- Why Energy OPEX Has Become Critical in Mining
- The Real Cost of Diesel: What You See and What You Don’t
- 5 Levers to Reduce and Stabilise Energy Costs
- How Nomad’s Mobile Solar Energy Fits In
- Frequently Asked Questions
The price per litre of diesel is only the tip of the iceberg. In a remote mining operation, the real energy cost is hidden in supply logistics, storage and unplanned downtime. At Nomad Solar Energy, we tackle these hidden costs with mobile solar energy. Here’s how.
For most mining operations, diesel is still the energy backbone: it powers generators, auxiliary systems and equipment in areas the grid doesn’t reach. But something has changed in recent years. Diesel has stopped being a stable, predictable cost and has become one of the most volatile —and worst-controlled— line items in mining OPEX.
Reducing that cost is no longer just about negotiating a better price per litre. It’s about understanding where the spend really comes from and tackling the line items that almost never show up on the fuel invoice.
Why Energy OPEX Has Become Critical in Mining
Energy has stopped being a secondary cost and become a strategic variable of the operation. Four factors explain the shift:
- Exposure to international oil prices, which passes their volatility straight through to the site.
- Progressive withdrawal of fuel subsidies in several mining markets, with sharp price increases.
- Increasingly remote operations, where getting diesel to the point of consumption is more expensive and more complex.
- The need for geopolitical independence, because the less an operation depends on diesel, the less exposed it is to international conflicts, supply tensions, regulatory changes or disruptions in the global energy market.
The result is a less stable cost per tonne and financial planning that loses precision. When energy spend becomes unpredictable, decisions turn more conservative and margins suffer.
The Real Cost of Diesel: What You See and What You Don’t
The most common mistake when calculating a mine’s energy cost is to look only at the price per litre. That’s the visible cost. But the total cost of ownership of diesel on site includes several layers that are rarely accounted for together.
The Visible Cost: The Price Per Litre
It’s the only figure that shows up clearly on the invoice and, paradoxically, it’s usually the part of the problem you have the least control over, because it depends on the international market.
The Hidden Cost of Logistics
Getting fuel to a remote operation has a cost of its own: transport in tanker trucks, distance and the condition of access roads, on-site storage, losses and the risk of theft. The more isolated the operation, the more this hidden cost weighs, and it can end up matching or exceeding the price of the fuel itself.
The Cost of Unplanned Downtime
A supply shortage, a generator breakdown or a delay in fuel delivery translates into lost production time. That impact doesn’t appear on any diesel invoice, but it’s usually the most expensive of all.
5 Levers to Reduce and Stabilise Energy Costs
Reducing diesel cost sustainably means acting on all five levers at once, not just on price.
1. Reduce OPEX From Consumption, Not Just From Price
If part of consumption is covered by a predictable-cost source, fuel, maintenance and the associated logistics all fall at the same time. It’s the lever with the greatest compound effect.
2. Reduce Logistics Dependence
Fewer litres to transport means fewer tanker trips, less storage and less exposure to supply cuts. The operation gains autonomy from third parties.
3. Stabilise Energy Costs
Adding solar energy to the mix introduces a source whose cost doesn’t fluctuate with the oil market, restoring predictability to the budget and the cost per tonne.
4. Minimise Downtime
A mobile solar energy source with storage reinforces operational continuity and reduces dependence on a single supply scheme, protecting the operation against logistical incidents, fuel volatility or grid access limitations.
5. Optimise Rather Than Replace
There’s no need to electrify the entire mine. The most applicable approach is to intervene at the points where diesel generates the most cost, risk or inefficiency, which lowers the technical barriers to adoption.
The key idea: the goal isn’t just to spend less, but to regain control over energy cost, turning it into a predictable, manageable and optimisable variable.
How Nomad’s Mobile Solar Energy Fits In
The Nomad Energy Box is a plug & play mobile solar generator that deploys directly on site, with no civil works or permanent infrastructure. It’s designed for off-grid operations and integrates with the systems you already have.
- Hybrid model: solar energy covers most of the consumption and the diesel generator stays as backup, reducing its operating hours.
- Deployment without civil works: it’s transported, deployed and connected, shortening commissioning times.
- Different capacities: available in Nomad Energy Box 10 and Box 20 formats depending on each site’s demand.
The effect on OPEX is direct: less fuel, less supply logistics and less maintenance, with a far more stable energy cost. You can see more cases and applications on our mining solutions page.
Frequently Asked Questions
Do you need to electrify the entire operation to reduce diesel consumption?
No. Nomad lets you bring mobile solar energy into specific points of the operation where diesel generates the most cost, logistics dependence or inefficiency. Its mobile solar generators deliver electricity directly on site, with integrated storage and no need for civil works. This way, the operation can start by reducing fuel consumption in auxiliary loads, remote areas, camps, pumping, communications or other specific loads, without having to redesign its entire energy infrastructure from day one.
What is the hidden cost of diesel logistics?
It’s all the spend involved in getting fuel to and keeping it on site that doesn’t appear in the price per litre: tanker transport, distance, storage, losses, theft and generator maintenance. In remote operations it can match or exceed the price of the fuel itself.
Does mobile solar energy work in remote and off-grid operations?
Yes. Mobile solar generators are designed for areas without an electrical grid. The Nomad Energy Box deploys on the ground, with no civil works, and generates energy at a predictable cost at any location.
How long does it take to deploy a Nomad solar generator?
A Nomad mobile solar generator can be deployed and operational in under 3 hours. As a plug & play system, it requires no civil works or permanent infrastructure: it’s transported to the site, deployed and connected to the existing operation, drastically reducing commissioning times compared with a fixed installation.
Does solar energy replace the diesel generator?
Not necessarily. The most efficient approach is usually hybrid: solar takes on most of the consumption and diesel acts as backup. The goal isn’t to replace, but to optimise.