Berliner Boersenzeitung - S. Africa offers a lesson on how not to shut down a coal plant

EUR -
AED 4.31146
AFN 77.552815
ALL 96.490006
AMD 447.387397
ANG 2.1015
AOA 1076.545647
ARS 1686.460724
AUD 1.760602
AWG 2.116111
AZN 1.99315
BAM 1.95662
BBD 2.360179
BDT 143.199982
BGN 1.956637
BHD 0.442544
BIF 3463.35069
BMD 1.173987
BND 1.515741
BOB 8.097392
BRL 6.345873
BSD 1.171786
BTN 105.771304
BWP 16.540858
BYN 3.43814
BYR 23010.14023
BZD 2.356777
CAD 1.616715
CDF 2623.86079
CHF 0.932964
CLF 0.02736
CLP 1073.317806
CNY 8.286057
CNH 8.278702
COP 4464.965093
CRC 583.546915
CUC 1.173987
CUP 31.110649
CVE 110.311206
CZK 24.201973
DJF 208.666515
DKK 7.469115
DOP 75.041752
DZD 152.174529
EGP 55.805107
ERN 17.609801
ETB 182.47371
FJD 2.66706
FKP 0.874416
GBP 0.876262
GEL 3.169235
GGP 0.874416
GHS 13.452635
GIP 0.874416
GMD 85.700954
GNF 10192.269224
GTQ 8.974759
GYD 245.122674
HKD 9.137837
HNL 30.851054
HRK 7.535468
HTG 153.462974
HUF 382.616951
IDR 19524.690979
ILS 3.759816
IMP 0.874416
INR 106.058551
IQD 1535.042982
IRR 49436.581934
ISK 148.204435
JEP 0.874416
JMD 187.737838
JOD 0.832368
JPY 182.800889
KES 151.11573
KGS 102.665441
KHR 4690.944912
KMF 493.074524
KPW 1056.583646
KRW 1729.94575
KWD 0.360027
KYD 0.976509
KZT 610.165579
LAK 25415.645822
LBP 104936.154484
LKR 362.38179
LRD 206.826633
LSL 19.845112
LTL 3.466477
LVL 0.710133
LYD 6.364639
MAD 10.779015
MDL 19.956359
MGA 5197.154791
MKD 61.561122
MMK 2465.687013
MNT 4164.573128
MOP 9.392234
MRU 46.451655
MUR 53.909635
MVR 18.090815
MWK 2031.942463
MXN 21.162074
MYR 4.804542
MZN 75.011046
NAD 19.845112
NGN 1701.552826
NIO 43.118061
NOK 11.81033
NPR 169.234608
NZD 2.018902
OMR 0.451397
PAB 1.171791
PEN 3.949454
PGK 4.972061
PHP 69.293982
PKR 329.571844
PLN 4.22215
PYG 8008.320328
QAR 4.270789
RON 5.091231
RSD 117.392861
RUB 93.000534
RWF 1705.607162
SAR 4.405546
SBD 9.662606
SCR 16.594891
SDG 706.148212
SEK 10.862781
SGD 1.515406
SHP 0.880794
SLE 28.293557
SLL 24617.912895
SOS 668.477157
SRD 45.301212
STD 24299.155382
STN 24.510162
SVC 10.253295
SYP 12982.392397
SZL 19.839226
THB 37.168443
TJS 10.804126
TMT 4.108954
TND 3.435839
TOP 2.826678
TRY 50.121365
TTD 7.952331
TWD 36.617932
TZS 2887.993286
UAH 49.462107
UGX 4166.74532
USD 1.173987
UYU 46.139326
UZS 14085.900144
VES 310.795223
VND 30885.243326
VUV 142.623146
WST 3.268316
XAF 656.229079
XAG 0.018394
XAU 0.000274
XCD 3.172758
XCG 2.111885
XDR 0.816138
XOF 656.229079
XPF 119.331742
YER 279.84908
ZAR 19.778131
ZMK 10567.290561
ZMW 26.864138
ZWL 378.023253
  • SCS

    0.0200

    16.14

    +0.12%

  • CMSC

    0.1300

    23.43

    +0.55%

  • RIO

    0.5000

    76.74

    +0.65%

  • BCC

    -0.7500

    76.26

    -0.98%

  • NGG

    0.0500

    74.69

    +0.07%

  • GSK

    0.4700

    48.88

    +0.96%

  • BCE

    0.2100

    23.4

    +0.9%

  • AZN

    -1.2200

    90.29

    -1.35%

  • JRI

    0.0000

    13.72

    0%

  • BTI

    -0.3900

    58.37

    -0.67%

  • CMSD

    0.1200

    23.4

    +0.51%

  • RBGPF

    0.0000

    81.17

    0%

  • RYCEF

    -0.1000

    14.64

    -0.68%

  • RELX

    0.2000

    40.28

    +0.5%

  • VOD

    -0.0200

    12.54

    -0.16%

  • BP

    -0.3500

    35.53

    -0.99%

S. Africa offers a lesson on how not to shut down a coal plant
S. Africa offers a lesson on how not to shut down a coal plant / Photo: PAUL BOTES - AFP

S. Africa offers a lesson on how not to shut down a coal plant

The cold corridors of South Africa's once-mighty Komati coal-fired power plant have been quiet since its shutdown in 2022 in what was trumpeted as a pioneering project in the world's transition to green energy.

