Mining Thought Leadership Presentation

What you need to know to

decide on implementing
a Solar System on

your mine

AGEND
A
1) Why Solar Energy Norman Jackson
2) Types of Solar Energy Tuesday 9 February,
CEO - 14:00 14:15
AGE Technologies www.age.co.za
3) How to make Solar Energy work for you on a mine Director GO Solar (Mauritius)
Location Roof
4) What is the Capital and Operational cost of a Solar Terrace Room
www.gosolar.mu
plant Chairman - South African PhotoVoltaic
5) Typical ROI calculations for a Solar Plant Industry Association (SAPVIA)
6) Summary Manufacturing
 Yearly Solar
Energy Potential

Total
Finite
Reserves
1,655
TWy
ypes of Solar Energy
Solar Energy

Solar Water Concentrated Solar Photo Voltaic (PV)

Heating Power GHI Global Horizontal
DNI - Direct Normal DNI - Direct Normal Irradiance
Irradiance Irradiance = DNI plus
DHI - Diffuse Horizontal
Irradiance
)What is Solar Energy Solar Water
Heating
w to make Solar Water Heating work for you on a mine Solar Water
Heating

Controller: Controls the pump to circulate the water between the Geyser and the collector.
Ensures the water temperature is above the threshold value, by switching on
the Electric element if and when required
w to make Solar Water Heating work for you on a mine Solar Water
Heating

Assumptions:
1) 80 litres of water per person per day
2) Water Feed Temperature of 18 Degrees
Celsius
3) Required Minimum Temp. is 40 Degrees
Celsius
4) Staff of 100 Employees
5) Usage 50% in Morning, 50% in Evening
Calculation:
1) Size of Geyser is daily Requirement + 50%. (80x100x150% = 12,000 liters)
2) If the Water needs to be 40 0C after the morning peak, then 400C = 33% Incoming of 18 0C
and 67% of Morning Start Temp.
3) Morning Start Temp = {40 0C (33% of 18 0C)} / 67% = 580C
4) If we assume we loose 5 0C overnight, then the Temp of the geyser must be 63 0C after the
evening peak usage.
5) If the water has to be 63 0C after evening peak, then 630C = 33% Incoming of 18 0C and
67% of Evening Start Temp.
6) Evening Start Temp = {63 0C (33% of 18 0C)} / 67% = 850C
7) Energy To heat from 40 0C to 850C means we have 12,000 l * 4.2 kilo Joules/l 0C * 45 0C = 2
268 000 kJoules
8) A Joules is the amount of energy (Watts) running for 1 second.
9) kWh = kJ / 3600 Sec = 630 kW hours
 Solar Water
hat is the Capital and Operational cost of a Solar plant. Heating

CAPEX Cost
1) Energy Required for 100 Employees - 630kWh
2) DNI (JHB) = 3.97kWh/m2
3) Efficiency of Collectors = 57% (Typical)
4) Number of hours available to heat = 7 hours
5) M2 of Collectors required =
Energy Required / Solar Energy per hr / Efficiency /
Operating hours
630kWh/3.97kWh/m2 / 57% /7 = 40 m2

