Mining operations have become significant adopters of renewable energy. What started as pilots and demonstrations has scaled to utility-grade installations that meaningfully change the energy profile of mining operations.

The Mining Energy Challenge

Mining is energy-intensive. Crushing, grinding, hauling, and processing consume enormous quantities of power. Historically, this energy came from:

Grid connections: Where available, mines draw from electricity grids. In many jurisdictions, grid power includes substantial fossil fuel generation.

Diesel generation: Remote mines often rely on diesel generators. Fuel must be transported over long distances, adding cost and logistics complexity.

Gas-fired generation: Where natural gas is available, gas turbines or reciprocating engines provide power more economically than diesel.

All these options have drawbacks – cost, emissions, logistics, or some combination. Renewable energy increasingly offers an alternative.

Solar and Wind Economics

The economics of renewable energy have improved dramatically:

Solar PV costs: Utility-scale solar costs have fallen by 90% over the past decade. In sunny locations, solar is now among the cheapest electricity sources.

Wind economics: Onshore wind similarly offers competitive economics in suitable locations.

Hybrid configurations: Combining solar and wind can reduce variability, with different generation profiles partially complementing each other.

Storage integration: Battery storage addresses intermittency, storing excess generation for use when renewables aren’t producing.

For remote mines paying high diesel costs, renewable alternatives can deliver immediate economic benefits alongside environmental improvements.

Mining Deployments

Major mining companies have deployed substantial renewable capacity:

Rio Tinto has invested heavily in renewables, including a major solar project at the Gudai-Darri iron ore mine in the Pilbara – one of the largest mining solar installations globally.

BHP has signed significant renewable power purchase agreements and is investigating on-site generation for various operations.

Fortescue has committed to net-zero operational emissions by 2030, with renewable energy central to this target.

Gold Fields operates one of the world’s largest off-grid hybrid renewable systems at its Granny Smith mine in Western Australia.

These deployments demonstrate that utility-scale renewables can work in mining contexts.

Integration Challenges

Integrating renewables into mining operations requires addressing several challenges:

Intermittency: Solar produces only during daylight; wind varies with weather. Mining operations need consistent power around the clock.

Demand variability: Mining loads can change rapidly as equipment starts and stops. Renewables must integrate with this variable demand.

Grid stability: Mining operations need stable frequency and voltage. Renewable-heavy systems require careful management to maintain power quality.

Space requirements: Solar and wind installations need substantial land area. Mine site layouts must accommodate renewable infrastructure.

Construction coordination: Building renewable capacity while maintaining mining operations requires careful planning.

The Role of Storage

Energy storage is critical for high-penetration renewable systems:

Battery storage: Lithium-ion batteries provide rapid response to load changes and can store solar generation for evening use. Costs have fallen substantially.

Hybrid systems: Batteries combined with remaining diesel or gas capacity ensure reliability while maximising renewable use.

Longer-duration storage: Emerging technologies may enable multi-day storage, further reducing fossil backup requirements.

The pattern at many operations involves solar and wind providing base generation, batteries handling short-term variability, and retained gas or diesel generation providing backup and peak support.

Economic Benefits

Renewable investments deliver multiple economic benefits:

Energy cost reduction: For diesel-dependent operations, solar can cut energy costs substantially. Even grid-connected operations may achieve savings.

Cost predictability: Renewables have minimal fuel costs. Once installed, generation costs are largely predictable over the asset life.

Hedge against fuel prices: Renewable capacity reduces exposure to diesel and gas price volatility.

Carbon cost avoidance: Where carbon pricing exists or is anticipated, renewables avoid future costs.

Community and investor relations: Renewable investment demonstrates environmental commitment valued by stakeholders.

Emission Reductions

For mining companies with emission reduction targets, renewable energy is often the largest available lever:

Scope 2 reduction: Renewable electricity reduces emissions from purchased power.

Scope 1 displacement: On-site renewables replacing diesel generation reduce direct operational emissions.

Electrification enablement: Renewable capacity supports electrification of mobile equipment, multiplying emission reduction potential.

Many mining companies have announced net-zero commitments. Renewable energy is typically the foundation of pathways to achieve these targets.

Technology Evolution

Renewable technology continues to improve:

Solar efficiency: Panel efficiency continues to increase, reducing the area needed for given capacity.

Tracking systems: Single and dual-axis tracking increases solar production, particularly in tropical latitudes.

Wind technology: Larger turbines with higher hub heights access stronger, more consistent winds.

Battery chemistry: New battery chemistries offer improved energy density, cycle life, and safety.

Hybrid controllers: Sophisticated control systems optimise the interaction between renewable generation, storage, and conventional backup.

Looking Ahead

The trend toward renewable energy in mining will continue:

Higher penetration: Current installations typically achieve 30-50% renewable contribution. Future systems may reach 80-90% with appropriate storage.

Green hydrogen: For very high renewable penetration, hydrogen storage may enable seasonal energy shifting that batteries can’t economically achieve.

Renewable-powered processing: Energy-intensive processing steps may be scheduled to coincide with peak renewable generation, maximising use of zero-cost energy.

Electric fleets: As haul trucks and other mobile equipment electrify, on-site renewables will power them directly.

Mining’s energy transition is underway. Economic and environmental drivers are aligned, and technology capability continues to improve. The question is no longer whether mines will adopt renewables, but how quickly and to what extent.