Mines should embrace solar power to cut energy costs.
The comment comes from a review by Energy and Mines that claims solar can offset the energy costs of mining.
Most noteworthy is that energy costs can be up to 15 per cent of a mine’s input costs.
“Some mines in Australia operate in incredibly remote locations, and the cost of electricity is upwards of $300/MWh,” Australian Renewable Energy Agency (ARENA) CEO Ivor Frischknecht said.
ARENA launched the Regional Australia’s Renewables Program in 2013. It provides funding to projects that use renewable energy solutions in remote locations.
“Supply chain issues, including having road access cut off for weeks at a time, are not uncommon. These mines are also located in areas with the best solar resources in Australia, and among the best in the world,” Mr Frischknecht said.
“Renewables can deliver cheaper and more predictably priced power, and reduce fuel supply risk to these sites.”
Solar power cut energy costs in ore processing
The mining sector will take the biggest hit as it extracts deeper, lower-quality ore that needs more processing.
As a result, industry is turning to low-carbon renewable energy to meet this demand.
Solar power has the advantage of generating close to the load and has a predictable generating curve, the review states.
Paired with modular energy storage units available in the market, the combination has been described as a ‘silver bullet’ to cut back on energy costs.
Solar helps mines achieve the Renewable Energy Target
It’s predicted that the industry’s reliance on expensive diesel generators and electricity from distant generation sites will force it into taking up solar energy as an alternative.
For example, the Nova nickel mine in WA has a solar array powering its operations.
Meanwhile, the federal Renewable Energy Target (RET) aims to generate 23.5 per cent of the nation’s power from renewables by 2020.
States also have their own goals. South Australia plans to boost renewables from 43 per cent of total generation to 50 per cent by 2025.