Ite
m Description Qty Price Total
$ $ 7
1 Collector (m2) 40
193.00 720.00
$ $ 27
2 Geysers (litres) 12000
2.26 120.00
$ $ 1
3 Insulated Piping 600
2.54 524.00 OPEX Cost
Accessories
4 (Controller, PV Panel, 1
$ 1 $ 1 1) Controller and Pump can need
060.00 060.00
Pump, Wiring etc) Maintenance
5 Labour to Install 20%
$ 37 $ 7 2) Estimate of 1% of CAPEX per
424.00 485.00
Annum.
Typical ROI calculations for a Solar Plant
Solar Geysers Unit Day Year
ROI - Solar Water kWh Requirement kWh 630.00 229 950
Heating Cloudy / Rainy Days
(JHB)
% 14.20% 14.20%
Utility power at Solar Production -
kWh 540.54
197
Average 297.1
YearUS$0.0561 2 3 4 5 10 20
Energy
229 229 229 229 229 229
consumption 229 950
950 950 950 950 950 950
[kWh]
Solar Energy
197297.1 197297.1 197297.1 197297.1 197297.1 197297.1 197297.1
production [kWh]
Energy taken
32 32 32 32 32 32
from the grid 32 653
653 653 653 653 653 653
[kWh]
RSA Price per $ $ $ $ $ $ $
kWh [USD] 0.056 0.061 0.065 0.072 0.079 0.127 0.330
Saving on energy $ 11 $ 11 $ 12 $ 14 $ 15 $ 25 $ 65
bill [USD] 053.15 937.40 892.39 181.63 599.80 123.63 164.23
Maintenance $ $ $ $ $ $ $ 1
costs [USD] 449.04 475.98 504.54 534.81 566.90 758.64 358.62
$ 10 $ 11 $ 12 $ 13 $ 15 $ 24 $ 63
Net profit [USD]
604.11 461.42 387.85 646.82 032.89 364.99 805.61
$ 44
Initial Cost
909.00
$ -34 $ 11 $ 12 $ 13 $ 15 $ 24 $ 63
ypical ROI calculations for a Solar Plant.
Solar Geysers Unit Day Year
ROI - Solar Water kWh Requirement kWh 630.00 229 950
Heating Cloudy / Rainy Days
(JHB)
% 14.20% 14.20%
Generator Power at Solar Production -
kWh 540.54
197
Average 297.1
Year US$0.331 2 3 4 5 10 20
Energy
consumption 229 950 229 950 229 950 229 950 229 950 229 950 229 950
[kWh]
Solar Energy
197 297.1 197 297.1 197 297.1 197 297.1 197 297.1 197 297.1 197 297.1
production [kWh]
Energy taken
from the grid 32 653 32 653 32 653 32 653 32 653 32 653 32 653
[kWh]
Diesel Gen. Price $ $ $ $ $ $ $
per kWh [USD] 0.330 0.356 0.385 0.423 0.466 0.750 1.946
Saving on energy $ 65 $ 70 $ 75 $ 83 $ 91 $ 147 $ 383
bill [USD] 108.04 316.69 942.02 536.22 889.85 989.52 846.69
Maintenance $ $ $ $ $ $ $ 1
costs [USD] 449.04 475.98 504.54 534.81 566.90 758.64 358.62
$ 64 $ 69 $ 75 $ 83 $ 91 $ 147 $ 382
Net profit [USD]
659.00 840.70 437.48 001.41 322.94 230.87 488.08
$ 44
Initial Cost
909.00
Typical ROI calculations for a Solar Plant

ROI - Solar Water 86% Saving on Water

Heating Heating
Sustainability
Year 1 2 3 4 5 10 20
Solar Energy
production 197 297 197 297 197 297 197 297 197 297 197 297 197 297
[kWh]
Saving on
CO2
200.26 200.26 200.26 200.26 200.26 200.26 200.26
Emission
(MT)
Carbon Tax
$ 7.27 $ 7.85 $ 8.48 $ 9.33 $ 10.26 $ 16.53 $ 42.88
Rate
Saving on
$ 1 $1 $ 1 $ 1 $3 $ 8
Carbon Tax $ 2 055.50
456.41 572.92 698.76 868.63 310.40 586.32
[USD]
Cumulative
$ 1 $ 3 $ 4 $ 6 $ 22 $ 80
cash flow $ 8 652.23
456.41 029.34 728.09 596.73 456.14 491.30
1)What is Solar Energy
Concentrated Solar
Power

Parabolic Fresnal Solar Parabolic

Trough Trough Tower Dish
1)What is CSP Energy

Parabolic Trough System

With Storage
1)What is CSP Energy
CSP Storage
The best CSP Plants in the world only can produce for 17 to 18
hours a day, this is done by storing the excess energy during the
day and using it either in the evening peak or morning peak.
ow to make CSP work for you on a mine Concentrated Solar Plant With
Storage
2) How to make Solar Concentrated Solar
Energy Power

work for you on a

mine.
w to make Solar Energy work for you on a mine. Concentrated Solar
Power
Economic value Proposition
Threshold values of annual DNI suggested by some researchers.
Threshold value of annual DNI (kWh/m2/year) Dawson and
Schlyter,2012 1800
hat is the Capital and Operational cost of a Solar plant. Concentrated Solar
Power

CAPEX
Cost Annual Output based upon a SM of 2.7
Hours a
DNI kW kWh
year
2 100 450 000
4 500
000 000 000
2 100 480 000
4 800
200 000 000
2 100 510 000
5 100
400 000 000
2 100 540 000
5 400
600 000 000
2 100 570 000
5 700
800 000 000
The CAPEX for 100MW Solar
Tower with 12 hours storage is
about US$ 855 Million

The OPEX for a 100MW CSP plant

with Storage would be about
pical ROI calculations for a 100MW CSP Solar Plant.

Year 1 2 3 4 5 6 7 13 20
Energy
consumption
[GWh] 876 876 876 876 876 876 876 876 876
Solar Energy
production 510
[GWh] 510 510 510 510 510 510 510 510
Energy taken from
the grid [GWh] 366 366 366 366 366 366 366 366 366
Diesel Gen. Price $
per kWh [USD] $ 0.330 $ 0.385 $ 0.423 $ 0.466 $ 0.512 $ 0.564 $ 0.998 $ 1.946
0.356
Saving on energy $ $ $ $ $ $ $ $ $ 992.21
bill [USD Million]
168.30 181.75 196.31 215.94 237.53 261.28 287.41 509.16
Maintenance $ 16.00 $ $ 17. $ 19.06 $ 20.20 $ 21.41 $ 22.70 $ 32.19 $ 48.41
costs [USD
Million] 16.96 98
Net profit [USD $ $ $ $ $ $ $ 943.80
Million]
152.30 164.79 $178.33 $196.88 217.33 239.87 264.71 476.97
Initial Cost [USD $
Million]
-885.00
Interest on $ $ -64. $ $ $ $ $ -2.20 $ $ 783.03
Money 8%
-70.80 30 -56.20 -46.47 -34.449 -19.81 193.55
Cash flow [USD
cal Sustainability calculations for a 100MW CSP Solar Plant.

Year 1 2 5 13 20
Solar Energy
production [GWh]
510 510 510 510 510

Saving on CO2
517
Emission (Metric 517 650 517 650 517 650 517 650
Ton) 650
Carbon Tax USD/MT $ 7.27 $ 7.85 $ 10.26 $ 22.00 $ 42.88
Saving on Carbon
Tax [USD Million]
$ 3.764 $ 4.066 $ 5.313 $11.389 $ 22.195

Cumulative cash
flow [USD Million]
$ 3.764 $ 7.831 $ 22.365 $ 89.204 $ 208.065

Price Increase 8% 8% 10% 10% 10%

1)What is PV Solar Energy
Photo Voltaic (PV)
1)What is PV Solar Energy Photo Voltaic (PV)

Photovoltaic (PV) effect: 1st observed with chemical solutions in

1839, by Antoine Becquerel. Then Einstein (1905) and Schottky (1930)
added principle understanding. A 6% silicone cell was made in 1954,
and this technology is used for orbiting space satellites since 1958.

PV effect is light falling on a two layer semi-conductor device produces

a photo-voltage or potential difference between the layers. This voltage
is capable of driving a current through an external circuit and thereby
producing useful work.

