A Mining Perspective on the Potential of Renewable Electricity Sources For Operations in South Africa: Part 2 – A Multi-Criteria Decision Assessment

"The first in this series of two papers, on the potential of renewable electricity sources for mining operations in South Africa, investigated the internal structure of mining corporations to evaluate feasible alternative electricity sources that were identified as through earlier research. The purpose of this paper is to combine current knowledge about the external macroeconomic and the internal environments to produce a clear picture of how renewable sources of electricity could perform from the perspective of mining corporations in South Africa. The multi-attribute value theory (MAVT) approach was adapted to structure the research and results. The model was fed with real-time data provided from five different energy companies and four mining corporations operating in South Africa. The results show that the performance of hybrid versions of the currently used electricity sources (diesel generators and Eskom grid connection) with solar PV and onshore wind is favourable compared with the current sources alone. The advantage of diesel generators is significantly greater than that of the Eskom grid connection. By combining the macroeconomic influences with the MAVT results, hybrid solar PV versions are identified as having the greatest potential. In second place are hybrid wind solutions, which have the shortcoming that good wind conditions occur only in coastal regions where there are fewer mining activities. Geothermal hybrid versions are the least favourable owing to the lack of service infrastructure and high initial investment costs.IntroductionRecent developments in the macroeconomic environment necessitate an investigation of the internal structure of mining corporations to evaluate possible alternative electricitygenerating sources (Roehrl and Riahi, 2000). To be able to combine current knowledge of macroeconomic factors and the internal structure of mining corporations, the research process is presented in two papers. The first paper (Votteler and Brent, 2016) investigated the internal structure and argued that a strategic tool should be used to evaluate electricity sources from the perspective of mining corporations. The multi-criteria decision analysis (MCDA) approach was selected as the most appropriate strategic tool. Based on a literature review of previous similar MCDA approaches in energy planning, it was concluded that no adaptation of MCDA methods could be found from a corporate, mining, or South African perspective. Finally, the paper investigated the internal evaluation structure in collaboration with mining corporations, by identifying the criteria they use to evaluate electricity sources."