Rosh Pinah Solar Park (RPSP) has inked a N$90 million, 15-year Power Purchase Agreement (PPA) with Rosh Pinah Zinc Corporation, in an agreement that will provide a reliable and sustainable power source for the mine.
The agreement offers substantial advantages for both parties and carries profound implications for the mine’s operational and environmental outlook, encompassing the supply of 15MW of solar photovoltaic (PV) energy to meet the electricity demands of Rosh Pinah Mine.
Additionally, the Rosh Pinah 2.0 expansion, made possible through the agreement, is expected to boost Rosh Pinah Zinc Corporation’s throughput by 86%, leading to increased exports and economic growth.
Emesco’s Commercial Director Pieter Rossouw said the core of the agreement revolves around the delivery of 15MW of solar PV-generated electricity to the Rosh Pinah Mine.
“Currently, the solar park has operationalised 5MW of this capacity since its commencement in July this year. This move aligns with the broader objective of transitioning towards renewable energy sources, markedly reducing the mine’s carbon footprint,” he said.
Rossouw noted that under the PPA, the Rosh Pinah Mine becomes the off-taker of the solar energy produced by RPSP.
“This arrangement not only secures a reliable and sustainable power source for the mine but also lays the groundwork for significant cost savings over the 15-year period,” he said.
Some of the positive impacts on Rosh Pinah Mine include greenhouse gas reduction.
“One of the most striking impacts of this transition is the substantial reduction in greenhouse gas emissions.The implementation of the solar PPA promises to curtail emissions by an impressive 6% for Rosh Pinah Mine,” said the Director.
Furthermore, beyond its environmental benefits, the agreement carries substantial financial advantages.
“Over the course of the 15-year contract, the Rosh Pinah Mine is set to experience an 18% reduction in energy costs. This translates into substantial savings, making the operation more financially robust and resilient,” he said.
With the financial savings accrued through the PPA, Rosh Pinah Mine is primed to advance its expansion plans.
Rossouw emphasised that the RP 2.0 project, which seeks to enhance the mine’s milling capabilities, is now poised for swift realisation.
This project not only signifies increased production but also underscores the long-term economic sustainability of the mine.
The PPA includes a notable 30% contestable quantity clause, ensuring a flexible approach to electricity procurement for RPZC. This flexibility is critical for adjusting to evolving energy needs.
Financially, the PPA is set to bring substantial benefits to RPZC, with an 18% reduction in electricity costs projected over the 15-year contract period. This cost efficiency translates into a more robust bottom line.
“The financial savings facilitated by the PPA will play a pivotal role in advancing the RP 2.0 expansion project. This project holds the potential to enhance RPZC’s milling capabilities and significantly increase production capacity,” he noted.
Similarly, the agreement entails the development of a transmission line infrastructure that spans three kilometers, operating at 66KV.
Rossouw said “this is a 50-year asset that will remain in place, fostering long-term investment and energy reliability.The economic implications of the PPA are substantial, with job creation being a central highlight. The region of Rosh Pinah is poised to experience a surge in employment opportunities, countering unemployment woes.â€
Meanwhile, RPSP itself has contributed to job creation, with 117 individuals employed during the construction phase. Additionally, two permanent positions and ten seasonal roles have been created, fostering local employment.
As the solar park ramps up its operations, Rossouw asserts that there will be a surge in domestic electricity generation, supporting local energy needs.
