ArticleCity.comArticle Categories How an Energy Efficiency Strategy Can Maximise Your Bottom Line

How an Energy Efficiency Strategy Can Maximise Your Bottom Line

Originally posted on


A smart energy efficiency strategy provides a framework for managing energy usage. It offers ways to undertake effective energy use through measurement, analysis and identification and implantation of energy efficiency opportunities.

As more mining companies and remote sites are subjected to the financial pressures of fluctuating prices and high-energy demands, improving efficiency across all operational aspects is both valuable and critical.

Here is how you can benefit from an energy efficiency strategy to manage usage, minimise costs and maximise your bottom line:

Benefits of an Energy Efficiency Strategy

Sustainability is a big word. But today, more businesses are making it a priority to reduce their carbon footprint and save on utility bills to initiate a sustainable future.

The benefits of energy efficiency involve creating a more sustainable and secure energy system for mining and remote sites.  An effective energy strategy should encourage smart power generation.

Mining and remote sites can benefit from an energy strategy in the following ways:

  • Offers a comprehensive insight into how much energy is being used, wasted or lost through energy overheads.
  • Identifies energy use variability and its underlying causes.
  • Determines whether systems, machinery and equipment are operating efficiently, according to design and work schedules.
  • Provides a competitive advantage in a world of increasingly slim margins.
  • Maintains a stronger market position through improved decision-making and asset performance.
  • Measures both financial and non-financial indicators to potentially increase overall profitability.

Mining companies can work with a specialist remote power supplier to create a detailed energy strategy. By working with a reputable supplier to deliver power to remote sites, you can increase fuel efficiency, limit power outages (and as a result, improve productivity), keep machinery maintained and serviced and keep your finger on the pulse with industry developments.

Determine Your Power Requirements

There is no one-size-fits-all solution for power requirements. Each site, depending on the unique needs of the mine, will vary in power usage.

Your mining power system will need to meet operational requirements and enable the business’s growth strategy to work effectively. This can be achieved through a specialist remote power supplier or energy audit.

How to Meet Varying Power Demands

How much power will you require and can your power plant sustain this?

It’s important to take into consideration the different power demands your site faces. These power requirements change over time, so scalability of power capacity is a key factor to weigh up.

According to Mining Magazine, energy is one of the largest costs at approximately 30% of total operating expenses in the industry. As costs continue to rise and supply issues increase, mining companies can find that their  bottom line is impacted. However, an energy strategy can be effective in mitigating the damage and catering for power demands.

Sites may benefit from investing in contract power or power rental to reduce fuel usage, one of the biggest costs in the mining sector. Fuel usage is typically 85% of the total cost of supplying electricity to mine operations. However, power generation companies like KPS Power Africa can understand fuel usage and costs relevant to your site and tailor sustainable solutions to fit. This is essential to meeting varying power demands and encourages a more energy conscious mine site.

Power Rental vs. Renewable Energy

Because of the implementation and infrastructure costs involved, it can sometimes be cost-prohibitive to buy, install and maintain your own power plant.

Power rental provides a flexible, cost-effective solution as there is no vast capital outlay. However, to be efficient, the power system must be specifically designed to meet the requirements of the mine site.

Renewable energy, on the other hand, is key to reducing power generation costs. Whether through solar hybrid power, wind or water power, mining companies can minimise energy costs and boost their green credentials. It also opens the door for clean energy funding opportunities and establishes your business as a green-star mining site, offering a valuable competitive edge.

Your site’s power capacity is core to maximising production, incorporating power flexibility and reducing energy usage and costs. Efficiency is crucial. And energy sources that are reliable and resourceful can help your mining site maintain a healthy profit margin.

For more information on energy efficiency strategies or how our our independent power solutions could benefit your business, please contact KPS Power Africa today.

No Comments

Sorry, the comment form is closed at this time.