POWER FOR MINES
independently tested to pass accelerated life and
stress tests beyond industry standards.
Caterpillar’s solar PV offering is a key
component of the Cat Microgrid technology suite,
an innovative lineup of power systems that adds
environmentally friendly solar panels, state-of-
the-art energy storage, and advanced monitoring
and control systems to Caterpillar’s traditional
line of reliable power generation equipment,
including HFO, natural gas and diesel generator
sets, switchgear and automatic transfer switches.
The Cat Microgrid technology suite is designed to
reduce fuel expenses, lower utility bills, decrease
emissions, and reduce the total cost of
ownership while increasing energy efficiency in
even the most challenging environments.
“A key differentiator in Caterpillar’s offering is
the Cat MMC, which keeps loads continuously
energised with high-quality power at the lowest
cost. It manages the flow of power from every
source in the system, including the main grid
when connected. The Cat MMC determines
optimum recharge times for the energy storage
systems while managing power during times
when solar energy is not available.”
The MMC also uses Cat Connect technology for
real-time collection and communication of on-site
performance data that can be monitored and
analysed remotely. “The economic viability of
remote mining operations depends on the cost-
efficient generation of power,” said Tom Frake,
Vice President of the Global Power Solutions
Division for Caterpillar. “Caterpillar’s solar
technologies provide a scalable, s ustainable
power solution that significantly reduces fuel
consumption while delivering the reliable power
needed to support mining sites.”
Renewable and storage technologies
ABB says “for off-grid mining in particular,
renewable and storage technologies present an
ideal opportunity not only to improve the mine’s
environmental footprint, but also to reduce
energy costs while improving power quality.
“For off-grid mines operating in remote
locations, the cost of electricity can reach
$300/MWh and consume up to 15% of mining
revenues. Lowering energy costs will not only
increase viability of mining operations today but
also help future proof them against rising fuel
costs.
“To test the viability of storage plus
renewables for brownfield mining sites, ABB
considered four scenarios that were optimised
using HOMER Pro2 microgrid modelling software.
The benefits compared include:
n Fuel saving (and associated reduction in CO 2
emissions & maintenance costs)
n Reduced Levelised Cost of Electricity (LCOE)
with an attractive IRR
n Improved power quality.
“The results showed that the highest
36 International Mining | JANUARY 2018
BESS + solar PV benefits for an off-grid remote brown-field mine (~5 MW demand example)
investment IRR of 36% was possible by installing
a Battery Energy Storage System (BESS) where
the main benefit comes from improved generator
operational efficiency that results in a reduction
in maintenance costs. Alternatively, by combining
this with solar PV generation we can additionally
substitute expensive diesel fuel with cost
competitive solar PV thereby delivering the
largest reduction in fuel consumption (28%) and
LCOE (11%), while maintaining a healthy IRR
(16%). Additional power quality benefits provided
by a BESS such as reduced stress on the
electrical installations across the mine site and
associated reduction in maintenance cost and
down-time have not been modelled in this
study.”
Finally, ABB’s analysis shows that the most
important factor impacting system design is the
price of delivered diesel followed by the cost of
the installed solar PV system.
Two conclusions can be drawn from the
business case:
n Mining companies have the opportunity to
start transforming their mines today as solar
PV now delivers a lower LCOE than diesel
n Deployment of solar PV + BESS is an
excellent hedging solution against diesel
price increases and/or future carbon costs.
ABB concludes that “powering remote mines
with diesel generators provides a proven and
reliable energy source, but leaves the mine
operator vulnerable to diesel price fluctuations,
fuel supply risk as well as uncertainty around
future carbon taxes. It also fails to capitalise on
the economic and operating benefits that BESS
and solar PV offers today and potential cost
savings from carbon taxes in the future. The
figure presents an overview of the economic
Up to 28% reduction in fuel and CO 2 possible
when combining diesel with BESS and solar PV
benefits and capital requirements of the four
scenarios tested.
“In some cases, mine operators may prefer the
incremental hybridisation route as it allows more
gradual changes to the operating system and
strategy. This analysis shows that it makes sense
to consider BESS in the first step without
additional renewable energy capacity as this
offers the highest IRR. Ideally, the use of a
flexible BESS, such as the ABB PowerStore,
would allow the storage capacity to be increased
if renewable energy systems are later added.
“In terms of renewable options, wind has also
proven itself to be effective in the mining sector,
particularly in those areas with high wind
resource and low solar resource. Due to
historically lower costs, high scalability and
relative ease to gain approvals in remote
locations, wind has accounted for 59% of
installed renewables in mining to date. Where
mine lives are shorter than 10 years new
business models allowing for relocatable solar
PV to be installed could be considered. Once you
have found the right renewable choice for your
location, combining with a BESS can provide
additional cost-savings that mining operators can
benefit from today.”
For more detail, see http://register.e.abb.com/
ABBMicrogridBusinessCaseforMining
Hydro power
In 2016, Gilkes Hydro won a contract to supply its
Compact Turgo turbine to AngloGold Ashanti
in Mali, where it will generate in the region of
150 kW. At the time, the company said “we are