PUSHING TECHNICAL + COMMERCIAL LIMITS FOR ENERGY PROCUREMENT

PUSHING TECHNICAL + COMMERCIAL LIMITS FOR ENERGY PROCUREMENT

Craig Blizard, Chief Technology Officer at Pacific Energy, talks to Energy and Mines about how changing customer expectations and policies are shaping energy development.

ENERGY + MINES: How is the drive to decarbonise mining operations changing the energy procurement process and mix for miners?

CRAIG BLIZARD: The decarbonisation pressure is much more real than it has been in the past. Project technical requirements are becoming increasingly more ambitious in terms of RE generation mix targets and our clients are expecting us to push the limit commercially and technically in terms of our offerings.

Furthermore, the financial backing for these initiatives is much sounder. It is no longer just a goal or value add for the projects, it is at the very core of how these projects are developed.

We are also seeing that everyone involved in the delivery chain – client and supplier sides – are just so much more educated on the nature of technology and economic complexities of projects.

EM: What opportunities do you see for smaller, isolated mining microgrids to connect to larger transmission networks?

CB: For those miners that are nearby (or will eventually be nearby) to larger networks, the readiness for integration to those networks presents huge opportunities but also imposes several risks and technical hurdles.

On the positive side, these isolated networks have had to endure extremely low system strength and inertia and at the same time maintain operational stability without any support from larger more diverse networks. The interconnection of these networks will allow for greater flexibility of generation and load balancing, and in turn support decarbonisation goals for both the miner and the network system operator.

Having solved many of the associated technical issues while being an isolated network will allow for services and more advanced solutions to interact with the wider network and bring value to both sides. An example of this is the provision of grid forming BESS (battery energy storage systems), which are often used in isolated networks. These units will support the interconnection stability in a way that would not typically be realised in a standard network extension to a thermal plant.

Considering the challenges, the network extensions will require careful thought and planning to ensure that power quality and control approaches between the two sides of the connection point achieve true interoperability.

EM: What are the key policy and regulatory changes in Western Australia that are influencing power decisions for mines?

CB: We are seeing a greater level of scrutiny regarding control system and protection system standardisation, as well as tighter performance benchmarks for power system operation. Decarbonisation policies themselves are lifting the time pressures to see real transition and forcing us to work through these technical challenges.

The maturation of grid connection rules, particularly in the more electrically dense regions, is changing the way projects are being executed, with much more oversight and higher expectations around power system modelling and project due diligence processes.

In the not-too-distant future, we will see greater coordination of mine behaviour due to their uniquely flexible load and generation system mixes.

These changes will be driven by, and will at the same time support, the continual advancement of mine electrical infrastructure, given they are the key stakeholders in this transition.

EM: How can miners balance their short-term decarbonisation goals with a longer-term ambition to reach net zero?

CB: Realistically, the approach to these sorts of problems is a series of carefully planned short-term steps.

This means you are aware of the long-term goals, but you do not let the enormity of the problem stop you from doing something now. You need to find the balance of doing longerterm planning without making the plan so big it prevents action or choice paralysis.

Focus on the wins you can have today, with a mindset of a complete roadmap moving along in parallel.

Technology selections must be flexible and adjustable, so do not pursue the cheap and cheerful, focus on the right level of quality. It does not need to be gold plated but it needs to be taking the longer-term view into the mix.

When building the roadmap, you also must understand the value of fully exploiting the assets. Don’t just think about what one asset type can give you now, think about other things it can offer or what it can enable, how can it be adjusted (via control modes or small plant modifications) to suit wider, future goals.

EM: How are smaller miners or mines with short lifetimes managing energy decarbonisation planning?

CB: These sorts of miners are highly active in the pursuit. They are not deterred by the mine life.

Balancing mine life with medium term project payback periods was historically extremely hard. Now we are seeing customers strike the right balance between those elements as well as getting good bang for buck. This means they can achieve noteworthy decarbonisation outcomes, get some wins, and build confidence albeit against the backdrop of a short project duration.

As we know, achieving noteworthy decarbonisation outcomes requires careful and timely decisions. The no decision case is no longer viable.

It’s also being ready to take calculated risks about what those assets can do even if the mine stops operating. Considering questions like: Can we deploy these elsewhere? Can we use this asset for another service into the network after local generation needs change? You need to keep your eye on the market and be ready to pivot.

EM: What do you see as the next key developments for mines as they progress their energy decarbonisation strategies?

CB: If I had to boil it down, I would say it is about network modernisation, interoperability of zones and healthy competition.

Moreover, it is about making decisions now rather than waiting for perfection down the road.

We will see various regional network expansions, we will see greater levels of performance and transparency expectations on isolated and regional networks, and we will see increased technology options coming into the mix.

These local and regional networks will start to become more connected, even enmeshed in some circumstances. Through that, interoperability of the network zones and dealing with different generation and load behaviours will be critical.

In the end, these new or more advanced power systems will lend themselves to creating mutual benefits of the hybrid networks in terms of their load’s behaviour, generation mixes and increasingly aggressive decarbonisation targets.