Mining Industry can cut energy cost by turning to solar power

A review by Energy and Mines claims that using solar power can offset the energy costs of mining.

“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.

Most noteworthy is that energy costs can be up to 15 percent of a mine’s input costs.

Launched in 2013, ARENA started the Regional Australia’s Renewables Program, 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.”

The mining sector will take the biggest hit as it extracts deeper, lower-quality ore that needs more processing. As a result, the industry is turning to low-carbon renewable energy to meet this demand.

Off grid 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.

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.

In the meantime, the Renewable Energy Target (RET) aims to generate 23.5 percent of the nation’s power from renewables by 2020.

South Australia also plans to boost renewables from 43 percent of total generation to 50 percent by 2025.


Picture of Positive Off-Grid Solutions

Positive Off-Grid Solutions

Excellence in Stand Alone Power Systems

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Off-Grid Solar Power Solutions for Agriculture and Farming

Agriculture is the backbone of our society, providing imperative food, raw materials, and employment. However, many farming operations, particularly in remote areas, face challenges related to energy access. Off-grid solar offers a sustainable and efficient way to power agricultural activities,

Off-Grid Solar Energy: Embody the Sustainable Living Ethos

In a world increasingly aware of environmental impacts, sustainable living has become more than just a trend—it’s a necessity. Off-grid solar energy systems allow you to embody the principles of sustainable living, promoting self-sufficiency, reducing carbon footprints, and minimising reliance

Off-Grid Solar Energy for Emergency and Disaster Preparedness

In an era marked by the increasing frequency of natural disasters and emergencies, the need for reliable power sources during such events has never been more critical. Off-grid solar energy systems offer a robust solution, providing dependable electricity when the

Winter Effective Solar Hours Across Australia:

  1. MPPT power measured by Max Solar Input/Max charge capability