Renewable energy is not a river of gold; keeping Australia’s mining operations running optimally during the energy transition will require firming by gas, APA group executive energy solutions Darren Rogers said.
Speaking at the Pilbara Summit last week, Rogers said gas is critical in supporting renewables and will play a key role in ensuring stability when renewable generation is low. However, with the intermittency of renewable generation, there is a continuous change in the generation mix between solar, batteries and thermal generation.
“In the Pilbara, the challenge of maintaining reliable energy supply is significantly more complex than in the NEM or WEM, due to the region’s unique climate and industrial demands,” Rogers said.
“Over the past 11 years, the Pilbara has experienced, on average, around 101 renewable ‘droughts’ each year –periods where wind and solar generation drop for more than eight hours at a time.”
Rogers said these droughts highlight the limitations of relying solely on variable renewable energy.
“Mining operations in the region simply can’t afford interruptions. They require firm, continuous power to remain productive and globally competitive. A ‘run-of-resource’ renewable profile just doesn’t meet the reliability and cost expectations of the sector.”
While batteries play a vital role in smoothing short-term fluctuations, Rogers said they are not an economically viable solution for long-duration energy storage (LDES) in this context.
“Conventional LDES technologies are either not commercial or not suited to the Pilbara’s environment and load profiles.
“That’s why thermal power – particularly gas-fired generation – will remain essential for decades to come.”
Rogers said it’s not just about filling the gaps when the sun doesn’t shine, or the wind doesn’t blow.
“It’s about providing the firm, dispatchable, and affordable energy that underpins the mining industry in the Pilbara.
“It’s also important to match the asset class to the need – what is required is fast start, efficient and flexible gas generation, not simply large capital efficient or combined cycle plants that cannot accommodate significant load swings and high ramp rates.”
Rogers said as we integrate more renewables, gas will continue to play a balancing role – ensuring energy security.
“To make this shift possible, we’ll need significant investment in high-voltage transmission infrastructure –moving large volumes of renewable energy across vast distances and into mine sites and industrial operations,” he said.
“That’s why we’re pleased that APA has been awarded preferred proponent status by Energy Policy WA for the Hammersley and Burrup transmission corridors, a key element of the WA Government’s Pilbara Energy Transition plan.
“We continue to progress these projects and we’re excited about the opportunity to partner with the Western Australian Government to deliver them.”
Rogers said APA Group is continuing constructive, ongoing engagement with Traditional Owners to ensure the company delivers outcomes that are respectful and inclusive.
He also spoke to how the government can best support energy transition projects.
“One of the biggest challenges we continue to face is securing tenure and navigating the approvals process,” Rogers said.
“The cost of equipment is skyrocketing, making the economics of many renewable projects increasingly difficult.
“We need to be clear: renewable energy is not a river of gold,” Rogers said. “These projects must stack up commercially.”
Rogers said governments need to play their part in making the investment environment more attractive. He said this means faster approvals, reduced duplication between state and federal processes, and less cost-shifting to developers.
“Finally, while net zero is a long-term aspiration, what’s needed now is clarity around investor targets and practical incentives.
According to Rogers, governments should focus on maintaining net zero targets and supporting renewable energy schemes, meeting quotas, and delivering consistency.
“That’s what gives these projects the certainty they need to proceed.”
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