Mining activities are energy-intensive and rely largely on fossil fuels to meet their energy demands. This exposes the mining sector to potential policy and regulatory risks, stemming from government efforts to shift the global economy to a low-emission development pathway, as envisaged by the Paris Agreement. At the same time, renewables have become an increasingly cost-competitive source of power generation. This has resulted in a business case for the adoption of solar and wind energy solutions in the mining sector, to reduce costs as well as carbon footprint of operations. The sector’s energy transition also presents an opportunity for resource-rich countries, including developing economies, to foster the synergistic development of higher value added domestic activities in the renewable energy sector. The shift of the mining industry to low-carbon energy has the potential to contribute to advancing the climate and sustainable development agenda, while also pursuing economic diversification objectives. However, the integration of new technologies into conventional power systems comes with risks and challenges. This paper aims to enhance the understanding of the key drivers for, and obstacles to, renewable energy integration in mining operations, based on a review of over 30 existing projects worldwide. The analysis identifies a need for an enabling policy environment, encompassing among others a competitive energy market structure and adequate energy infrastructure, to overcome current challenges and support the synergies between the development of the mining and renewable energy sectors.
Integrating renewables in mining
Review of business models and policy implications
Policy paper
OECD Development Policy Papers
Share
Facebook
Twitter
LinkedIn
Abstract
In the same series
-
Policy paper19 November 2024
-
2 August 2024
-
26 June 2024
-
Policy paper23 March 2024
-
31 October 2023
-
Policy paper30 October 2023
Related publications
-
Policy paper19 November 2024