Edith Kikonyogo, managing director, Aggreko Africa, explains why the case for hybrid power has never been stronger

Brent crude prices have recently moved sharply, rising from US$92 to over US$113 per barrel in a single week. The International Energy Agency’s March 2026 Oil Market Report calls this the largest supply disruption in the history of the global oil market, with nearly 20 million barrels per day of crude and product exports affected by conflict in the Middle East and disruptions to the Strait of Hormuz.

For mining operations across Africa, shifts like these carry practical implications for operating costs. Energy is closely tied to almost every stage of the mining value chain, from crushing and milling to ventilation, dewatering, and processing. For off-grid operations, where on-site diesel generation keeps production running, oil price volatility hits production costs directly. Delivered fuel prices at remote mine sites across Africa already exceed international benchmarks once you factor in transport, security, and handling. When global crude surges 40% in a matter of weeks, as it has this quarter, the financial exposure compounds quickly.

This is not a new challenge, but the pace and scale of disruptions are accelerating. Energy strategy is becoming an increasingly important part of mining resilience and long-term planning.

The risk of a single-fuel strategy

Thermal generation continues to play an important role in many remote mining power strategies. Diesel and gas-powered generators deliver the firm, dispatchable capacity you need to keep operations running around the clock. In many cases, thermal generation remains a practical requirement for maintaining reliable baseload capacity.

The issue is not thermal power. Over-reliance on a single fuel source can increase exposure to cost and supply volatility outside your operational control. When every kilowatt-hour depends on diesel alone, you are not just running a mine, you are running a fuel logistics operation, exposed to currency swings, transport bottlenecks, and geopolitical shocks that have nothing to do with your orebody or your team’s capability.
In parts of East Africa, fuel prices have surged more than 75% since the start of 2026. In South Africa, petrol could see a price increase of over R5 per litre in April, while diesel is expected to see a R8.60 increase per litre. For a mine consuming millions of litres annually, these swings can add millions of dollars to your cost base, with zero increase in output. That is not energy security.

Hybrid power: cost predictability through diversification

One practical response to fuel volatility is to complement thermal generation with additional energy sources. It is to reduce the share of your energy mix that is exposed to volatile commodity prices.

Hybrid power solutions are designed to support a more balanced and diversified energy mix. Solar photovoltaic arrays, battery energy storage, and flexible thermal generation work together under advanced control to give you a more balanced, more predictable energy mix. Solar delivers low-cost energy during daylight hours at a fixed cost. Batteries smooth your load profile and capture excess renewable generation. Thermal assets provide firm backup and peak capacity, running more efficiently because they are no longer carrying the full baseload alone.

The economics speak for themselves. Past regional data shows solar-plus-storage can deliver electricity at US$0.06 to US$0.20 per kilowatt-hour, compared with US$0.15 to over US$0.50 per kilowatt-hour for diesel in off-grid contexts. Across multiple projects in Africa, well-designed hybrid power solutions have displaced up to 40% of diesel consumption while maintaining round-the-clock reliability. The Middle East and Africa microgrid market, valued at over US$10bn today, is projected to exceed US$21bn by 2030. Mining is a leading driver of that growth.

These outcomes are increasingly being demonstrated across operating sites in demanding environments, proven in some of the continent’s most demanding environments.

Beyond cost: the strategic case for acting now

Energy security in mining increasingly extends beyond fuel pricing considerations alone. It comes down to several factors that are becoming increasingly relevant for executive and board-level consideration.

Operational resilience is improved by hybrid power solutions, as they build redundancy into your energy supply. If one source is disrupted, others compensate. Advanced controllers manage load balancing in real time, and well-designed solutions routinely deliver uptime above 99.9%. For a mine where every hour of downtime means lost production, that resilience matters.

Financial predictability improves when a significant share of your energy comes from solarits fuel costs are zero once installed. That creates a natural hedge against fluctuations in fossil fuel prices and provides your finance team with a more stable cost base for long-term planning. Mines with lower, more predictable energy costs also unlock better access to sustainability-linked finance and stronger terms from offtake partners.

Licence to operate remains key - institutional investors, international lenders, and major commodity buyers now factor Scope 1 emissions and renewable energy adoption into their due diligence. A mid-sized mine transitioning to hybrid power can cut CO₂ emissions by 50,000 to 100,000 tonnes annually. That is not just an environmental metric. It is a commercial advantage that strengthens your position across the value chain.

What holds mines back, and how to move past it

If the case is this strong, why has adoption not been faster? While adoption challenges exist, a growing range of solutions is helping address them.

Capital allocation is the most common constraint. You rightly prioritise investment in core operations: expanding the pit, upgrading processing, and extending mine life. Large upfront capital spent on energy infrastructure competes with those priorities.

Alternative commercial models, including Opex-led structures, can help reduce upfront capital requirements. Power purchase agreements and Opex-led structures give you access to hybrid power solutions with minimal upfront investment. You pay for power on a per-kilowatt-hour basis, typically lower than your existing diesel cost from day one.

