Globally, mining is well-known as an energy-intensive sector, a situation that is further aggravated by a heavy reliance on fossil fuels, explains consulting firm Economic Development Solutions MD Janine Espin.

She elaborates that there is an increasing global urgency to shift toward decarbonising to avert climate change by slowing global warming, which must be balanced with mining companies having electricity and operations running more efficiently and cost-effectively than before.

The balancing act takes place against a backdrop of inconsistent electricity supply and rising commodity prices, which leaves mining operators stuck at an impasse.

“How do they integrate renewable energy into their power solutions to create their own power certainty in an economic climate in which budgets are tight and investment is hard to come by?” Espin asks.

The Cure for Load-Shedding Blues
A mix of cost-effective renewable energy and battery storage combined with the reliability of thermal energy has seen the popularity of hybrid power plants climb, and is directly proportional to the increased frequency and intensity of load-shedding.
For mines with the capacity to operate off-grid, particularly in remote locations, diesel is the primary fuel for power generation. A hybrid energy solution entails combining upwards of two different energy sources, usually one renewable source such as solar, with the other a typical energy source such as diesel.

Espin explains that, by adding another renewable-energy source and battery storage into the mix, mines are able to reduce reliance on diesel, which ensures that the hybrid energy systems can significantly reduce operating, maintenance and infrastructure capital costs over the long term, while improving reliability and uptime.

Properly integrated hybrid systems are capable of switching seamlessly between modes of power storage and generation as necessary. It is also now possible to retrofit solar systems with battery storage, which means that hybrid power solutions can be implemented in phases to spread out the costs of installation, while bringing alternative energy generation more in line with the costs of conventional generation.

Smaller companies looking to avoid large capital outlay can use portable, flexible power solutions on a serviced rental basis which is more cost effective than outright equipment purchase, making provision for additional power modules to be added or removed in response to the changing needs of the mine’s life cycle.

Bigger Capacity Makes for a Better Business Case
Larger mining companies in South Africa that undertake the building of a solar photovoltaic (PV) plants are no longer limited by the 10 MW threshold capacity as this was increased to 100 MW last year. This means there is now the possibility to recoup some of their costs by selling the energy they are generating in excess of their own requirements to surrounding industries or to the municipality in which they are situated, provided the municipality has a clean audit and the correct procedures have been followed.

Mines can essentially become independent power producers (IPPs), and it is possible to take this one step further, with the mine offering the land through a lease-agreement mechanism and partnering with an external provider that will ultimately be the IPP, thereby alleviating the mine from incurring the cost of development.

“Making hybrid energy more accessible for smaller mines isn’t possible as long as it’s necessary to import all the components,” Espin notes.

With both the Risk Mitigation Independent Power Producer Procurement Programme and the Renewable Independent Power Producer Procurement Programme (REIPPPP) Round 5 Bid Window, it has become apparent that the local capacity to manufacture PV panels and modules needs to be developed, as designated local content is very specific with regard to solar panels.

The challenge is maintaining momentum once government has set the wheels in motion for bids and the development of the renewable-energy industry as a whole.

Communities can Benefit from Hybrid Energy
It is important to remember that it is not just the mines that benefit from the establishment of a hybrid power plant, and the local community should, Espin notes, be given the opportunity to participate.

There will be short-term job opportunities in the construction phase, as well as opportunities for the local supply of goods and services. While there are no predetermined rules and regulations around building a PV plant or any hybrid solution at a mine, local content and local procurement should be prioritised.

In this respect, it is vital to engage with communities and make them understand that even though it is a power generating plant that is being built on a mine, it is not subject to the Mining Charter or other mining regulations, such as social and labour plans. It will be necessary, however, to comply with environmental legislation and permitting requirements in the relevant municipal area, says Espin.

The Road to Recovery
Hybrid energy is a huge opportunity for the renewable energy industry to expand and partner not only with mines, but also any large-scale manufacturing industry, to facilitate a growing project pipeline that sits outside of what government issues through the REIPPPP.

This is the ideal time for private partnerships to take matters into their own hands and start producing and distributing power in a more energy efficient, mutually beneficial manner so that all industries, including mining, can work toward the economic recovery the country “so desperately needs”, while reducing its carbon footprint, she concludes.