Mining Mindset Clips: Navigating Energy Transition and Grid Modernization

Ian Pearce:
I strongly believe in the necessity of an energy transition. I use the term “transition” intentionally because we can’t simply shut down current energy sources and immediately switch to new ones. Instead, we need a well-defined program to guide this transition, particularly between now and 2050.

Our current grid system is highly inefficient and outdated, requiring a complete redesign of how we supply electricity—whether it’s to individuals or businesses. This inefficiency is due to the complexity and structure of the traditional grid, which I believe needs to shift towards solutions like microgrids and integrated energy systems.

For instance, in Canada, the largest consumer of peak power is often the general population. When people come home on a hot day and turn on their air conditioners, the grid must respond to meet that demand. This creates a lot of latent capacity in the system, where infrastructure sits idle most of the time, only being activated to handle peak demand.

One example from my experience involves power plants known as “peakers.” These plants remain idle until regulators request additional electricity during high-demand periods. While this system functions, it is inefficient and costly.

In mining, energy challenges are even more pronounced, as sites are often in remote locations. Extending power from existing grid infrastructure across hundreds of kilometers results in significant transmission losses, effectively wasting electricity.

Solutions for these remote areas might include small modular nuclear reactors, wind turbines paired with batteries, or solar energy systems. These innovations could support both industry and small communities, offering more efficient and localized energy generation.