Towards low-carbon economy: A business model on the integration of renewable energy into the mining industry

Abstract

Availability of technological solutions together with priorities decarbonizing the mining sector lead renewable energy (RE) to become an attractive energy source for the mining industry. Pilot projects were commissioned in several countries. However, there is a lack of knowledge on business models towards RE integration into the mining sector. The target of this paper is to present the results of a business model as a decision-making tool on comparison of different energy systems. Four scenarios are performed. These scenarios intend to compare fossil fuel systems and hybrid systems in the sense of no return. Part of that, a comparison of costs of ownership of each scenario has been performed as a basis for decision-making. Furthermore, the scenarios take into account a PV yield for different locations, degradation rate of PV modules, and carbon dioxide (CO2) emissions impact. The key results of this business model give recommendations on the energy systems being integrated in mining operations. Additionally, the annual average savings of the cost of ownership of hybrid energy system and the CO2 emissions impact including a CO2 emission price fluctuation have been analyzed. This business model can be generalized to all mining settings, with specific practical implications for off-grid mines. This study aims to attract attention of policy makers, decision makers, and experts on fossil fuel and RE technologies in order to give alternatives in powering the mining industry and can be applied worldwide.