In
what is hoped to be a crucial
demonstration process for the mining industry, a ground mounted solar array has
begun feeding electricity into a mini-grid at a remote mine site. The 1.7 MW
Weipa array will supply a bauxite mine operated by global mining giant Rio
Tinto, displacing around 600,000 liters of diesel fuel annually.
The
solar array was
developed by First Solar and employs 18,000 modules in combination with First
Solar’s FuelSmart micro-grid integration technology. The PV system is expected to
generate 2800 MWh of electricity annually, which is up to 20% of the remote
townships electricity needs. Weipa is located on the Western Cape York
Peninsula, in the far northeast of Australia.
The
electricity generated by the Weipa offgrid solar array will be purchased by Rio
Tinto under a 20 year PPA.
“This
power purchase arrangement is an opportunity to trial the introduction of an
alternative power source such as a solar plant into a remote electrical network
like the one here in Weipa,” said Rio Tinto Weipa Operations general manager
Gareth Manderson.
“It
is already widely acknowledged that solar electricity is typically cheaper than
diesel-powered electricity, particularly in remote locations,” added Jack
Curtis, First Solar’s Regional Manager for Asia Pacific. “The significance of
the Weipa Solar Plant is that it
provides the opportunity to demonstrate that PV-diesel hybrid projects can also
be as reliable as stand-alone diesel-powered generation.”
While
the economics of a solar array stack up very favorably when compared to trucked
diesel at remote locations such as Weipa, there are a number of challenges in
realizing such projects including the short lifetime, at least on paper, of many
mining operations. The PPA under which Weipa has been developed is a potential
solution to this problem. Mining
operators also tend to be relatively risk averse, pointing to the importance of
the Weipa project as a proof-of-concept.
“At
the Weipa Solar Plant, First Solar is seeking to deliver a reliable electricity
supply without diverting capital costs away from Rio Tinto’s critical mine
operations. Proving this commercial model has the potential to be a watershed
moment for the diesel hybrid application globally,” said Mr Curtis.
First
Solar’s Curtis indicated also that reliable electricity supply through the
solar-diesel hybrid is another challenge to offgrid solar mining projects.
The
Weipa project has been supported by an AU$3.5 million grant made available by
the Australian Renewable Energy Agency (ARENA). ARENA has indicated that it is
willing provide up to AU$7.8 million for the second phase of the Weipa project
that could include extending the solar array to 6.7 MW, and integrating
electricity storage. The expanded project could save some 2.3 million liters of
diesel annually.
“This
is the first time a remote Australian mining operation has been supplied with
power from solar PV on such a scale. The
success of phase one is set to create a precedent for industry by demonstrating
that solar PV is a viable option for powering off-grid locations, like mine
sites, in Australia,” said ARENA CEO Ivor Frischknecht.
The All Energy Australia trade show kicks off next week in Melbourne,
bringing together solar professionals from around the country and
region.
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