Eskom’s big secret

National Treasury has failed to release a report by a German consultancy on Eskom’s coal-fired power stations, which energy experts have flagged as concerning, considering the Department of Mineral Resources and Energy’s (DMRE’s) plan to extend the life of the said power stations.
As reported by City Press, National Treasury is keeping a “politically sensitive” energy report by VGBE Energy under wraps despite three Promotion of Access to Information Act requests from the Centre for Environment Rights (CER).
The VGBE assessment was one of the many conditions for the R247 billion bailout that Finance Minister Enoch Godongwana announced last year.
Although Eskom said that 14 power stations had gone through the assessment process, National Treasury said that it would only release the report after cabinet had discussed it.
CER’s Leanne Govindsamy said that the delay is problematic, as the DMRE’s latest Integrated Resource Plan (IRP) proposes that Eskom extend the life of the nation’s coal fleet.
Although the IRP has several plans to produce energy, the “least cost” is heavily reliant on coal, while criticising renewable energy.
“Energy pathways based on renewable and clean energy technologies only deliver the desired outcome in so far as decarbonising the power system,” the energy department said.
“These pathways do not provide security of supply, while carrying the highest cost to implement.
Due to the abundance of coal reserves in the country, the plan states that investments in more efficient and clear coal technology are necessary.
It also leans into delaying the shutting down of multiple coal power stations, which the department said could ensure energy security for longer.
By delaying the shutdown at five key stations whose end of life is post-2025, the DMRE said that more than 8,000MW could saved by 2050 from the previous plan in the IRP 2019.
In addition, delaying the planned shutdown of Tutuka power station by 2030 could also save 3,500 MW.
The plan also states that nuclear power is a crucial form of clean energy and that the government should expand its atomic program with the incremental deployment of small modular reactors to match growing demand.
Gas-to-power technologies have also been touted as a complement to renewable energy projects, with gas imports in the short term followed by local exploration.
However, energy experts have questioned whether this is truly the “least cost” option for South Africa.
“The plan’s cost estimates aren’t credible. It does not even consider the most inexpensive combination of new, additional electricity – largely wind and photovoltaic solar, with some battery storage. Instead, the plan claims wrongly that gas-intensive scenarios are cheaper,” Hartmut Winkler, Professor of Physics, University of Johannesburg, said.
“The new draft plan could commit South Africa to unnecessarily expensive solutions. This will damage economic prospects and drive energy costs to unaffordable levels.”
The full draft IRP can be found below: