South Africa: South32, Eskom Advance Renewable Energy Plan for Hillside Smelter

South32 and Eskom are progressing discussions on a long-term electricity solution for the Hillside Aluminium Smelter in KwaZulu-Natal, with implementation targeted from 2031.

The proposed framework—now at an advanced stage—aims to secure competitively priced, lower-carbon power for the energy-intensive operation when its current supply agreement expires.

Renewables integration focus

A joint working group has been established to assess mechanisms for integrating renewable energy into the national grid, supported by firming capacity to ensure reliability. The initiative is being developed within South Africa’s existing regulatory framework.

Beyond meeting Hillside’s power needs, the model under consideration could have wider application across Eskom’s customer base, potentially accelerating grid decarbonisation while maintaining supply stability.

Industrial and economic significance

The Hillside smelter remains one of southern Africa’s largest industrial assets, supporting:

• 3,650 direct and indirect jobs
• ~29,000 jobs across the broader economy

It is also a key supplier of aluminium to South Africa’s downstream manufacturing sector, linking energy policy directly to industrial competitiveness.

Decarbonisation and cost pressures

The move reflects increasing pressure on energy-intensive industries to balance cost competitiveness with decarbonisation targets. Securing stable, affordable electricity remains critical for smelters, which are highly sensitive to power pricing and supply reliability.

South32 COO Noel Pillay said the partnership is focused on ensuring the long-term viability of the operation, particularly as it marks 30 years of production.

System-wide implications

Eskom CEO Dan Marokane noted that the collaboration could strengthen the resilience of South Africa’s electricity system by introducing new models for renewable integration paired with firm capacity.

If successfully implemented, the initiative could serve as a template for large industrial power users in South Africa—demonstrating how blended renewable energy solutions can support both decarbonisation and industrial growth.