When the Wind Does Not Blow
The impact of mining’s dependence on variable power
Regardless of the location or operator of a mine, energy and electricity are vital to its smooth and productive operation, and renewable sources in the mining industry are generating a larger share of this than ever before. Chile is well-endowed with the resources vital to the green transition, leading by example, with an acute focus on renewable energies. There exists a symbiosis between the mining of copper and lithium and the usage of renewables, something which energy companies, mining companies, and the Chilean government are all keen to promote. The National Mining Policy 2050 is the government’s first step in providing clear guidelines for electrification and decarbonization of the mining industry, to reduce GHG emissions by 50% by 2030 and ensure carbon neutrality in major mining operations by 2040, a decade earlier than the countrywide goal of decarbonization by 2050.
Due to the increased demand for renewable energy, the market has seen a boom in Chile, with InvestChile reporting that 68% of the nation’s power is generated by renewable methods, and solar generation is now double what it was in 2020. However, the mining industry cannot become over-reliant on certain renewable energy sources, as currently, 35% of Chile’s energy comes from variable methods such as wind and solar energy. These present issues with temperamental weather conditions that are constant in Chile, since the country is particularly prone to global warming and climate change, altering its meteorological makeup.
Possessing a portfolio of 1.8 gigawatts of projects in different stages scattered across Chile, Statkraft is a global leader in energy generation, including a hydroelectric power plant in Rucatayo. The company is currently looking into diversifying its generation, commissioning three new wind farms in Chile. “Renewable energies, as wonderful as they are, because they allow us to address the main environmental challenge that the planet faces today, also have challenges. That challenge has to do with variability. They are energies that are not available 24/7. So, regulations and incentives must be focused on addressing that variability and providing flexibility to the system,” commented María Teresa González Ramírez, country manager of Statkraft Chile.
To help solve this, hybrid approaches to renewable energy are gaining traction in Chile, with the co-location of wind and solar farms being adopted by energy companies up and down the country. Energy company Aggreko focuses on hybrid energy solutions, combining renewables with backup power systems. Carlos Grez, general manager of Chile, Argentina, and Peru, stated: “We are increasingly looking to hybridize the solutions we offer our clients, combining renewable energy types to lower the overall operating costs. We are also looking into hydrogen solutions to reduce emissions and installing a portable electrolyzer to upgrade one of our operations in the mining sector in Argentina.”
“If a mining company has a well-developed energy and production strategy, you typically will see decarbonization as a major aspect of their goals. This means moving from diesel to gas generation and introducing more efficient equipment.”
Carlos Grez, General Manager Chile, Argentina, Peru, Aggreko
These provide a more diverse offering of energies, and with heavy investment in energy infrastructure and storage over the last couple of years, the issue of variability may soon be a thing of the past. “Batteries have dropped significantly in price, and today, they are competitive and provide a response that helps mitigate this risk of variability because they allow energy to be stored for when it is not being produced,” expanded González Ramírez.
Energy companies are also looking to innovate as well as diversify to overcome the issue of variability. As one of Chile’s oldest companies, with 168 years of history, Gasco has been supporting Chile’s mining industry with energy development for decades, including recently at Escondida, where the company is aiming to eliminate 100% of the emissions from the facilities at the mine using solar thermal energy to heat electrowinning pools.
Gasco is having to devise innovative solutions to cater to the demand for renewable energy in Chile’s mines, particularly in the lithium industry, which is intensive both in terms of electrical and thermal energy. “We are implementing projects through our subsidiaries that combine photovoltaic systems with batteries. We traditionally have generators based on liquefied gas (LPG) to deliver a supply with renewable energy while providing continuity through motor generators,” revealed Juan Andrés Méndez Quezada, energy solutions manager for Gasco.
On February 25, 2025, Chile’s vulnerability to energy issues was exposed on a global scale, whereby a nationwide blackout affected 90% of the population. This was caused by a malfunction in electronic software systems that triggered a disturbance in national power systems, causing President Boric to declare a state of emergency. The blackouts impacted many industries in Chile, and mining was no exception. Codelco reported impacts on all their operations, with emergency protocols implemented to ensure the safety of workers and operations.
“Innovations such as efficient transformers, encapsulated substations, and autonomous technologies like driverless trucks have propelled Chile to the forefront of global mining advancements.”
Mauricio Mazuela, General Manager, Hitachi Energy Chile
Carlos Grez of Aggreko believes more investment is needed in backup systems in mining when failures in national systems like this arise. The key to avoiding such problems is early planning, as energy companies can gain an understanding of the unique needs of each operation should grid access become unavailable. “There is a balance to be struck between continuity of operation and decarbonization, with continuity being more important in the early stage of a project. Before companies can think about decarbonization, they need to prove that their resource is worth developing and will bring profit to all stakeholders. When a company’s position becomes more solid and moves into operation, often only then can companies truly devote themselves to decarbonization,” Grez continued.
Hitachi Energy provides digital solutions to the energy needs of many industries, including mining. 2024 was a challenging year for the company, with market conditions slowing due to environmental approval issues, leading to many projects not materializing. Despite these setbacks, Hitachi Energy was able to roll out several new technologies to aid in the remote monitoring of power and energy, including the Vegeta Manager platform, which observes issues with power lines, and Grid Span, a modular solution designed for the mining to provide pre-engineered power supply to operations in remote locations. “Our challenge is to provide robust and reliable interconnection solutions for mining and other high-consumption areas. We also aim to increase the adoption of our digital technologies and service contracts with remote monitoring,” explained Mauricio Mazuela, general manager of Hitachi Energy.
With their remote observation technology located in their offices in Santiago, the company makes energy in Chilean mining safer and more sustainable, whilst reducing costs for mining companies. The instability of renewable energy sources in their current form presents a great opportunity for the company, remarked Mazuela. He elaborated: “We have invested in expertise to support this, bringing worldwide specialists to address Chilean power electronics demands. Hitachi Energy is actively engaged with system operators, discussing and modeling different technologies to inform their technology promotion decisions.”
Chile’s mining sector is rapidly adopting renewable energy solutions to meet its ambitious goals for net zero and carbon reduction. Grid stability is, however, causing problems, and experts predict this to only increase as the effects of climate change tighten their grip on a country already struggling. With the advent of smart grids and AI-driven demand response gaining popularity and becoming ever more efficient, investment in energy transmission infrastructure and digital optimization will become key in ensuring the sustainable future of energy usage in mining.
“Chile has been advancing in its energy transition in a remarkable way, with an unprecedented voluntary agreement between the public and private sectors to decarbonize.”
María Teresa González Ramirez, Country Manager, Statkraft Chile
Article header image by Kseniya Ragozina at Adobe Stock