Why the mining industry needs microgrids, small nuclear reactors, and distributed energy systems to power remote operations - and how the current grid fails mines with transmission losses and peak demand inefficiency.
Video transcription
Energy Transition Is a Process, Not a Switch
I do believe that we need to have an energy transition - and I use the word "transition" because one cannot take the energy sources of today and just switch them off, then flip over and switch on the other energy sources. I think we need to, between now and 2050, actually have a very clear program of how we are going to transition our energy.
The Grid System Is Highly Inefficient
I do believe that our grid system is highly inefficient, and I think we need to redesign how we supply electrons - whether it be to a person in the street or whether it be to a business.
I always look at the cell phone as a disruptor. Think about the telecommunications world where a landline was the only device you could use to communicate on. When you look at the advent of a cell phone, it's now no longer a cell phone - it's a mobile device, because it's become more than just a communication device.
When you look at energy, because we have developed this grid system that's highly inefficient and highly complex, I think that has to be changed. I believe in thinking about microgrids, and I think a combination of energy systems is the way forward.
Peak Power Demand Is a Fundamental Flaw
The biggest consumer - certainly in Canada, in my experience - of peak power is the population. When a person comes home and decides it's a hot day and switches on the air conditioner, the grid has to respond by supplying the electrons so that person can run the air conditioner.
You've got this very complex power supply system that is being pulled upon to supply peak power demand because of the person in the street. I think that's a flaw in our system. We have a lot of latent capacity in our sector which is just there to supply that peak power. It could be running 24/7, but it doesn't - because it's needed for that peak power.
We've even got, at one of the companies I'm with, what they call peakers. They stand idle all the time, and when peak power hits, the regulator calls us and says "switch on" - and we supply the power. We get paid an incredible amount of money so we can keep the thing standing for all year. Those are things that I think, through this energy transition, need to be addressed.
Remote Mine Sites Need Distributed Energy Solutions
The second thing in mining is that many times our sites are remote. When you think about the grid's ability to take power from an existing infrastructure hundreds of kilometers to a mine, it doesn't make sense. When you look at your line losses over that transmission line, it's just wasted electricity - you're losing electricity by moving electrons down a very inefficient system.
I think there are solutions - whether it be small nuclear reactors, whether it be wind turbines and batteries, whether it be solar and batteries. There are solutions to remote locations, whether it be for industry or for society where you've got small towns.