Exxaro CEO sees 'great opportunity' in SA’s energy security plan

South Africa's energy crisis has threatened the nation for years, with load shedding becoming a frustrating norm for citizens and businesses alike. However, as the government unveils a solid strategy for energy security, hope is on the horizon. In a detailed discussion with CNBC Africa, Dr. Nombasa Tsengwa, CEO of Exxaro, shared her insights on the Energy Security Plan and the opportunities it presents for the company. Exxaro, a pioneer in renewable energy investment, stands poised to leverage its existing infrastructure to expand its green energy capacity and play a significant role in South Africa's energy transition. Dr. Tsengwa highlighted Exxaro's early foray into renewable energy a decade ago, where the company invested in wind farms in the eastern Cape. This strategic move positioned Exxaro to seize the opportunities presented by the government's latest plan. By expanding its distributed generation capacity and exploring new avenues for renewable energy growth, Exxaro aims to contribute to decarbonization efforts while bolstering its business portfolio. The conversation also delved into the challenges of navigating regulatory hurdles and infrastructure constraints in the energy sector. Dr. Tsengwa emphasized the importance of policy alignment and stakeholder engagement in accelerating the energy transition. While progress has been made, she noted that red tape and transmission capacity issues continue to pose challenges that require government intervention and industry collaboration. With a focus on scaling up green energy investments, Dr. Tsengwa outlined Exxaro's commitment to expanding its renewable energy portfolio. The company's vision includes a target of three gigawatts of green energy capacity, with a strategic emphasis on supporting South Africa's energy needs and partnering with Eskom to enhance grid stability. While the transition away from coal remains a long-term goal, Exxaro recognizes the importance of aligning its business strategy with the country's evolving energy landscape. Looking ahead, Dr. Tsengwa discussed Exxaro's plans to diversify its mining operations into minerals crucial for the green economy, such as copper, box-eyed, and manganese. By repurposing its mining capabilities and leveraging its renewable energy expertise, Exxaro aims to play a pivotal role in the transition towards a sustainable energy future. The company's strategic vision underscores its commitment to environmental stewardship, social responsibility, and long-term value creation. As South Africa embarks on a transformative journey towards energy security and sustainability, Exxaro stands at the forefront of innovation and collaboration in the energy sector. With a clear roadmap for growth and a steadfast commitment to driving positive change, Exxaro is poised to shape the future of energy in South Africa and beyond.