The promise of hybrid renewables
March 2024
Electrical Power & Protection
By Aggreko, Africa, Middle East and Asia.
The dramatic decline in the cost of renewable energy sources like solar and wind over the past decade has made them competitive alternatives for mining operations seeking to lower energy costs and increase sustainability.
According to the International Renewable Energy Agency (IRENA), the global weighted average levelised cost of electricity (LCOE) for solar PV declined by 85% between 2010 and 2019. Onshore and offshore wind have seen LCOE declines of 49% and 35% respectively over the same period. These cost reductions make wind and solar financially attractive options compared to more expensive fossil fuel sources.
Beyond cost competitiveness, renewables offer sustainability benefits that are increasingly valued by mining companies and demanded by investors and regulators. Solar and wind generation creates no direct carbon emissions, allowing mining firms to reduce their carbon footprints. This supports environmental goals, and helps companies prepare for potential carbon regulations and taxes. Renewables can also provide energy for remote mining sites without reliance on diesel fuel that must be trucked from long distances.
The modular and scalable nature of solar and wind lends itself well to mining operations looking to add generation capacity incrementally. However, the level of complexity in integrating them into the energy mix with traditional power generation systems should not be underestimated. Given their unpredictable nature, renewables alone may not provide 24/7 baseload power, but they can notably increase the level of reliability of a power generation system.
Hybrid energy microgrids
A hybrid energy microgrid combines renewable energy, like solar and wind, with energy storage and generators to create a self-sufficient, resilient energy system for mines, with or without the presence of the electric grid.
Thanks to the intelligent control systems that help optimise the microgrid’s assets, and the support of batteries or other storage solutions, renewable energy can be smoothly integrated into the energy mix, reducing the utilisation of diesel generators and an unreliable grid.
This hybrid approach allows mines to manage costs and gain energy independence. Even when grid power is cut, the microgrid keeps essential operations running. These smart, microgrids are modular, and can start small and then scale up as needed.
Key benefits of hybrid microgrids are:
• Utilise cheap, clean renewables to reduce fuel expenses.
• Maintain critical loads during grid failures using diesel and batteries.
• Add or remove components easily as needs evolve.
• Operate autonomously when islanded from the main grid.
• Increase energy efficiency with real-time monitoring and controls.
• Enable staged investment matched to energy priorities.
By mixing clean and conventional resources, mines can gain efficiency, savings and supply resilience. Modular microgrids are an essential building block for the mine of the future.
With a proven track record in delivering energy solutions that are resilient and support your mine energy transition journey, Aggreko can offer energy services that are customised to specific mining needs, by leveraging its knowledge and experience in delivering projects on a global scale.
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