We are taking you into an important transformation in the energy mining industry with our interview with Ali Emiroğlu, President of the Turkish Miners’ Association (TMD). As sustainability and environmental practices are gaining increasingly important in the mining industry, Mr. Emiroğlu gives us valuable insights into how the mining industry addresses renewable energy solutions and challenges. Join us as we explore innovative strategies and promising initiatives shaping the future of mining and supporting a sustainable approach to a greener tomorrow.
Here are the details of our interview…
What are the benefits of using renewable energy in the mining industry?
The world population and, accordingly, global energy consumption continues to increase every year. By 2035, it is estimated that the energy consumed will be twice the amount consumed in 1998. The tendency to use renewable energy sources for electricity production is on the agenda worldwide against the rapid destruction of natural resources and the damage these resources cause to the environment.
The Turkish mining industry also follows the green transformation very closely. Many mining companies in our country have made and continue to invest in renewable energy. The use of renewable energy has significant advantages for the mining industry. Environmental sustainability is one of them. In other words, the mining industry can achieve its zero carbon targets thanks to using renewable energy sources such as solar, wind, hydroelectric and geothermal. We protect natural habitats, water resources, and soil thanks to our green energy investments. On the other hand, high energy costs are one of the most critical problems in our sector. Using renewable energy sources, mining enterprises can produce energy independently of fossil fuel costs, reduce energy costs to deficient levels and increase operating profitability. As it is known, instability in the supply of fossil fuels or price fluctuations adversely affects the energy supply and the continuity of our businesses. On the other hand, renewable energy sources are based on local sources, making the energy supply safer.
What are the different types of renewable energy used in the mining industry?
The mining industry mainly uses solar and wind energy. Compared with Europe and other countries, Turkey has a very advantageous position in benefiting from solar energy. Because of this advantage, many mining enterprises obtain energy with solar panels installed on their roofs or lands. Renewable energy technologies are constantly being developed. The mining industry closely follows these developments and tries to bring the latest technologies to our industry.
What are the incentives for using renewable energy in the mining sector?
To encourage the use of renewable energy in mining license areas, the phrase “Unlicensed power generation facilities based on renewable energy sources established to meet the electrical energy needed within the scope of mining activities” was added to the definition of infrastructure facilities contained in the Mining Law and Law No. 7451 dated 4.4.2023. The purpose of adding this phrase is to cover the electrical energy needed for mining activities in treasury land, pasture, forest areas where mining is carried out, solar, wind, etc. It was to encourage the establishment of unlicensed power generation facilities based on renewable energy sources. Providing the establishment of renewable electricity facilities such as GES, RES based on the amount of electricity consumed by companies without obtaining a license with the Regulation on Unlicensed Electricity Generation in the Electricity Market was an encouraging arrangement, especially for mining companies that have to operate away from infrastructure services. In addition, investors in the mining sector can already benefit from existing investment incentives.
What are the specific challenges the Turkish mining sector faces in adopting renewable energy?
Although companies that want to establish renewable energy production facilities, such as GES, and RES, in their license areas or outside the license areas solve the ownership problem and do a suitable project, the projects are evaluated by the electricity distribution companies as having insufficient transformer capacity, limited network lines, unsuitable energy transmission lines, etc. negatively considered and rejected for reasons. For this reason, unfortunately, renewable energy projects in our sector cannot be carried out sufficiently.
Another problem is that there are attempts to prevent the application of the phrase “Unlicensed energy production facilities based on renewable energy resources, established to meet the electrical energy needed within the scope of mining activities”, which was added to the definition of infrastructure facility that I just mentioned, in forest areas. It is seen that the provision of “not allowing unlicensed energy production facilities based on renewable energy sources in productive forest areas” was included in the Draft Regulation on the Implementation of Article 16 of the Forestry Law by the forest authority. With this provision in the Draft Forest Regulation, the incentive added to the definition of infrastructure facility in the Mining Law on renewable energy is rendered ineffective. If the regulation enters into force in this way, the incentive introduced by the law for establishing renewable energy facilities in mining areas will be rendered inapplicable by the regulation. We recommend installing Solar Energy OIZs in suitable areas. Problems related to the connection are also eliminated by allocating a place to the companies that consume energy from the SPP-OSBs in the capacity recognized by the law in return for a price. In this way, the sector has the opportunity to take an essential step in green transformation, sustainability and reducing its carbon footprint.
What are the key recommendations for the Turkish government and the Turkish mining industry to accelerate the adoption of renewable energy in the mining industry?
As it is known, since we have values that must be produced from where the mines are formed, it is out of the question for us to make from an alternative place, like investments in other sectors. Therefore, encouraging mining, which is already operating under challenging conditions, by meeting the need for renewable energy would be the right approach in terms of public interest. Parallel to this goal, electricity distribution companies will facilitate transformer output for companies that want to invest in renewable energy in mining areas, and Türkiye Elektrik Üretim A.Ş. (TEİAŞ) General Directorate should play an active role and solve the problems experienced in the use of pasture, forest and treasury lands. It is vital to develop various policies and incentives by public authorities to accelerate the transition of the mining industry to green energy in Turkey.
The trend towards renewable energy and electric vehicles has rapidly increased in recent years to combat climate change. We know minerals are used extensively in renewable power plants and electric cars. Can we get your evaluations on this matter?
Using green energy resources is one of the most essential tools to combat the climate crisis. Turkey’s installed power in renewable energy is also increasing day by day. Currently, most of our total installed power comes from renewable resources. Clean energy sources, especially wind and solar energy, will play a leading role in Turkey’s growth plans for electricity generation capacity in the upcoming period. The rapid orientation to renewable energy sources globally and in our country increases the mining sector’s importance even more. Because mines also play a critical role in renewable energy. For example, an onshore wind turbine requires eight times more minerals than a natural gas-based power plant. On the other hand, offshore wind farms need 12 times more minerals than an equivalent gas power plant. It is possible to make a difference in renewable energy by developing mining activities and providing a safe supply. In addition, mines have a significant share of electric cars. Electric vehicles use five times more minerals than conventional fossil fuel vehicles. The mining industry is of vital importance in the green transformation. Battery technology is also developing rapidly. We’ll also see a broader range of battery types requiring different minerals. We are starting to move away from cobalt used for battery cathodes. However, while this will reduce the demand for cobalt, nickel or lithium will increase the demand even more. Today, the climate crisis negatively affects all countries at the global level. Critical mines are needed to achieve this target in the world where the target of zero emissions by 2050 is spoken. Our country has 80 kinds of mines and 90 available minerals worldwide. Sixty varieties of it are produced. As a country rich in mining diversity, we have the potential to make a difference in our future, and our industry is ready to do so with a responsible mining approach.
+90 532 585 51 95
+90 532 585 51 95