HYBRID POWER AT REMOTE MINING SITES TO REDUCE ELECTRICITY COSTS
Renewable assets have large upfront capital costs but minimal operating expenses over their lifetimes. In some instances, deals can be structured so that direct capital investment is feasible, with paybacks typically within 5-7 years. In others, the burden of renewable CAPEX must be removed in order to create an attractive alternative to fossil-fuel-fired generation. Hatch has designed and oversees the construction of a renewable installation, which is financed, owned and operated by a special-purpose entity. Renewable energy is then delivered to the mining company via a customized power purchase agreement at a price that is lower than the levelized cost of fossil fuels. In this way, the mining company removes the burden of the renewable energy CAPEX from its balance sheet, thus freeing up capital, decreasing risk, and making the predictable, lower cost of renewable power more attractive than the variable cost of fossil fuels.
Power; energy; mining; Cost; Costs; Load; fossil fuels; Turbines;