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Reliable and secure energy supply is critical to mining operations. The NSW minerals industry accounts for about 2.5% of the total net energy consumption in NSW. Energy is a substantial cost and can also pose a business risk. The mining industry is constantly reviewing ways to increase the efficiency of their operations and be more competitive, this includes actively pursuing energy efficiency. With the price of energy increasing substantially across gas, oil and electricity and with this trend likely to continue, it makes good business sense to support energy efficiency measures. As energy consumed by the minerals industry is mostly fossil-fuel based, any reduction in energy consumption also means a reduction in greenhouse gas (GHG) emissions. The industry’s active participation in implementing energy efficiency demonstrates that the NSW minerals industry is proactively engaged in driving solutions to climate change.
The NSW minerals industry supports voluntary energy efficiency measures and also makes a significant contribution to energy saving efforts identified under existing State and Federal Government initiatives. Energy efficiency projects have the potential to generate significant savings for sites, to the extent that energy efficiency programs can typically begin to pay for themselves in the first two years of implementation.
As our understanding of energy efficiency has improved so has the mining industry’s approach to energy efficiency, with many operations designing energy efficient processes at the design phase of new projects or modifications. For example, the design of a new mine can optimise the layout of processing areas and haul roads to minimise handling from active mining areas, thereby reducing energy needed for operations.
There is also a focus on energy efficiency in the project approval process with proponents needing to assess and demonstrate how energy efficiency is being integrated into projects. There is also increased monitoring of energy efficiency initiatives through project approvals reporting requirements.
The minerals industry participates in a number of government initiatives that are aimed at reducing energy consumption and ultimately greenhouse gases. Many in the NSW minerals industry were early participants in the voluntary Australian Government’s Greenhouse Challenge program which supported improved management and mitigation of greenhouse gas emissions at a time where no statutory programs existed.
There has been significant policy development in the energy efficiency area over the last five years with a number of schemes now in place which specifically promote energy efficiency in businesses. Two programs are the NSW’s Energy Savings Action Plans (ESAPs) for large energy users which focuses on stationary energy use. The Federal Government’s has a similar program, Energy Efficiency Opportunities program which addresses all energy used. To meet requirements of the programs the NSW minerals industry undertake audits of energy across their activities to improve the understanding of energy use. Companies then identify energy savings opportunities that could be implemented and develop business cases to support them. The Energy Efficiency Opportunities program also requires management processes to be reviewed to ensure energy efficiency is integrated across an organisation. Each program has different reporting requirements. In both programs the Government monitors progress. The Energy Efficiency Opportunities program also includes public reporting requirements.
In July 2009 the NSW Government introduced an Energy Efficiency Scheme which sets a target for energy savings in NSW. The requirement is effectively an energy efficiency trading scheme to promote energy efficiency initiatives throughout the NSW economy. The NSW minerals industry will be able to actively participate in generating energy savings under this scheme to enable NSW to meet its energy saving target.
Relevant Document
Fact Sheet – Energy and Greenhouse in the NSW Minerals Industry
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