Operational complexity is another concern. You are experts in extracting and processing minerals, not in managing integrated energy solutions that combine solar, storage, and thermal generation. This is where working with an experienced energy partner can add value. The right energy partner brings lifecycle management: operations, maintenance, remote monitoring, fuel mix optimisation, and the ability to scale your energy solution as production evolves.

Regulatory environments across African jurisdictions vary. Navigating permitting, environmental compliance, and grid interconnection (where applicable) requires local knowledge and established on-the-ground relationships.

A practical path forward

The current oil price environment has made the cost of inaction hard to miss. But decisions around hybrid power are often informed by long-term trends rather than short-term price movements. It should be driven by a clear view of where the world is heading.

Africa holds over 40% of global reserves of cobalt, manganese, and platinum, as well as growing deposits of lithium, graphite, and rare earths. Demand for these minerals will intensify as the global energy transition accelerates. The mines that extract them will operate for decades. Your energy strategy should reflect that time horizon.

At Aggreko, we have spent decades powering mining operations in some of Africa’s most remote and challenging locations. We understand that reliability is non-negotiable, that every site has its own constraints, and that the shift from diesel-only to hybrid power must be practical, staged, and proven at every step. We design, deploy, and optimise modular hybrid power solutions that pair thermal and renewable assets in configurations you can scale over time, backed by flexible commercial structures and operational support across the continent.

Increasingly, the discussion is shifting from whether hybrid power can work to how to implement it effectively. Many projects are already demonstrating the viability of hybrid approaches. The question is how quickly you can move to protect your operations from the next disruption, the next cost surge, the next shift in investor expectations.

Mines exploring hybrid approaches today may be better positioned for long-term cost stability and resilience.

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Cementation Africa is drawing on its extensive expertise in shaft sinking and underground mining to advance work at the Mindola shaft, part of Mopani Copper Mines in Kitwe

The project is set to support the long-term sustainability of the Nkana mine while enhancing overall operational efficiency.

The project scope includes the construction and installation of a permanent headgear, followed by the rope-up and commissioning of winders. These steps will enable detailed 3D scanning of the shaft, helping to identify alignment deviations and determine the structural reinforcement required to ensure safe and efficient hoisting operations. The work programme also covers the installation and commissioning of an overland conveyor system.

According to Ben Adendorff, Cementation Africa’s in-country executive for Zambia, the immediate priority is preparing the Mindola shaft for production by sliping and equipping the remaining 500 metres.

“To determine the exact degree of misalignment, Cementation Africa will complete a 3D scan of the complete shaft,” remarked Adendorff. While another contractor raisebored this particular shaft, Cementation Africa successfully completed the sinking and equipping of Mopani’s Synclinorium and Mufulira Henderson shafts over a decade ago. The 1,280 m Synclinorium shaft, with a 7 m diameter, was sunk between 2011 and 2014 before being equipped for commissioning and handover in 2016. Meanwhile, the 1,580 m Mufulira Henderson shaft, with a 6 m diameter, was commissioned in June 2020.

“Our current work at Mindola includes the removal of the sinking headgear and winders, and the installation of a new permanent headgear, after which we can rope-up and commission the new winders,” he explained. “This will allow us to scan the shaft from top to bottom with specialised equipment, including the length of shaft already equipped above a depth of approximately 1,000 m.”

This process will verify the accuracy of existing steel guide structures that direct conveyances within the shaft and allow for the correction of any identified issues. Below the 1,000 m level, the remaining 500 m of the shaft will be sliped and lined to maintain a precise vertical alignment for safe conveyance movement.

“We will the proceed with the equipping of the shaft and construction of the loading box steelwork at the shaft bottom,” he says.

Cementation Africa’s track record across complex shaft-sinking projects in southern Africa continues to reinforce its standing in the region. As noted by Hercilus Harmse, engineering services executive at Cementation Africa, the company has delivered major projects including the 1,200 m shaft at Palabora Mining Company, which reached final depth in 2024, and the 2,750 m ventilation shaft at South Deep mine.

“Many of our projects are conducted in environments where there are poor ground conditions or where extensive de-stressing of rock is required,” Harmse said. “We bring this experience into our designs and execution ensuring that we can apply innovative solutions - using our fleet of specialised equipment for rigging, winding and shaft sinking.”

Safety remains central to the company’s operations, as highlighted by new business director Graham Chamberlain. Over the past 12 years, Cementation Africa has recorded more than eight million fatality-free shaft-sinking hours.

“This is the result of consciously building a safety culture on every site and prioritising safety in all our planning and design work, using industry experience to learn from every incident,” commented Chamberlain. “Particularly with equipment that is critical to safe operations, we develop and apply duplicate systems so there is always a backup. With winders, for instance, we ensure that an electronic system will be duplicated by a mechanical system in case of failure.”

Adendorff adds that beyond its technical expertise, the company has made a lasting social impact through its long-standing presence in Zambia. Initiatives include the construction of a school for the deaf in 2016, now supporting more than 100 children, as well as an orphanage feeding programme.

“Our history in Zambia has also made us an employer of choice, as everyone knows our value system and the respect with which we treat our employees,” he concluded.

The International Finance Corporation (IFC) has launched a new trade finance guarantee scheme to support Angolan businesses in association with local banks

The facility is provided to Banco de Fomento Angola (BFA) under the Global Trade Finance Program (GTFP), an initiative of the IFC, the World Bank’s private finance arm.

It is open to firms including small and medium enterprises (SMEs) to secure the inputs they need, deliver to customers on time and sustain and create jobs across key value chains.

By de‑risking trade transactions and improving the reliability and speed of cross‑border payments, the facility will strengthen supply chains, support more diversified growth, and deepen Angola’s integration into regional and global markets, the IFC said in a statement.

“Trade finance keeps businesses going,” said Makhtar Diop, IFC's managing director.

“Working with BFA, we’re helping Angolan firms access vital imports, trade more smoothly across borders, and create jobs, strengthening supply chains and the wider economy.”

Trade finance remains a “binding constraint” for many African firms, the IFC noted.

The continent faces an estimated trade finance gap of roughly US$100bn to US$120bn annually, with SMEs disproportionately affected, despite representing over 90% of businesses and accounting for about 80% of employment in Africa.

The new trade finance facilityis expected to unlock trade, boost businesses and support jobs in Angola, where access to foreign exchange and limited correspondent banking relationships have complicated cross-border payments, making it harder for firms to source inputs and fulfil orders.

These constraints impact sectors like food and agriculture, where Angola imports a substantial share of its consumption needs and firms require steady access to inputs; recent assessments indicate Angola imports over half of its food, underscoring the importance of reliable trade finance to keep supply chains flowing.

Through the Global Trade Finance Programme, IFC’s guarantees will back BFA’s issuance of trade instruments, such as letters of credit, trade‑related promissory notes and bills of exchange, and standby instruments including bid and performance bonds and advance payment guarantees.

By de‑risking cross‑border transactions, the facility is designed to help BFA grow its trade portfolio, broaden its network of counterparties, and expand access to trade finance for Angolan firms across sectors, including agribusiness, manufacturing and essential goods.

The goal is to strengthen Angola’s integration into regional and global value chains while relieving pressure points that often hinder SMEs from scaling and creating jobs.

“We are confident this partnership will have a positive impact not only on communities but also on the Angolan economy,” said Luís Roberto Gonçalves, BFA’s CEO.

It means BFA will have more instruments at its disposal to finance SME enterprises in productive sectors of the economy, boosting food production and distribution, enhancing food security and creating jobs.

“This partnership reaffirms BFA’s commitment to scaling solutions that advance the development of Angola’s financial system and reinforce the trust our clients and partners place in us.”

It also aligns with the World Bank’s strategy to grow access to finance in Angola's private sector as a means of unlocking economic growth.

Reliable trade finance will ensure access to fertiliser and seeds for farmers, packaging and raw materials for manufacturers, and spare parts and equipment for service providers.

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NewSpace Systems has officially opened a new 5,200 m² manufacturing facility in Somerset West, South Africa, now the largest commercial space component and subsystem manufacturing site on the African continent

The expansion significantly increases the region’s capacity to support the global satellite supply chain.

The purpose built facility is designed to meet the high volume production requirements of modern satellite constellations. NSS, Africa’s largest exporter of space utilised hardware, supports the majority of commercial spacecraft manufacturers globally.

The development marks an important step in the company's transition from a specialised component provider to a high cadence industrial manufacturer. Since construction began in October 2024, NSS has focused on scaling its Guidance, Navigation, and Control product lines. This growth has been driven by the rapid expansion of Low Earth Orbit constellations, which require flight proven hardware that can be produced at scale without compromising quality. NSS products, including sun sensors and reaction wheels, are currently used on spacecraft weighing up to six tons.

The facility features advanced infrastructure designed to meet stringent IPC and ECSS aerospace standards. It includes a 1,260 m² ISO 14644 1 certified cleanroom, a 120 m² engineering laboratory for research and development, and specialised areas such as Helmholtz coil calibration zones for magnetically sensitive hardware, dark rooms for optical testing, and thermal and vibration testing environments. Production is supported by 6S LEAN certified assembly lines to ensure consistent and precise manufacturing.

“Big, beautiful, and built for space manufacturing,” said Tanya Lerm, CEO of NewSpace Systems.

“Every corner of this cleanroom reflects our commitment to quality, reliability, and mission success. From the controlled air environment to the precision our customers demand, every aspect of this facility was engineered to deliver hardware that performs flawlessly in space.”

By consolidating design, qualification, and manufacturing in one location, NSS maintains vertical integration, enabling competitive pricing while adhering to international standards.