Mining projects worldwide have embraced renewable energy solutions rapidly. The installed or planned capacity reached 5 GW of renewable energy projects at mine sites globally by late 2019—up from a mere 600 MW in 2015. Energy costs make up 15%-40% of a mining operation's total operating expenses. This creates a compelling business case and a chance to benefit the environment.
Many mining companies still rely on fossil fuels because they don't deal very well with energy integration challenges. Mining operations' energy requirements could surge by 36% by 2035, which makes the shift to renewable energy crucial. The mining sector's environmental impact remains substantial. It uses about 19% of global coal products, 5% of global gas, and 2% of global oil.
This piece gets into how mining companies successfully implement renewable energy solutions in 2025. We'll explore their ground results and key takeaways. Mining operations worldwide have found groundbreaking strategies—from hybrid energy systems to equipment electrification. These approaches deliver both environmental and economic advantages.
The energy problem mining faced before 2025
The mining industry ranks among the world's biggest energy consumers. It used about 38% of global industrial energy, 15% of global electricity, and 11% of total global energy before 2025. This massive energy usage created huge challenges for mining companies and the environment.
Why mining operations relied on fossil fuels
Mining companies didn't choose fossil fuels - they just needed them. Most valuable mineral extraction sites sit in remote areas away from power grids. These isolated spots left companies with no choice but to generate power on-site using diesel, heavy oils, and coal.
Mining operations needed power 24/7 without interruption. Renewable energy couldn't deliver this reliability until recent storage breakthroughs. The heavy equipment used in drilling, excavation, material handling, and processing needed high-energy-density fuels that only fossil sources could provide.
Lower quality ore deposits made things worse. As better-grade deposits ran out, companies processed more material to get the same mineral output, which meant using more energy. To cite an instance, when copper ore grade dropped between 0.2% to 0.4%, operations needed seven times more energy than before.
The cost and environmental impact of traditional energy use
Energy bills have always hit mining companies hard, eating up 15% to 40% of their operating costs. This made them vulnerable to unstable fossil fuel prices.
The environmental toll proved equally heavy. Mining operations pumped out large amounts of greenhouse gas emissions and caused various types of pollution. Water pollution and shortages became critical problems, especially where water was already scarce.
Before 2025, mining activities damaged the environment severely. The list included soil erosion, deforestation, air pollution, and toxic waste. These problems spread way beyond the reach and influence of the mining site and hurt local ecosystems and communities. Contaminated water poisoned fish and crops, while polluted air caused breathing problems and other health issues nearby.
Mining's reliance on fossil fuels created an odd situation: the industry that supplied materials for clean energy technology also contributed heavily to the climate crisis it helped fight.
How renewable energy integration began in mining
Mining operations started their switch from fossil fuels to renewable energy in the early 2000s, with a big push coming after 2015. Renewable energy made up just 0.001% of the sector's energy consumption back in 2014. All the same, groundbreaking companies built the foundations through early test projects.
Early pilot projects and lessons learned
Barrick Gold led the way in 2011 by completing a USD 50 million wind operation at Punta Colorada. The company became Chile's first mining operation to build a wind farm. That same year, Chevron built a 1-megawatt concentrated photovoltaic solar facility at its Questa Mine in New Mexico. This facility generated enough power for about 300 homes.
These original projects taught valuable lessons about mixing renewables with mining operations. Small solar units worked well at California's Leviathan Mine. They powered monitoring equipment and kept bioreactor control rooms warm throughout the year at this remote, high-elevation site with limited grid access. Like in Colorado, the Summitville Mine built a micro-hydroelectric power plant in 2011. The plant provided up to 32 kilowatts to run the site's water treatment system.
The role of government incentives and policy changes
Government policies helped speed up renewable adoption in mining by a lot. The 2022 Inflation Reduction Act extended the Investment Tax Credit (30%) and Production Tax Credit (USD 0.03/kWh) through 2025. These credits offered major financial incentives for renewable energy projects and lowered renewable energy costs for organizations including mining companies.
Resource-rich countries created policies to propel this transformation. Chile changed its laws in 2008. The new rules required electricity traders to source at least 5% of electricity from renewables between 2010-2014, with a target of 70% renewable electricity generation by 2050. Australia created Renewable Energy Targets and the Small-scale Renewable Energy Scheme. South Africa added a carbon tax in 2019.
The U.S. Department of Energy also launched programs to help. The Clean Energy Demonstration Program on Current and Former Mine Land (CEML) showed how clean energy could work on active and old mine sites.
What’s working in 2025: Real strategies and technologies
Mining companies will go beyond testing renewable energy projects to full implementation by 2025. Their steadfast dedication to eco-friendly methods has led to real progress in many areas of technology.
