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Renewables gaining traction

DINESH BULDOO
Off-grid mines present one of the biggest business opportunities in renewable-energy solutions for mining companies

DINESH BULDOO Off-grid mines present one of the biggest business opportunities in renewable-energy solutions for mining companies

24th February 2017

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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Off-grid mines present one of the biggest business opportunities in renewable-energy solutions for mining companies, says engineering professional services consulting firm WSP | Parsons Brinckerhoff transmission, distribution and power director Dinesh Buldoo.

The mining sector is one of the largest users of electricity, expanding into new and often very remote locations across Africa, but much of the continent is still underdeveloped and remote, with little access to basic services such as power, he points out.

Many mining companies are beginning to realise that the full potential of standalone power solutions can be provided by renewables to meet the needs of power-intensive mining operations amid the numerous, compounding and complex challenges such as access to energy, market volatility and capital.

Initially, the adoption of renewable-energy solutions was slow, but has gained popularity among mining companies as it addresses many of these challenges, Buldoo states. “Mining companies are actively looking for solutions that will drive operational efficiencies at their mine sites while assisting them in meeting some of their social commitments to stakeholders.”

He explains that the key business models being explored and used worldwide – with different degrees of success – are a self-generating model, where a mine funds, builds and operates a renewable-energy power plant on site; and a self-generating and powering communities model, where a local community near the power plant receives support – either from government or the mining company – to construct a transmission line.

There is also a net metering model, where mines can sell any excess capacity generated by the renewable-energy power plant into the local grid; and an industrial pool model, where a group of industrial companies enter into a long-term power purchase agreement and collectively fund, build and operate a shared power plant.

Of these models, Buldoo indicates that the self-generating and powering communities models are gaining traction in Africa, owing to increasing pressure on mining companies to reduce their carbon emissions and impact on the natural environment, as well as from stakeholders to increase their socioeconomic dividends through reinvestment.

With much of Africa’s existing power grid infrastructure aged and insufficient, it is unable to safely and reliably support the net metering model, while poor cooperation between industrial companies regarding control and operational preferential use rights in terms of infrastructure deters the adoption of the industrial pooling model.

Buldoo says, prior to renewable energy taking off in Africa, mines traditionally relied on fossil-based fuel sources – particularly diesel or coal – based on what was available or could be sourced with relative efficiency.

Being dependent on the availability of diesel fuel is problematic, as it is not easily available in some African countries and needs to be sourced, which can result in severe repercussions for a mine’s productivity.

Fluctuations in fuel prices can also significantly impact on a mine’s ability to manage its costs sustainability, expounds Buldoo, adding that these factors are the impetus behind mining companies looking for renewable solutions, including wind, solar and hybrid power.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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