South Africa's Ferrochrome Industry Proposes Renewables-Battery Solution to Address Eskom Crisis
A new analysis outlines a renewables-battery scenario to support South Africa's ferrochrome industry amid challenges from high electricity tariffs. The paper discusses sustaining the industry, which currently operates only four out of 48 smelters, while Eskom offers a lower tariff to producers. The authors propose a combination of interventions, including a capital subsidy for solar PV and battery systems, to reduce reliance on Eskom, estimating a required R157-billion investment. They warn against the risks of an Eskom subsidy and advocate for a clear policy path that supports both the ferrochrome sector and Eskom reforms.
Theia Market Signal Identification - AI Assisted
An analysis suggests a renewables-battery solution to support South Africa's ferrochrome industry facing high electricity tariffs, with Eskom offering a 62c/kWh rate. Currently, only four of 48 smelters are operational, producing 19% of global ferrochrome.
The proposed solution involves a capital subsidy for an 8 GW solar PV and 2 GW/24 GWh battery energy storage system, requiring R157-billion in total expenditure. The authors argue this approach avoids long-term dependency on Eskom subsidies. They recommend a policy combining fiscal measures and an export royalty for un-beneficiated chrome ore to safeguard jobs and revenue.
Comments