Roadblocks to Renewable Energy Integration for Mines

December 2018

Background

S Power arrangements

S Roadblocks

S Trends/Drivers

S MethodologyS Literature review

S 38 Case studies

S 53 Interviews

S Target audienceS Host Governments

S Mining companies

S Independent Power Producers

S Donors

S Technical

S Expertise

S Financing

S Regulatory

S Interests/incentives

Roadblock 1: Technical

S Intermittency & variability

S Daily

S Yearly

S Multi-year cycles

S Location & installationS Region

S Site specific

S Land-use intensity

Load and production profile of wind & solar

Roadblock 2: Expertise

S Energy system

S Procurement

S Logistics

S Accountability

S Electrifying surrounding communities

Fuel trucks at Diavik mine in perspective (2014)

Roadblock 3: Financing

S Up-front capital cost

S Financing costs

S PPA commitmentS Reserves

S Lack of flexibility

S Bankruptcies

S DFIs focus on utility-scale renewable projects

Power price simulations based on project life

Roadblock 4: Regulatory

Global level of subsidies

S Fossil fuel subsidies

S Fuel tax exemptions/credits

S Lack of renewable specific regulations

S Lack of incentives for first movers or for electrifying surrounding communities

Roadblock 5: Interests/incentives

S Government

S Appealing to voters

S Public utility

S Beneficiaries from incumbent system

S Private sectorS First mover problem

S Corporate vs. operational incentives

S Contractors

TRUMP DIGS COAL

PAPPI

nmaenn@law.columbia.edu

@nmaennling

Thank you!