Almost a dozen new renewable energy projects were announced in 2019. Many others were already under development, and more are under negotiation or could be announced soon.
Miners finally bit the renewable energy bullet this year as its economics and technical feasibility, particularly at remote locations, became too compelling to ignore. Key advantages were lower cost, supply security, and independence from the grid. The attitude on renewables switched from “wait and see” to “let’s act now.” The Energy and Mines World Congress in Toronto provided valuable insight into this trend, according to an article by Thomas Hillig, Managing Director at THEnergy, in energycentral.
The growing shift in favor of renewable energy has its roots in Australia and Sub-Saharan Africa – regions suffering from insufficient grid supply but advantaged with abundant solar resources. Adding to momentum was the growing international movement to reduce carbon footprints. Unsurprisingly, the move to decarbonize soon extended from power generation to the consumption of fossil energy in mining vehicles and machinery.
New technical advances in renewables marry wind with solar power, using their negatively correlated output synergistically — this reduced dependence on battery storage.
Shorter-term power purchase agreements (PPAs), such as those accompanying redeployable solar solutions, now enable miners to match mine life with the use life of power assets. These are an excellent midpoint between short term fossil arrangements and long-term PPAs.
Going forward from 2019, the outlook for renewable energy in mining appears to be very bright.
Read the energycentral article HERE.
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