Tharisa Mine in South Africa has begun receiving wheeled renewable electricity from power trader Etana Energy, marking the first deliveries under a long-term power purchase agreement signed in July 2024. The initial supply arrived in September and is expected to cover about 10% of the mine’s current monthly electricity demand, with larger volumes scheduled as additional wind and solar supply becomes available. The agreement is designed to cover approximately 70% of the electricity demand of Tharisa’s existing open-pit operations. Solar deliveries are expected to begin in the first quarter of 2027, followed by additional wind power later that year. The distinction matters because the initial delivery is only the first stage of a wider supply arrangement, rather than the full contracted volume becoming available at once. Renewables Now
The arrangement uses electricity wheeling, which allows power generated by renewable energy projects in one location to be supplied to a customer elsewhere through the existing electricity network. In this case, the initial wind energy comes from Mpumalanga. Tharisa does not need to build a dedicated power station at the mine to access that electricity; instead, the trader coordinates the contracted supply and its delivery through the grid. Wheeling does not mean the mine receives electricity through a physically separate network, as the power still moves through the interconnected system.
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For mining companies, these agreements offer a way to diversify electricity procurement, pursue more predictable energy costs and reduce emissions associated with purchased electricity. Tharisa has linked the deal to its target of reducing carbon emissions by 30% by 2030. The financial benefit will depend on the contract’s pricing, wheeling charges, the volume actually delivered and the mine’s overall consumption. The agreement also does not make the operation independent of the national grid or guarantee that every unit of electricity consumed will be renewable.
That distinction becomes more important as Tharisa expands its operations underground. The company expects the underground project to double the mine’s electricity demand, meaning the existing agreement’s planned coverage of about 70% of open-pit demand will not necessarily cover the enlarged operation. Tharisa has indicated that it will seek additional renewable energy supplies as its requirements grow. The development illustrates a challenge facing energy-intensive industries: securing a renewable supply for current operations is only one part of planning for future demand.
Tharisa’s deal is part of a wider shift in South Africa’s electricity market, where large businesses are increasingly contracting directly with energy traders and independent generators rather than relying solely on conventional utility supply arrangements. The model can create demand for new wind and solar projects by giving developers long-term buyers, while allowing commercial and industrial customers to diversify their supply. Its broader impact will depend on whether generation projects reach operation on schedule, transmission networks can accommodate the power and contracts remain commercially viable as electricity demand changes.
