A mine considering introducing hybrid renewable energy in tandem with gas or diesel generation, should look beyond technology costs, to time-based factors of remaining mine life and the duration of the current power purchase agreement (PPA). These criteria are more compelling than anticipated future savings.
Amiram Roth-Deblon, head of Juwi global initiatives explained at a webinar, “In contrast to a utility-scale investment, where there is a 20- to 25-year horizon, a mine’s potential contract period reduces yearly, which can increase the power price by up to 25%. In other words, if only one year could be added to the PPA period, then the renewable electricity could be 25% cheaper.”
The hybrid solution at Sandfire Resources’ DeGrussa mine is cutting fuel costs by 20%, and lowering annual CO2 emissions by 12,000 tonnes. Roth-Deblon expects these savings will grow as battery, solar, and wind power costs shrink. However, he still believes, “the key to hybrid power project success lies in making the duration of the PPA as long as possible.”
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Image Acknowledgement: Sandfire DeGrussa Mine