Electrical Power & Protection


The value of hybrid microgrids in resolving energy issues

March 2026 Electrical Power & Protection

Working with mining companies across Africa and other remote regions, Aggreko sees firsthand how hybrid microgrids are reshaping the economics, resilience and climate performance of modern mining operations. Hybrid power is emerging as one of the fastest environmental, social and governance (ESG) and financing wins in the mining sector. It cuts emissions and costs effectively while mitigating energy security risks, improving an organisation’s bankability and investor appeal.


Etienne le Roux, business development manager at Aggreko.

These hybrid microgrids have the potential to reduce diesel consumption at remote mines by as much as 40-60%, which translates into millions in annual fuel savings and operating costs. Hybrid microgrids’ decarbonisation benefits are as vital as ore grades, since lenders, investors, and stakeholders assess both financial returns and credible transition plans

In today’s investment environment, emissions performance has become inseparable from project value, and in Africa, mining is entering a decisive new phase because the global energy transition has made it strategically unavoidable to prioritise ESG. The irony is that many of the deposits essential to this transition are isolated, far from national grids, making it challenging for companies to maintain reliable power.

The power systems enabling the supply of future-facing minerals are often anchored in diesel, which has been the default solution for decades as it’s mature, reliable and can be rapidly deployed in modular blocks, allowing for production to start quickly in remote locations.

However, today’s diesel reality carries high costs, volatile fuel logistics, and increased scrutiny as a major contributor to Scope1 emissions. The economics of energy, the tightening expectations of investors and lenders, and the growing influence of downstream buyers who now care how minerals are produced are also putting pressure on companies to change their energy approaches. Energy decisions are no longer operational alone; they are financial, reputational and strategic.

The financial exposure of diesel is also a challenge, particularly when operating off-grid. Every litre has to be trucked, piped or shipped to a site across insecure or poorly maintained transport networks, adding layers of cost and operational risk. Delivered fuel prices at remote EMEA sites frequently exceed international benchmarks once the costs of transport, security and handling are added. A World Bank study found that the cost of diesel and petrol for generators is around $40 to $50 billion a year at $0,40 to several dollars per kWh in remote locations.

The hybrid microgrid is a strategic step away from this reliance. Designed to integrate solar generation, battery storage and flexible thermal assets under advanced control systems, hybrid microgrids allow mines to displace significant diesel volumes without compromising reliability.

Hybrid solutions have also gained momentum because the economics of renewables have changed measurably over the past few years. Utility-scale solar costs in many parts of Africa have fallen below $0,08 per kWh, with some competitive procurements achieving prices as low as $0,05 per kWh. The challenge is no longer cost, it is how to deploy and optimise these assets while maintaining uninterrupted operations.

As a result, this integration quickly becomes an essential part of a mine’s investment profile. Mining’s license to operate increasingly relies on demonstrating that ESG responsibility and Scope 1 emissions are being adopted into due diligence. Emissions reduction is becoming a signal of management quality, long-term risk control and resilience, which is why mines that reduce diesel dependence are gaining improved access to sustainability-linked finance and preferential terms for offtake agreements.

A mine’s power strategy can strengthen or weaken its financing narrative, and hybrid microgrids offer one of the fastest ways to show measurable progress. Importantly, this transition is not theoretical. Working with mines across Africa, Australia, Europe and the Middle East, Aggreko has deployed hybrid microgrids that deliver immediate cost savings alongside improved reliability and lower emissions.

Aggreko has demonstrated savings of up to 40% compared with diesel-only systems, offering mines both cost stability and decarbonisation within credible and reliable energy infrastructure. With advanced controls and built-in redundancy, hybrid microgrids can achieve more than 99,9% uptime.

For emissions, a typical mid-sized mine can save 50 000 to 100 000 tons of CO2 annually, improving its carbon footprint in a way that is visible and auditable.

This transition isn’t frictionless, however. Financial and capital allocation constraints, regulatory complexities, security and supply chain risks, as well as limited expertise to manage hybrid systems, make it a careful and strategic investment. This is where working with an experienced energy partner becomes critical.

Aggreko helps mines transition by providing flexible PPAs and OPEX-driven models, fast modular deployment, and optimisation of thermal assets with added solar and battery storage. Aggreko is the step between, bringing its expertise and solutions into a simplified solution that makes it easier and faster for companies to benefit.

This is the issue facing Africa’s mining sector now. Mines can remain dependent on high-cost, carbon-intensive diesel generation, or transition to hybrid microgrids that provide reliable, low-carbon energy at lower cost. And because hybrid microgrids simultaneously address cost, emissions, reliability and investor confidence, they represent one of the few interventions capable of unlocking multiple benefits at once, rather than incrementally.

For more information contact Ruth Mweu, Aggreko, +254 722 381 069, [email protected], www.aggreko.com




Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Safety and cost-efficiency with meticulous ash management
Electrical Power & Protection
Most solid fuels produce ash and effective ash management is crucial. In South Africa, ash management ranges from sophisticated overhead storage systems and wet conveyors to manual trolley-based solutions, and AES is meticulous about how ash is handled, stored and disposed of.

Read more...
Overcoming the bottling industry’s fragmented visibility
Schneider Electric South Africa Electrical Power & Protection
Many bottling plants lack specific visibility into energy use, relying on aggregate data that obscures efficiency opportunities. Without accurate data, energy cannot be effectively managed.

Read more...
How utilities are modernising grid infrastructure with digital substations
Electrical Power & Protection
The digital substation has become a cornerstone of next-generation grid infrastructure. But what exactly makes a substation digital, and how does it transform day-to-day operations?

Read more...
Why grid modernisation will define the energy transition
Schneider Electric South Africa Electrical Power & Protection
Africa has some of the world’s strongest renewable resources. Yet more than 600 million people still lack reliable access to electricity. The path forward requires execution.

Read more...
Simplifying panel design and deployment with EtherNet/IP in-cabinet solution
Rockwell Automation Electrical Power & Protection
Rockwell aimed to eliminate challenges through an innovative EtherNet/IP in-cabinet solution that would reduce the time and resources needed for controls project engineering, testing and panel wiring.

Read more...
Building scalable hydrogen energy solutions
Siemens South Africa Electrical Power & Protection
Siemens has announced that H2 Core Systems, a startup focused on modular hydrogen-based energy systems, is using the Siemens Xcelerator platform of software and automation portfolio to design and manufacture compact, highly efficient hydrogen energy systems that generate and store clean energy where it is needed.

Read more...
Pure-air switchgear technology powers Elgin Orchards
Schneider Electric South Africa Electrical Power & Protection
Schneider Electric, together with Technoserve Medium Voltage, has implemented its RM AirSeT SF6-free medium voltage switchgear at Elgin Orchards, one of South Africa’s leading fruit producers.

Read more...
Digital substations power Africa’s transition to a smarter, more resilient grid
Electrical Power & Protection
As Africa’s energy systems face mounting pressure from rapid urbanisation, ageing infrastructure and the accelerating shift towards renewable energy, digital substations are emerging as a critical enabler of grid resilience and modernisation.

Read more...
Trafo powers mine in Pakistan with transformers for extreme conditions
Electrical Power & Protection
Trafo Power Solutions is boosting the power infrastructure of a mining project in Pakistan, being built on one of the world’s largest undeveloped copper-gold reserves.

Read more...
Optimising the future of Africa’s data centre operations
ACTOM Electrical Machines Electrical Power & Protection
Africa’s digital economy is expanding at a remarkable pace, and nearly every online service now relies on the data centres that drive the continent’s digital infrastructure. For operators, energy efficiency has become a strategic priority.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved