Economic and Technical Evaluation of Solar-Assisted Water Pump Stations For Mining Applications: A Case of Study
Economic and Technical Evaluation of Solar-Assisted Water Pump Stations For Mining Applications: A Case of Study
Economic and Technical Evaluation of Solar-Assisted Water Pump Stations For Mining Applications: A Case of Study
5, SEPTEMBER/OCTOBER 2016
Abstract—Nowadays, energy and water are some of the most this increasing demand, the industry is committed to seek new
important issues facing the mining industry. Many mines are lo- sources such as seawater. Nowadays, the water from the sea
cated in desert areas, and they need to pump water from isolated
constitutes only the 8% of the total fresh-water withdrawals
wells or from the ocean. Therefore, in order to satisfy the water
demand, many high-power water pump stations are required. The made by Chilean copper industry, a value which is expected
operation of these systems is expensive due to the high energy to increase in the near future. As a matter of fact, seawater
cost. This paper presents a case of study of a solar photovoltaic consumption in copper mining increased 37% between 2012 and
(PV) system to assist the operation of a water pump station of a 2011, and by 2021, it will account 23.9% of the total fresh-water
mineral processing operation in Chile. An economical analysis is consumption [2]. In order to transport water, mining companies
carried out with respect to different design variables and the per-
centage of the total power required for operating the system in the have invested in water pump stations located in distant places in
less favorable conditions (degree of assistance). It is demonstrated the desert and on the ocean shores. These pump stations require
that the maximum net present value is obtained for the maximum several megawatts due to water volume, altitude, and distances
assistance, i.e., supplying the full energy in the less favorable con- involved.
ditions. However, the internal rate of return will be maximized at Renewable energies are becoming an attractive alternative for
the point where the system only supplies the energy to satisfy the
full demand at the most favorable conditions. Finally, the study mining companies as a cost-efficient energy source to address
shows that from an economical point of view, PV technology is an the challenge of improving their cost structure and diminishing
attractive alternative to support the mining operation at present the risk associated with the volatility of the energy prices [3].
time. Chile has a privileged position in terms of the abundance of
Index Terms—Mining industry, power generation economics, solar resources, and recently, many mines have started to adopt
pumps, solar power generation. thermal and photovoltaic (PV) technologies in their operations
[4], [5].
In order to decrease the operational costs associated with
I. INTRODUCTION
the electrical energy required to drive pumps, PV solar plants
INING operations located in remote deserted areas are
M facing important challenges in order to deal with scarce
water resources and high energy cost. According to Ernst &
represent an attractive solution. This study proposes the use of
PV systems to assist the operation of pumps stations, i.e., they
do not replace existing systems but only supply energy during
Young [1], the access to water and energy is within the ten those periods with solar radiation.
most important risks facing the mining industry especially for Technoeconomic analysis of large PV system addressing dif-
projects in South America and Africa. In Chile, the energy ferent scenarios has been carried out by several researchers. For
costs have increased by 11% annually since 2000, being the instance, a performance evaluation and cost-benefit analysis of
electricity price one of the highest in Latin America due to the large solar PV installations for dwelling units in a Western Aus-
reliance on fossil fuels. Water consumption in Chile’s copper tralia mining company in terms of carbon tax and mounting
mining industry will increase 66% by 2025 [2]. In order to satisfy methods is presented in [6]. In [7], Monte Carlo methods along
with investment models have been proposed to analyze large-
Manuscript received July 31, 2015; revised December 4, 2015 and March scale solar PV projects for Ontario, Canada. This study analyzes
14, 2016; accepted April 11, 2016. Date of publication May 17, 2016; date of the expected profitability in terms of internal rate of return (IRR)
current version September 16, 2016. Paper 2015-MIC-0659.R2, presented at and net present value (NPV) of a PV project to assist the oper-
the 2015 IEEE Industry Applications Society Annual Meeting, Addison, TX,
USA, Oct. 18–22, and approved for publication in the IEEE TRANSACTIONS ON ation of pump stations in a regulated system. In this case, the
INDUSTRY APPLICATIONS the Mining Committee of the IEEE Industry Applica- incomes of the project will be associated with substitution of
tions Society. This work was supported by the Solar Energy Research Center energy bought at a marginal cost (MC) and selling of energy
(SERC-Chile) under Grant FONDAP #15110019.
D. Sbarbaro and L. Moran are with the Department of Electrical Engi- excess at the average market price (AMP).
neering, Universidad de Concepción, 4070409 Concepción, Chile (e-mail: This paper is organized as follows. Section II describes the
dsbarbar@udec.cl; mmoran@udec.cl). methodology to be used. Section III presents the design speci-
M. Montorfano is with Inforsa, Nacimiento, Chile (e-mail: mmotorfarno@
udec.cl). fications and main considerations imposed by this application.
Color versions of one or more of the figures in this paper are available online Section IV describes the main component of the proposed sys-
at http://ieeexplore.ieee.org. tem. Section V presents the economic evaluation and sensitivity
Digital Object Identifier 10.1109/TIA.2016.2569415
analysis. In Section VI, some final remarks are given.
0093-9994 © 2016 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.
See http://www.ieee.org/publications standards/publications/rights/index.html for more information.
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MONTORFANO et al.: ECONOMIC AND TECHNICAL EVALUATION OF SOLAR-ASSISTED WATER PUMP STATIONS 4455
TABLE I
STATIONS AND THEIR TECHNICAL CHARACTERISTICS
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4456 IEEE TRANSACTIONS ON INDUSTRY APPLICATIONS, VOL. 52, NO. 5, SEPTEMBER/OCTOBER 2016
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MONTORFANO et al.: ECONOMIC AND TECHNICAL EVALUATION OF SOLAR-ASSISTED WATER PUMP STATIONS 4457
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4458 IEEE TRANSACTIONS ON INDUSTRY APPLICATIONS, VOL. 52, NO. 5, SEPTEMBER/OCTOBER 2016
TABLE III
INVESTMENTS AND OPERATIONAL COSTS
TABLE IV
MAIN FINANCIAL INDICATORS
Indicator value
Fig. 8. NPV for different percentages of assistance.
NPV 6 500 000 US$
IRR 14.01
Payback 6.48 years
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MONTORFANO et al.: ECONOMIC AND TECHNICAL EVALUATION OF SOLAR-ASSISTED WATER PUMP STATIONS 4459
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38th Photovolt. Spec. Conf., 2012, pp. 1–3. application of medium voltage ac drives, large-power cycloconverter drives for
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[19] L. M. Moore and H. N. Post, “Five years of operating experience at a cepción Medal of Honor for achievement in applied research. In 2012, he
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