Decentralised Renewable Energy Solutions for Inclusive and Sustainable Mining

This report by the Alliance for Renewable Electrification (ARE) and UNIDO ITPO Germany explores the integration of decentralised renewable energy (DRE) in the mining sector to decarbonise operations and provide electricity to underserved surrounding communities. It advocates for a 'shared use' approach to infrastructure to address energy poverty and environmental impacts while enhancing the sustainability of mineral supply chains.

• The mining sector is a major contributor to global greenhouse gas emissions due to its heavy reliance on fossil fuels for extraction, transportation, and processing, particularly at remote sites with limited grid access. Mining accounts for 4-7% of global GHG emissions, and approximately 62% of the energy used in the sector is fossil fuel based.
• The demand for key minerals required for the energy transition—including lithium, cobalt, nickel, copper, and rare earth metals—is projected to drive a 36% increase in the mining sector's energy consumption by 2035.
• Implementing 'shared use' DRE infrastructure, where power is provided to both mines and nearby communities, can address multiple Sustainable Development Goals (SDG-7 and SDG-9) and catalyze local socio-economic development. The report identifies four primary approaches: powering both via the same source, using separate grids, feeding the local grid to improve reliability, or repurposing end-of-life mines into power plants.
• Several systemic challenges hinder the adoption of inclusive DRE in mining, including complex energy regulations, a lack of technical skills in remote communities, and a mismatch between mining investment structures and renewable energy business models. For instance, standard 20-year Power Purchase Agreements (PPAs) often do not align with the specific energy demands or the operational lifetime of a mine.
• Gender inequality remains a significant barrier in mining regions, where women are underrepresented in decision-making and face unequal land rights. The report recommends embedding a 'gender-lens' in projects to ensure benefits are shared equally and to empower women to start small businesses, which creates positive socio-economic multiplier effects.
• Case studies demonstrate the viability of various DRE models: a hybrid microgrid in Queensland, Australia, aims to power 100% of a mine and 50% of a local community; a project in Madagascar reduces regional grid carbon intensity by 60% by exporting excess mine power to the local grid; and a project in Mali uses a 36 MWp solar PV plant to meet 75% of a mine's peak energy demand.

APA

Alliance for Renewable Electrification (n.d.). Decentralised Renewable Energy Solutions for Inclusive and Sustainable Mining. https://www.renewelec.org/wp-content/uploads/2023/11/DRE-for-Inclusive-Sustainable-Mining_Web-Publication.pdf

Chicago

Alliance for Renewable Electrification. Decentralised Renewable Energy Solutions for Inclusive and Sustainable Mining. n.d. https://www.renewelec.org/wp-content/uploads/2023/11/DRE-for-Inclusive-Sustainable-Mining_Web-Publication.pdf.

Wikipedia

{{cite report |author=Alliance for Renewable Electrification |title=Decentralised Renewable Energy Solutions for Inclusive and Sustainable Mining |url=https://www.renewelec.org/wp-content/uploads/2023/11/DRE-for-Inclusive-Sustainable-Mining_Web-Publication.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{allianceforrenewableelectrificationnddecentralised, author = {{Alliance for Renewable Electrification}}, title = {{Decentralised Renewable Energy Solutions for Inclusive and Sustainable Mining}}, institution = {Alliance for Renewable Electrification}, url = {https://www.renewelec.org/wp-content/uploads/2023/11/DRE-for-Inclusive-Sustainable-Mining_Web-Publication.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }