makes more sense to manage these costs within the local economy,” says Nepgen.

For mining companies, energy security is non-negotiable. Power outages lead to costly shutdowns and production losses. Nepgen emphasises that renewable energy provides a financial hedge against future cost increases.

“Even if a 50% renewable solution is cheaper today, a 90% renewable solution is often more valuable in the long term because it offers greater protection from rising electricity prices and carbon taxes,” he explains.

Despite growing interest, scaling renewable-energy projects remains a challenge. While South Africa has an estimated 135 GW of shovel-ready renewables projects, only a fraction—about 0.5%—actually proceed to construction each year due to financing, permitting and execution hurdles.

“Building large-scale renewables plants is an expensive, complex and time-consuming process requiring billions of rands in investment,” Nepgen notes. “This is why strategic partnerships and long-term planning are essential.”

As one of the largest electricity consumers in South Africa, the mining sector is under increasing pressure to decarbonise. Beyond cost savings, investors and global buyers are scrutinising carbon footprints more than ever.

“By providing high-percentage renewable-energy solutions, we help mining companies reduce emissions, stabilise electricity costs, and maintain long-term competitiveness. The industry is undergoing a fundamental shift, and renewable energy is at the heart of that transformation,” says Nepgen.

Discovery Green’s innovative approach to renewable energy trading is setting a new benchmark for how mining companies navigate the evolving energy landscape, securing both sustainability and cost efficiency for the future.