Solar kWh
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
1)What is PV Solar Energy
Photo Voltaic (PV)
GHI Global Horizontal
86% of PV market Irradiance

Photo Voltaic (PV) Photo Voltaic (PV)

Silicon 90% of
Thin Film
Crystalline crystalline Si
market
Photo Voltaic (PV) Photo Voltaic (PV) Photo Voltaic (PV) Photo Voltaic (PV)
Mono Poly/Multi Amorphous Thin Non-Silicon Thin
Film Film
Crystalline Crystalline Silicon deposited in a continuous manner on a
Made using saw-cut Caste from ingot of
base material
from single cylindrical melted and such as glass, metal or polymers
crystal of Si recrystallized silicon Thin-film crystalline solar cell consists of layers
about 10m
thick compared with 200-300m layers for
crystalline silicon
cells
1)What is PV Solar Energy
Photo Voltaic (PV)
Mounting
Structures

Photo Voltaic (PV) Photo Voltaic (PV) Photo Voltaic (PV)

FIXED Single Axis Dual Axis
GHI Global Horizontal GTI Global Tilt GTI Global Tilt
Irradiance Irradiance Irradiance
1)What is PV Solar Energy Photo Voltaic (PV)
Grid Tie Inverter

and
1)What is PV Solar Energy Photo Voltaic (PV)
Island Inverter

Diesel Generator
Hydro Plant

and and
Battery Storage
In Containers
) How to make Solar Energy work
for you on a mine ?

Photo Voltaic (PV)

GHI Global
Horizontal
Irradiance
= DNI plus
DHI - Diffuse
Horizontal
Irradiance
ow to make Solar Energy work for you on a mine ? Photo Voltaic (PV)
Grid Tie

Diesel Generator
Hydro Plant

and OPTIO
N
Battery Storage
In Containers
ow to make Solar Energy work for you on a mine ? Photo Voltaic (PV)
Diesel Power

Diesel Generator
Biomass
Hydro Plant

and and
Battery Storage
In Containers
3) What is the Capital and Photo Voltaic (PV)
Operational cost of
a 100MW PV Solar plant.

Johannesburg
- Budget Fixed 1 Axis 2 Axis
Figures
kWp 100 300 100 300 100 300
Annual GWh 194.82 234.51 266.47
Cost /kWp $ 1 250 $ 1 400 $ 1 550
CAPEX [USD
$125.375 $140.42 $155.465
Million]
OPEX [USD
$ 0.627 $ 2.106 $ 3.109
Million]
Approx. Area
4) Typical ROI calculations for a 100MW Photo Voltaic (PV) Fixed
Plane
Fixed Utility power at US$0.14
PV Solar Plant.
Year 1 2Vs Utility
3 Power
4 5 6 10 15 20
Solar Energy
production 194.8 193.4 192.1 190.8 189.4 188.1 182.9 176.6 170.5
[GWh]
Utility Price $
per kWh [USD]
$ 0.140 $ 0.157 $ 0.167 $ 0.177 $ 0.187 $ 0.237 $ 0.317 $ 0.424
0.148
Saving on
$
energy bill $ 27.27 $ 30.22 $ 31.81 $ 33.48 $ 35.24 $ 43.26 $ 55.89 $ 72.21
[USD Million] 28.71
Maintenance
costs [USD $ 0.63 $ 0.66 $ 0.70 $ 0.75 $ 0.79 $ 0.83 $ 1.06 $1.42 $ 1.90
Million]
Net profit $
[USD Million]]
$ 26.65 $ 29.51 $ 31.06 $ 32.69 $ 34.40 $ 42.20 $ 54.47 $ 70.31
28.04
Initial Cost $
[USD Million] -125.38

Interest on
$ $
Money 8% $ -7.15 $ -5.36 $ -3.31 $ -0.96 $ 10.26 $ 31.88 $ 75.01
[USD Million] -10.03 -8.70
Cash flow $ $ $
at is the Capital and Operational cost of a PV Solar plant. Photo Voltaic (PV)
Battery Backup

