Renewable energy transforming mining industry energy use
The mining industry uses tremendous amounts of energy in its operations every year, but that is changing due to concern over the volatility of diesel prices, increased pressure from government policies, and a greater need to reduce energy costs and carbon footprint.
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Credit: Greg Goebel/Wikimedia Commons |
The mining industry is under continued pressure from shareholders and external stakeholders to reduce dependence on traditional energy resources. In countries where mining represents a significant percentage of gross domestic product, it can also be a significant draw on the country's electricity grid infrastructure. These external and internal pressures are combining to provide an expansion of market opportunities for renewable energy providers to work with mining companies. In fact, renewable energy technologies will supply between 5 and 8 percent of the world's mining industry power consumption by 2022, according to Navigant Research, presenting expanded market opportunities for those who delve into providing renewable energy to their industrial customers.
More remote operations, rising energy prices, and the desire to reduce mining companies' carbon footprints have created a growing consensus in the mining industry that renewable energy at mine sites -- both grid-tied and off-grid -- is not only feasible but also necessary. The portion of energy consumption in the mining industry supplied by renewable energy, which is currently less than 0.1 percent, could skyrocket to 8 percent by 2022.
"A number of mines are already utilizing large-scale wind power, but these sites were chosen based on extreme needs and/or ideal wind characteristics," said Kerry-Ann Adamson, research director with Navigant Research. "The industry is now at a point where it can move forward into larger and more complex deployments, potentially including energy storage technologies, which would enable a higher percentage of renewable use per mine site."
Wind power will account for the majority of deployed renewable energy assets by 2022, with nearly 516 MW of capacity, according to the research, followed closely by solar, with 493 MW of installed capacity. Asia Pacific will see the highest level of renewable capacity, with 505 MW. In all, more than 1,438 MW of renewable energy capacity for mining operations will be deployed worldwide by 2022, the report predicts.
Even through the global economic downturn, interest in the deployment of renewables has remained. The industry has reached a tipping point where it is transitioning from using solar, wind, and other renewable energy technologies in demonstration projects to an increased focus on larger scale deployments. When combined with the increased use of innovative finance mechanisms, such as power purchase agreements, the use of renewable energy in the mining industry will pick up significantly in the medium term.
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