Although much of the journey has already been completed, there is still some way to go before it can be said that mining operates entirely on renewable energy. For companies in the sector, this is one of their priorities, and current efforts are focused on decarbonizing complex processes such as heavy machinery and high – tonnage transport fleets.
The widespread adoption of renewable energy in Chile, which has positioned the country among the world leaders in its use, has gone hand in hand with the mining industry. Mining was the first sector to embrace renewables on a large scale, recognizing the potential of combining the country’s abundant solar radiation and wind resources with its own energy needs. This was further supported by the industry’s commitment to advancing a decarbonization agenda—an effort undertaken by all major mining companies—as well as the geographical proximity between renewable generation hubs and large mining operations, particularly in northern Chile.
As a result, several companies in the sector now meet all their electricity needs through supply contracts based on solar or wind power. At an aggregate level, the figures are encouraging. However, although the remaining gap is not particularly large, reaching 100% will require technological development, structural changes to the electricity system and, above all, coordinated efforts among different stakeholders.
Another contributing factor is that the minerals produced by this industry are essential to the energy transition—Chilean copper and lithium, for example, are fundamental to global electromobility. In this sense, mining effectively plays a dual role: leading the energy transition while supplying the minerals that make this process possible.
And although the progress made has been remarkable, there is still ground to cover, particularly when it comes to replacing fuels for which there are currently few competitive alternatives, such as diesel used by large mining haul-truck fleets (CAEX).
There is also another equally complex challenge: enabling medium- and small-scale mining companies to follow the same path already taken by large-scale mining, something that is more difficult for them due to their smaller scale.
Where We Are Headed
The targets are quite ambitious. According to Chile’s National Mining Policy 2050, the main objective is for 90% of the electricity contracted by the mining sector to come from renewable sources by the end of this decade, with that figure reaching 100% by 2050. This is according to the Chilean Copper Commission (Cochilco), whose Director of Studies and Public Policy, Patricia Gamboa, says this will be one of the mining industry’s key challenges in the coming years.
“The use of renewable energy is fundamental for mining. According to our calculations based on the 2024National Energy Balance, the copper industry accounts for approximately 15% of the country’s final energy consumption. Of that total, 51.3% corresponds to electricity and 48.7% to the use of fossil fuels, mainly diesel. This distinction is important because the transition toward renewable sources has been concentrated in the electricity component, where significant progress has been made: in 2024, 78% of the electricity consumed by the industry came from renewable sources, driven by the mining companies themselves,” Gamboa notes.
She also points to what she considers the greatest challenge. “A significant share of the sector’s electricity consumption has already been decarbonized. The main challenge is to make progress in replacing fossil fuels,” she warns.
Bastián Del Mauro, Mineral Commodities Market Analyst at Plusmining and a supporter of Compromiso Minero, shares a similar view. In his opinion, renewable energy sources are essential for mining, and their share of total consumption is related to the scale of mining operations.
“Renewable sources are now a central factor. According to Cochilco, nearly 80% of the electricity consumed by copper mining in 2025 came from renewable sources. Several companies already operate with 100% renewable electricity supply, including BHP, Antofagasta Minerals, Anglo American, Collahuasi, Sierra Gorda, Glencore, Lundin Mining and Enami,” Del Mauro says. He adds that although copper mining accounted for approximately one-third of Chile’s electricity demand in 2025, this consumption is expected to increase by 20% by 2034, as deposits age and require more energy to exploit.
“Renewable electricity is strategic, not merely a matter of reputation. It ensures that this increase in consumption does not translate into higher emissions and reduces the sector’s exposure to electricity generation from fossil fuels,” he says.
According to Del Mauro, current figures suggest that adoption—mainly through power purchase agreements (PPAs)—will reach 98.6% renewable coverage by 2030. However, this figure would subsequently fall to around 93%, not because of a shortage of renewable resources, but because the projection only takes into account contracts that have already been signed.
“The challenge is to secure contracts in a timely manner and extend adoption beyond the companies that are already leading the way. The second obstacle is transmission and storage. There is no shortage of renewable generation; what is lacking is the ability to deliver it to where and when mining operations need it.
In 2025, Chile’s National Electricity Coordinator reported that 5,700 GWh of solar and wind power could not be injected into the grid due to network congestion and timing mismatches. Since mining operations run 24/7, further progress depends on expanding transmission networks and storage capacity,” he adds.
The “Last Mile” to Reach 100%
What remains to be done for the mining industry to achieve 100% renewable energy use? Patricia Gamboa of Cochilco says that technologies designed to replace processes that currently rely on combustion, such as large-scale machinery, still need to evolve and provide viable alternatives.
“The main obstacle is having technology capable of matching the power currently provided by burning fossil fuels in high-tonnage equipment. Alternatives with sufficient autonomy, such as battery-electric or hydrogen-powered mining haul trucks (CAEX), have not yet reached the technological maturity required to operate at that scale. This bottleneck is becoming even more restrictive because of a structural trend in mining: the sector’s energy intensity has been increasing as a result of declining ore grades and increasingly deep open pits. This translates into longer haulage distances to move the same amount of ore and, consequently, greater fuel consumption precisely in the segment where viable replacement alternatives are not yet available,” says the representative of the Chilean Copper Commission.
From the perspective of energy consumers, other issues are also being raised, including the design of the electricity system, which has not taken into account certain aspects that are critical to the operation of renewable energy sources, thereby increasing costs.
Juan Ignacio Gómez, Executive Director of the Association of Electricity Customers (ACENOR A.G.), argues that “the main obstacle lies in side payments—that is, all the costs associated with operating the electricity system that are passed on to non- egulated customers. As the penetration of variable renewable energy increases, a system of ancillary services is needed to ensure safe operation at minimum cost. As long as side payments and, in particular, ancillary services remain at levels of US$9/MWh, fully electrifying all forms of consumption will continue to be very difficult because it would entail higher costs. To achieve that goal, all components of side payments need to be rationalized.”
The specialist also argues that, particularly following recent system-wide blackout events, system operation
has tended to prioritize security over minimum-cost operation, even though the law requires a balance
between the two objectives. “Therefore, rather than legal or regulatory reforms, the main requirement is to
recognize that the electrification of energy consumption and the transition to renewable energy require
pragmatism: an expensive system is just as undesirable as an insecure one,” Gómez concludes.
Highlighted Quotes
Patricia Gamboa, Director of Studies at Cochilco: “The use of renewable energy is fundamental for mining. According to our calculations based on the 2024 National Energy Balance, the copper industry accounts for approximately 15% of the country’s final energy consumption.”
Juan Ignacio Gómez, Executive Director of ACENOR: “Rather than legal or regulatory reforms, the main requirement is to recognize that the electrification of energy consumption and the transition to renewable energy require pragmatism: an expensive system is just as undesirable as an insecure one.”
Source: La Tercera Minería