South Africa won’t abandon coal
President Cyril Ramaphosa says that abandoning coal as a fuel source is an idea that must be dispelled.
South Africa faces a catch-22 where it must reduce reliance on coal to align with its Just Transition framework; however, is still heavily reliant on coal in light of the immediate energy crisis.
Responding to the debate over the State of the Nation Address (SONA) on 16 February, the president said that coal-fired power stations still provide 80% of the country’s energy source.
As a result, he said that this will still provide the bulk of South Africa’s ‘base load’ supply into the future.
“We are committed to a future energy mix that consists of a diversity of energy sources, including coal, renewables, nuclear, gas, hydro, storage, bio-mass and other forms of energy,” said Ramaphosa.
“Through the work of the Presidential Climate Commission, the Presidential Climate Finance Task Team led by Mr Daniel Mminele, government departments and stakeholders, we have developed a clear, just and inclusive path towards a low-carbon economy and society,” said Ramaphosa.
In the latter parts of 2022, Cabinet approved the $8.5 billion plan to move away from coal. The plan is made up of foreign climate finances pledged by some of the world’s richest nations to re-purpose and close coal-fired power plants in South Africa.
The US, UK, Germany, France, and the European Union are part of South Africa’s Just Energy Transition Partnership, which is a model for similar agreements with developing countries like Vietnam, Indonesia, and India that rely heavily on coal.
Despite this, there is no sign from the government to shut down the country’s recently built mega power plants – Medupi and Kusile – that can potentially generate roughly 8,000 megawatts, when they’re actually running.
The government has committed to achieving net-zero greenhouse gas emissions by 2050 and has taken measures to increase the use of renewable energy from private suppliers. However, this has been met with resistance from unions representing coal miners, who are concerned about potential job losses.
The approval of the just energy transition and the shift away from coal has also been divisive among political players, with coal backers such as the minister of mineral resources and energy, Gwede Mantashe, who consistently reinforces his stance that coal is the main driver for energy resilience in the country.
Pollution
The continued use of already failing coal-fired power stations and plans for boosting emergency generation is threatening the health of South Africans.
Eskom is currently awaiting approval to release more of a pollutant linked to ailments ranging from asthma to heart attacks.
The company is attempting to reduce the level of rolling blackouts by bypassing a flue-gas desulfurization unit, which removes toxic gas from emissions at three of the six units at Kusile – the biggest coal power station outside of Asia.
According to Lauri Myllivirta, the lead analyst at the Centre for Research on Energy and Clean Air, bypassing the pollution filter will likely increase the company’s sulphur dioxide emissions by eightfold.
Exportation
Coal is also a key source of foreign revenue and a major contributor to the country’s economy through international exportation of the mineral; however, the industry is now facing headwinds.
In mid-January this year, Reuters reported that coal exports from the country’s Richards Bay Coal Terminal (RBCT) reached its lowest level since 1993 in 2022, at 50.3 million tonnes – a direct result of failures to get coal from mines to ports.
The poor performance of the national freight and logistics company Transnet has resulted in the latest 30-year low. There is a lack of sufficient volume for coal for exporting due to a collapsing rail system under the management of Transnet.
The Minerals Council reportedly sent a letter to Transnet’s chairman in December, calling for removing the company’s management.
Both Transnet and the Minerals Council have declined to comment on the matter. Multiple figureheads in the industry have supported the move by the minerals council.
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