Rapid growth
In 2017, a high-profile bet between billionaires Elon Musk and Mike Cannon-Brookes put Battery Energy Storage Systems (BESS) on the global map, Hornsdale Power Reserve in South Australia to be precise. Eight years on, Australia has firmly established itself as a global leader in battery storage. The country’s operational BESS capacity is projected to increase from 2GW in 2024 to approximately 9-12MW by 2027 thought to 18GW by the end of 2035.
Australia’s mining industry is now following suit, rapidly adopting BESS to meet its unique energy needs. Mining operations demand a continuous, reliable power supply to maintain production and ensure worker safety—traditionally relying on diesel generators as backup. However, escalating pressure to decarbonise, coupled with rising grid electricity costs and falling renewable energy prices, is driving the shift toward on-site energy generation and storage.
BESS solutions now extend far beyond emergency backup. They are integral to enabling the broader adoption of solar and wind power, particularly at remote sites with limited infrastructure. By storing energy—either from renewable sources or the grid—during low-demand periods, mines can discharge power when needed, improving energy reliability and cost control. With an estimated 35 per cent of Australia’s 400 mines being off grid, growth of the BESS industry is set to continue to accelerate.
Case Study: Agnew Gold Mine
A strong example is Gold Fields’ Agnew Gold Mine, located 1,000km northeast of Perth. The mine features Australia’s largest hybrid renewable-energy microgrid, developed by distributed energy producer EDL. The system includes:
- 4MW solar farm
- 18MW wind capacity
- 21MW gas/diesel power plant
- 13MW/4MWh Saft lithium-ion BESS
This project demonstrates how advanced BESS can integrate with other energy systems to deliver reliable, low-emission power in even the most remote mining locations.
Risk management considerations
While the benefits are compelling, BESS technology in mining is still in its early stages of adoption. It is vital for mine operators to proactively identify, assess, and mitigate the unique risks that BESS introduces. Failure to manage these risks could undermine its long-term value.
Thermal runaway – placement, separation & ventilation
Thermal runaway is one of the most critical risks associated with BESS. Proper placement is essential—batteries should be installed away from critical infrastructure, high-traffic zones, and populated areas. Adequate spacing between battery units helps prevents fire propagation, and robust ventilation systems help maintain safe operating temperatures and disperse flammable gases.
Loss example:
In 2021, a fire at a large Tesla battery installation near Geelong during testing and commissioning highlighted the importance of risk controls, find out more here.
Bellrock has access to global insurer guidelines for both Lithium Iron Phosphate (LFP) and Nickel Manganese Cobalt (NMC) systems, helping clients implement best-in-class design and installation practices.
Testing, commissioning, maintenance & upgrades
Robust testing and commissioning protocols, paired with ongoing maintenance, are key to safe and effective BESS operations. Frequent inspections, real-time monitoring, and the use of Original Equipment Manufacturer (OEM) recommended components will help pre-empt failures. As battery technologies evolve, timely upgrades are also critical to maintaining performance and compliance with the ever-changing safety standards.
Bellrock leverages global loss data and insurer feedback to advise clients on the most reliable and insurable equipment and technologies.
Emergency response & fire protection
Mining operations in remote locations often lack immediate access to emergency services. As such, site-specific emergency response plans must account for local firefighting capabilities and ensure suitable back-up plans are in place.
While lithium-ion battery fires are difficult to extinguish, early detection and containment are critical. Automatic fire suppression systems (e.g., sprinklers) are essential, especially when batteries are housed within buildings.
Use of non-combustible enclosures
Constructing BESS enclosures with fire-resistant materials such as concrete, steel, or brick can prevent or slow fires from spreading, provide invaluable response time, and safeguard nearby infrastructure and personnel.
Conclusion
BESS is more than just a backup system—it’s a strategic enabler for energy transformation in mining. However, its benefits are only fully realised when the risks are proactively managed. With the right design, oversight, and response plans, BESS can drive operational efficiency, reduce emissions, and future-proof mining operations in an increasingly carbon-conscious world.
Bellrock stands ready to advise mining companies on insurer expectations, OEM reliability, and site-specific safety strategies to help unlock the full value of BESS technologies. Contact an Advisor to learn more.
