Solar's significant potential

Global energy markets are changing, and no industry or sector has been left untouched by the call to action to tackle climate change. At this year’s COP26 Summit, the Global Energy Alliance for People and Planet (GAEPP) was launched to accelerate investment in green energy transitions and renewable power, demonstrating the crucial role renewable energies, such as solar, have in reducing emissions. However, switching fossil fuels off to turn cleaner energy on presents challenges that are being felt acutely by industries around the world, especially those operating off grid.

In the absence of a grid connection, which is often the case for sectors such as mining and oil and gas, power generation is a fundamental decision for operators. Moving away from diesel generation to gas is an initial step, but the imperative to integrate renewable energy systems in response to a global call for action on climate change has become a priority, especially for those operating in energy intensive industries.

Given that solar power by its very nature produces energy on a highly variable basis, it has not previously been a viable solution for many of these hard-to-abate sectors. This combined with the short-to-medium-term nature of these projects has minimised its adoption in the industry, where solar simply has not been considered.

Recent cost reductions in solar photovoltaic (PV) equipment driven by global competition and economies of scale, along with a robust global appetite for investment in renewable energy projects, have inspired break-through innovations in solar power, batteries, and hybrid system controls technology. This has opened up the possibility for traditionally carbon intensive industries to incorporate renewables into their energy mix.

Looking at the mining industry as an example. It is estimated that the industry uses 6.2% of total global energy consumption. Integrating solar power into the energy mix throughout the lifecycle of the mining project from the construction phase all the way through to day-to-day

Figure 1. Optimised photovoltaic (PV) system design is key to maximising production and cost savings.

Rodrigo Salim, Head of Renewables & Storage Product Line (France), and Cathy Redson, Global Product Manager for Solar PV Systems (USA), Aggreko,

discuss the potential of solar to support off grid decarbonisation.

mining operation, can have a significant impact. However, this requires a partner with experience, especially when considering the reliability, cost, and flexible nature of these complex solutions.

Power without compromise

One of the key challenges with using renewables is the intermittency of solar PV and wind systems which rely on certain environmental conditions. There are technologies available, however, that when combined with proper design, installation, operations, and maintenance can eliminate the impact of variable generation and actually improve reliability. At Aggreko, the company’s modelling tools help to properly size and design a bespoke hybrid system, considering both technical and economic project goals.

Battery storage has become a lynch pin to the energy transition and is a driver of greater adoption of renewable hybrid power systems. Hybrids enable the integration of renewables without compromising on reliability, making the solution particularly beneficial for areas with limited or no access to permanent power. The instantaneous response of battery energy storage systems can smooth the intermittency of solar PV power or sudden start or stop of large loads such as motors and heat. In addition, excess renewable generation can be stored and shifted for use at night to increase overall renewable energy penetration.

Putting innovation into action, Aggreko is currently deploying a hybrid power solution for the Salares Norte mine, based in the Chilean Andes. This remote site faces additional challenges in ensuring reliable energy as it sits at an altitude of 4500 m in the mountain range, 190 km from the nearest town. Aggreko’s solution pairs a high-altitude performance diesel genset with a solar PV system designed and built to meet the air density and extreme weather conditions experienced at the site. Cloud cameras capture images in 30 sec. intervals to help predict and react to cloud events, increasing reliability and maximising fuel savings. In addition, the gensets incorporate spinning reserve and cold reserve units to efficiently manage peaks in demand and deliver a reliable power supply across all five of the mine’s distribution points.

Greater affordability

Power generation represents a significant proportion of off grid operating costs. With this in mind, it is easy to understand why getting the right fuel type or fuel mix to optimise fuel costs and maintain competitiveness is top of a decision maker’s priority list.

The rise of green financing in the form of assets, bonds, and funds demonstrates how investors are putting monetary importance on the energy transition. In 2012, the sustainable debt market was worth approximately US$10 billion, but has since risen to nearly US$750 billion.1

Renewable energy has emerged as one of the major recipients of green bonds that form a key link between capital providers and renewable energy projects. This is significant as it signals a major transformation in the renewable energy market and provides an alternative pathway for large industrial

Figure 2. Single-axis trackers increase energy yield by following the sun from East to West.

energy consumers to meet their environmental, social, and governance (ESG) goals. These types of options, plus new platforms for peer-to-peer energy trading and energy co-operatives, are shaping a new project financing landscape as an impetus for industries around the world to more easily pursue renewable solutions.

For the Granny Smith mine in Western Australia, Aggreko was asked to replace the diesel generators with gas units to take advantage of the recent gas line extensions to the otherwise hard to reach area. Following discussions about how and if renewables could be incorporated into their power package, Aggreko integrated over 20 000 solar panels, equating to almost 8 MW of solar power generation and 2 MW/1 MWh battery storage with the existing thermal gas supply as a hybrid power station – under one contract and with no capital outlay. In total, the solar, thermal, and battery storage assets will produce approximately 18 GWh/y of energy, with carbon emissions at the mine expected to be reduced by approximately 9500 t CO2e – the equivalent of taking 2000 cars from the road.

Figure 3. Aggreko’s hybrid solar-gas solution at the Granny Smith gold mine in Western Australia.

Figure 4. Over 2000 solar panels were integrated with the existing gas power station to produce approximately 18 GWh/y.

Solutions with flex

The initial investment combined with questions around reliability and inaccessibility challenges for remote projects has to date limited the uptake of solar solutions for off grid application. Aggreko has also seen some reticence to making large scale investments into a particular energy source, given how quickly the energy sector is moving and the likelihood that today’s technology will very quickly be outdated. This has led to concerns around stranded assets and tied up capital which is ultimately slowing the pace of incorporating renewable energies into the sector.

Industries without grid access and the need for power only for the duration of a particular project, such as a mine or oilfield, are also reluctant to install permanent solutions such as a solar field. More flexible solutions are needed to enable an effective solution to these legitimate concerns. Aggreko’s turnkey, energy-as-a-service (EaaS) business model eliminates these risks, keeping energy costs as an operating expense through either short-term rental options or medium- and long-term contracts. By increasing the flexibility of the solution, Aggreko is expanding the potential for more renewable power for large industrial sites, in locations that previously seemed out of scope.

Embracing the sun

With COP26 putting a much-needed global spotlight on the need for better solutions to the climate catastrophe, there is a huge opportunity for energy intensive industries, including mining, to review their energy mix.

With innovations in both the technology and financing required for solar projects, industries without grid access are better able to add alternative energies into their operations. Aggreko’s turnkey, EeaS business keeps power cost as an operational expense, eliminating the requirement for large initial investments. By making solutions more flexible, previously out of scope locations are now able to embrace solar and other renewable power, encouraged by greater efficiency and improved access to technology. A proven track record of off grid hybrid systems are easing previous concerns around the use of renewable energies in islanded grids, and by the use of battery energy storage systems, such as the one deployed at the Granny Smith mine, it is possible to obtain even greater reliability, by smoothing the intermittency of solar PV power and managing its peaks in demand. Innovations in the financing of renewable projects have also opened up alternative energies for large industrial energy consumers. As one of the biggest recipients of green bonds, a key link has developed between capital providers and renewable energy projects, helping industries, including mining, meet their ESG goals.

Aggreko sees it as its job to open doors for those hard-toabate sectors that face even greater challenges when it comes to responding to the energy transition. It is Aggreko’s intention that, with continued innovation and collaboration with its customers and suppliers, the company will see further uptake of solar solutions in these industries to help realise a lower carbon future.

Refererences

1. https://www.bloomberg.com/news/articles/2021-01-14/the-sustainable-debt-market-is-all-grown-up