Hybrid systems combining solar, wind, and storage
Mining companies worldwide now use advanced hybrid energy systems that combine multiple renewable sources with storage solutions. These integrated systems help solve the previous problems with inconsistent renewable energy supply. At Rio Tinto's Pilbara operations, a 34MW solar-plus-storage system works alongside 45MW of wind power. This setup has cut diesel use by 60% compared to 2020.
BHP's Chilean copper mines use similar hybrid systems where solar arrays and battery storage provide up to 80% of daytime energy needs. The real breakthrough isn't just putting these technologies together. Smart energy management systems make the best use of resources based on live conditions.
Electrification of mining equipment and transport
Mining fleets have seen a big change in the industry. Electric haul trucks that carry over 290 tons now run in open-pit mines throughout Australia and Canada. These trucks cut out direct emissions and need 40-50% less ventilation in underground operations. This leads to major energy savings.
Forward-thinking operations now regularly use battery-powered drilling equipment, loaders, and utility vehicles. Rio Tinto's Kennecott copper mine uses a fully electric underground fleet. This has cut diesel use by 78% while making the air cleaner and reducing maintenance costs.
Using hydrogen and geothermal for high-heat processes
Mining companies now use hydrogen and geothermal solutions for processes that need very high temperatures. Green hydrogen made through electrolysis powered by renewable energy now fuels smelting at several gold and copper mines globally. These systems provide the steady high-heat needed for ore processing without the emissions you get from coal or natural gas.
Geothermal energy works well in areas with the right geological conditions. The Olkaria Geothermal Project in Kenya shows how location-specific renewable solutions can power mining operations around the clock. It provides constant energy for continuous processing operations.
Beyond the mine: Broader impacts of energy integration
Renewable energy in mining operations reshapes the scene well beyond just improving operations. These changes create ripple effects that benefit surrounding communities and regional economies. Mining companies are accelerating their adoption of renewable energy, and with good reason too.
How local communities benefit from shared energy systems
Mining sites with renewable energy infrastructure share their power generation capabilities with nearby communities through "community benefits frameworks." Local populations get tangible benefits from these frameworks while staying protected from potential burdens. Mines with renewable installations in Latin America have helped communities access electricity, especially in remote regions of Chile and Brazil where energy poverty was a challenge. The RevoluSolar energy initiative stands out as the first photovoltaic community founded in a Brazilian favela that brought renewable energy to 30 families.
The Lyndoch residential community microgrid project in South Africa connected more than 30 homes through a tiered grid system. The community's members received training and certification from industry experts to handle the development, installation, maintenance, and operation of the energy system.
Job creation and workforce transformation
Renewable energy integration accelerates substantial job growth throughout the mining sector. The global renewable energy sector now employs about 13.7 million people directly and indirectly. Solar photovoltaic installations create 4.9 million jobs worldwide. These positions are more accessible to diverse populations than fossil fuel sectors - women hold about 40% of solar PV jobs, almost double their representation in fossil fuel industries.
The industry faces significant workforce development challenges. An IEA survey of more than 160 energy companies showed that installation and repair positions are the hardest to fill because workers lack industry-specific knowledge.
Improved energy security and cost savings
Renewable energy boosts energy security for mining operations in remote areas significantly. Hybrid renewable systems reduce reliance on imported fuels that often face supply chain disruptions and volatile prices. These systems have shown remarkable cost effectiveness - at El Toqui Wind Farm in Chile, wind generation produced electricity at just USD 21.60/MWh compared to USD 254.50/MWh for diesel generation.
Mining companies can create additional revenue streams by selling surplus renewable generation back to regional grids. This approach encourages them to install generation capacity beyond their immediate needs, which helps strengthen regional energy infrastructure.
Conclusion
The mining industry's switch to renewable energy stands as one of our era's biggest industrial changes. Tech breakthroughs and smart investments have helped mining companies break past old barriers to clean energy adoption. This progress stands out because these companies relied heavily on fossil fuels to run their remote sites and power-hungry processes.
The financial and green benefits of this change are remarkable. Mining sites now save substantial costs while cutting carbon emissions - solving a key challenge that used to define the sector. Energy costs that once ate up 40% of operating expenses have dropped sharply. Companies also enjoy better energy security and less exposure to fuel price swings.
These benefits reach well beyond the bottom line. Mining operations now share their renewable power setup with nearby towns that previously lacked reliable electricity. New jobs in setup, upkeep, and system operations have created career paths. Women have especially benefited - they hold 40% of solar PV jobs, twice their share in fossil fuel work.
Mining companies supply the vital minerals needed for clean energy tech and have finally matched their operations with their products' purpose. Their success shows other power-hungry industries the way forward. A mix of solar, wind and advanced storage works with electric equipment and alternative fuels to create complete energy solutions.
Mining's renewable energy story proves that real solutions emerge when tech, policy and business leadership join forces. An industry once known for its environmental damage now shows how industrial sites can succeed while reducing their footprint. Other sectors will likely follow this path as renewable tech gets better and cheaper.
