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Solar for mines

How solar for mines helps to reduce operational costs and achieve a lower carbon footprint

Reliance on third-party infrastructure a significant risk for mines

The outlook for the mining industry in South Africa was a mixed bag in 2018 with bulk commodity prices continuing to rise from their lull at the beginning of 2016, while precious metals continued to struggle. Cost increases have put the mining industry under significant pressure and although price plays a crucial role in profitability, there are large fixed-cost elements associated with mining. Thus maintaining and ensuring optimum production levels plays a significant role in achieving profitability. 

This is why reliance on over-stretched third-party electricity suppliers such as Eskom can compromise profitability. In PwC’s annual publication highlighting trends in the South African mining industry it was reported that one of the significant subcategories driving risk is reliance on third party infrastructure with the cost and availability of electricity and water still a concern.

Mining facilities that typically rely on diesel electricity can use a solar microgrid to reduce the overall cost of energy, increase energy resiliency, thus ensuring control of their energy and power requirements. SOLA’s energy storage services department has considerable experience in combining battery storage solutions and existing generators in microgrid systems ensuring a continuous, uninterrupted electricity supply which is integrated with all other power sources.

Namibia and Botswana considering a 20-year, 4.5 GW solar push

‘The market for electricity produced by the mega-solar projects in Botswana and Namibia includes 12 other countries in the region that could be connected via new and/or upgraded transmission infrastructure,’ – WEF

The World Economic Forum’s (WEF) Global Future Council on Energy, has revealed that the governments of Botswana and Namibia are planning to develop 5 GW of solar capacity over the next two decades. Namibia and Botswana are considered perfect candidates for solar owing to their high solar radiation, strong legal and regulatory environments, suitable land availability and potential to host a low-cost, efficient electricity market to meet rising demand in the region. It has been suggested that this ambitious project, if completed, could lead to Namibia and Botswana exporting power to South Africa.

Botswana, a founding partner in a responsible mining initiative

Reducing carbon emissions is part of a global trend in the mining industry. Bloomberg reported last month that an explosive demand for renewable energy is expected to drive a global rush of exploitation, thus Botswana, the US, Australia and Peru are founding partners in an initiative to encourage responsible mining of rare earths and other minerals used in renewable energy projects such as solar panels, wind turbines and car batteries. 

Botswana’s mining industry contributes a third to the country’s GDP and 50% of tax earnings, and although the last quarter has seen a dip, economic growth is projected to pick up to 4.6% in 2020, supported by ongoing structural reforms aimed at diversifying the economy. It is perfectly primed to implement solar energy storage for mines owing to high solar radiation, the remote location of its mining facilities, weak grid supply and reliance on diesel.

Projected economic growth in Namibia in 2020

The IMF reports that Namibia’s economy will return to growth in 2020 after contracting for three straight years, though a failure to implement structural reforms could contribute to sluggish growth. Namibia has the second highest solar irradiation levels in the world, thus making solar energy storage for mines an appealing option.

No longer a question of if, but when

‘Industries that aren’t moving towards zero-carbon emissions will be punished by investors and go bankrupt’

Industries that aren’t moving towards zero-carbon emissions will be punished by investors and go bankrupt, warned the governor of the Bank of England, Mark Carney, last week. Thus renewable and storage technologies present the perfect solution by reducing energy costs while improving power quality and lowering carbon emissions.

The climate crisis will have a real financial effect on all major industries. Last Tuesday Carney told large corporations that they had two years to agree to rules for reporting climate risks before global regulators devised their own and made them compulsory.

Energy autonomy or supplementing grid supplied energy with embedded energy generation are both solutions to optimising production costs and reducing carbon footprint. Solar PV is both a cost-effective and decentralised form of energy, making it perfect for mines and other large scale energy-producers choosing to supplement their supply.

 Off-grid solar provides the ideal energy storage solution for mines. Remote locations, weak grid supply and reliance on diesel provide the optimal business case for solar PV microgrid. To test if your mining facility is suited to making the switch to off-grid make use of SOLA’s user-friendly mining tool.

Is solar energy suitable for my business?

You may have heard of solar PV – perhaps you even know other businesses that are using it. However, you might be wondering if solar PV is relevant for your business. It is worth considering that various factors affect the overall costs and tariffs of solar PV systems. 

Is solar PV right for my business?

At the outset, the best way to determine if your business could benefit from solar PV is by asking a few simple questions:

  1. Are you based in an area with good irradiation (solar resource)?
  2. Do you have a good quality, spacious roof or available open land near to your business?
  3. Do you use the bulk of your energy during the day?
  4. Are your reliant on diesel generators to keep your operation running during power cuts or because of lack of grid access?

If you answered “yes” to any two of the above, solar PV is definitely worth considering for your business. The aspects mentioned above are explored in more detail below. 

1. Good solar irradiation

It goes without saying, but solar PV performs better under conditions with great solar irradiation. If you are based in Africa, you are lucky: Africa has some of the best solar irradiation in the world, so it is generally a no-brainer. However, there are a few factors that might influence the quality of irradiance, which could affect the overall PV system size and thus the cost.

  • Weather: Weather can influence the quality of the irradiance. Things like extreme heat and humidity can affect how well solar modules perform, making irradiance quality vary in different geographic locations.
  • Pollution: pollution in the form of smoke and gases or particles can lower irradiation; it can also collect on solar modules and reduce their efficacy. 
  • Shading: Factors such as large buildings, highways and trees can shade roof areas during the day, causing the solar PV to stop producing. If your solar PV engineering firm is reputable they should be able to carry out an extensive shading analysis. 

2.Roof space and quality

Rooftop solar PV is often the most cost-effective solution for Commercial and Industrial businesses. As such, the size of your business’s roof, including the type of roof and if it is structurally sound, is an important factor to consider when scoping out the feasibility of solar PV.

If your roof is not suitable for mounting solar panels, it is important to consider if there is land nearby that could house a ground-mounted solar PV solution. All of these factors can affect the cost, and therefore the feasibility, of solar for your business. 

3.Energy Demand and use

An essential factor to evaluating the efficacy of a solar PV system is energy demand and use. Two factors come into this: the business’s peak power (kVA) requirements, as well as its electricity use (kWh). If the business is a high energy consumer, especially if it runs 7 days a week, the costs of solar will likely be much cheaper. However if the business has large amounts of electricity usage at night, for example, it might make the cost of the system more expensive. 

4.Diesel generator usage

In Africa, many business operations rely on diesel generators in order to keep the power on, either due to weak or unreliable electricity grids, or because they have no access to the grid. In general, electricity generated by diesel is very expensive, making a solar PV microgrid, including batteries, a great way to save and cut back on this. 

Procuring solar: your options

If you are convinced that solar PV sounds like a good intervention, remember that the following options exist to procure solar PV for your business:

  • Buy solar energy directly – enter into a solar PPA in order to use solar PV electricity without any capital expenditure. The solar PV system belongs to SOLA, and you simply pay for the electricity that you use. The longer the term of the PPA, the lower the tariff over the system’s lifespan (20 years).
  • Build a solar PV system – purchase a solar PV system that your business will own, and simply pay for annual maintenance and upkeep. SOLA will design and construct the PV system for you, ensuring that it performs as predicted, and will maintain the system going forward.

Is solar feasible for my business?

If you spend over R100 000 (US$ 7000) on electricity per month, fill in some basic information in our Solar Feasibility Tool. We will evaluate the efficacy of solar for your business free of charge, and provide you with a few simple options to go forward, should you wish to proceed.