Improves Power
quality and stabilises
supply

Example Costing:
100 MW for 5 Min = 8,333kWh
Average CAPEX is US$ 900 / kWh =
$75 Million
OPEX is 3% of CAPEX.
pical ROI calculations for a 100MW Fixed PV Solar
Photo Voltaic (PV) Fixed Plane
with Battery B/U vs Diesel
ant (With Battery Backup). Vs Diesel Generator Power
Year 1 2 3 4 5 6 10 15 20
Solar Energy
production 194.8 193.4 192.1 190.8 189.4 188.1 182.9 176.6 170.5
[GWh]
Utility Price per $ $ $
kWh [USD] $ 0.330 $ 0.356 $ 0.466 $ 0.750 $ 1.208 $ 1.946
0.385 0.423 0.512
Saving on
$ $ $ $ $
energy bill [USD $ 64.29 $ 68.95 $ 88.22 $ 96.36
Million] 73.94 80.77 137.12 213.30 331.67
Maintenance
costs [USD $ 3.63 $ 3.84 $ 4.08 $ 4.32 $ 4.58 $ 4.85 $ 6.13 $8.20 $ 10.97
Million]
Net profit [USD $ $ $ $ $ $ $
Million]] $60.66 $ 83.64
65.10 69.87 76.45 91.51 131.05 205.10 320.69
Initial Cost [USD $-
Million] 215.375
Interest on
$ $ $ $ $
Money 8% [USD $-9.65 $ -4.83 $ 0.90 $ 42.58
Million] -17.23 -13.76 7.665 118.94 289.21
Cash flow [USD $ $ $ $ $
Million] $ 51.35 $ 84.54
-171.94 60.22 71.62 99.17 173.63 $324.04 $609.90
Cumulative cash
$ $- $ $ $ $ $1 $4
flow [USD $ 95.78
al Sustainability calculations for a 100 MW Fixed PV Solar Plant.

Year 1 5 10 15 20
Solar Energy
production [GWh]
194.82 189.42 182.88 176.57 170.48

Saving on CO2 197 185 179

Emission (M Ton)
192 300 173 000
700 600 200
Carbon Tax Rate
USD/MT
$ 7.27 $ 10.26 $ 16.53 $ 26.62 $ 42.88
Saving on
Carbon Tax [USD $ 1.44 $ 1.97 $ 3.07 $ 4.77 $7.42
Million]
Cumulative cash
flow [USD $ 1.44 $ 8.41 $ 19.85 $ 36.12 $ 67.46
Million]
Price Increase 8% 10% 10% 10% 10%
Type of Solar Concentrated Solar
Energy
Water Heating Photo Voltaic (PV)
Power (CSP)
Type of Plant Standalone Base Load Power Plant Supplementary Power
Uses the Direct Sunlight
Is a Solar Water Uses Direct or Reflected
and concentrates it on a
Heater, used only Sunlight onto a two layer
Description of Heating Fluid. This heat is
for heating water, it semi conductor material
System used through a heat
does not produce to produce a Voltage
exchanger to produce
Electricity potential (Electricity)
steam to drive a turbine
Size of System 100 Employees 100MW 100MW
The heat can be stored in Batteries, Flywheel or
Storage Hot Water usually
specially designed vessels Pumped Storage
System Used stored in a Geyser.
or bunkers. Systems.
CAPEX US$ 45,000 < US$ 885 Million < US$ 215 Million
OPEX / Year US$ 450 US$ 16 Million US$ 3.63 Million
ROI vs Utility
< 4 Years Not Suitable 6 Years
Power
ROI vs Diesel
9 Months 7 Years 4 Years
Power
CO2 Saving 200T > 500 000T 198 000T
Carbon Tax /
Presentation Sponsored By:

Norman@age.co.za
www.age.co.za
Stand 1208

Tomorrows Technology, TODAY.