Text size:

Two years later, plans to repurpose the country's oldest coal power plant have amounted to little in a process that offers caution and lessons for countries intending to reduce their reliance on fossil fuels and switch to renewables.

Jobs have been lost and construction for wind and solar energy generation has yet to start, with only a few small green projects underway.

"We cannot construct anything. We cannot remove anything from the site," acting general manager Theven Pillay told AFP at the 63-year-old plant embedded in the coal belt in Mpumalanga province, where the air hangs thick with smog.

Poor planning and delays in paperwork to authorise the full decommissioning of the plant have been the main culprits for the standstill, he said. "We should have done things earlier. So we would consider it is not a success."

Before it turned off the switches in October 2022, the plant fed 121 megawatts into South Africa's chronically undersupplied and erratic electricity grid.

The transition plan -- which won $497 million in funding from the World Bank -- envisions the generation of 150 megawatts via solar and 70 megawatts from wind, with capacity for 150 megawatts of battery storage.

Workers are to be reskilled and the plant's infrastructure, including its massive cooling towers, repurposed.

But much of this is still a long way off. "They effectively just shut down the coal plant and left the people to deal with the outcomes," said deputy energy and electricity minister Samantha Graham.

- Disgruntled -

Coal provides 80 percent of South Africa's power and the country is among the world's top 12 largest greenhouse gas emitters. Coal is also a bedrock of its economy, employing around 90,000 people.

South Africa was the first country in the world to form a Just Energy Transition Partnership (JETP) with international funders to move off dirty power generation, already receiving $13.6 billion in total in grants and loans, Neil Cole of the JETP presidential committee told AFP.

Komati is the first coal plant scheduled for decommissioning, with five of the remaining 14 ones meant to follow by 2030.

It had directly employed 393 people, the state energy firm Eskom that owns the plant told AFP. Only 162 remain on site as others volunteered for transfer or accepted payouts.

The plant had been the main provider of employment in the small town, where the quiet streets are pitted with chunks of coal. Today, several houses are vacant as workers from other provinces headed home after losing their jobs.

"Our jobs ending traumatised us a lot as a community," said Sizwe Shandu, 35, who had been contracted as a boilermaker at the plant since 2008.

The shutdown had been unexpected and left his family scrambling to make ends meet, he said. With South Africa's unemployment rate topping 33 percent, Shandu now relies on government social grants to buy food and electricity.

Pillay admitted that many people in the town of Komati had a "disgruntled view" of the transition. One of the mistakes was that coal jobs were closed before new jobs were created, he said. People from the town did not always have the skills required for the emerging jobs.

Eskom has said it plans to eventually create 363 permanent jobs and 2,733 temporary jobs at Komati.

One of the green projects underway combines raising fish alongside vegetable patches supported by solar panels.

Seven people, from a planned 21, have been trained to work on this aquaponics scheme, including Bheki Nkabinde, 37.

"Eskom has helped me big time in terms of getting this opportunity because now I've got an income, I can be able to support my family," he told AFP, as he walked among his spinach, tomatoes, parsley and spring onions.

The facility is also turning invasive plants into pellets that are an alternative fuel to coal and assembling mobile micro power grids fixed to containers. A coal milling workshop has been turned into a welding training room.

- Mistakes and lessons -

The missteps at Komati are lessons for other coal-fired power plants marked for shutdown, Pillay said. For example, some now plan to start up green energy projects parallel to the phasing out of fumes.

But the country is "not going to be pushed into making a decision around how quickly or how slowly we do the Just Energy Transition based on international expectations", said Graham.

South Africa has seven percent renewable energy in its mix, up from one percent a decade ago, she said. And it will continue mining and exporting coal, with Eskom estimating that there are almost 200 years of supply still in the ground.

The goal is to have a "good energy mix that's sustainable and stable", Graham said.

Since South Africa's JETP was announced, Indonesia, Vietnam and Senegal have struck similar deals, but there has been little progress towards actually closing coal plants under the mechanism.

Among the criticisms is that it offers largely market-rate lending terms, raising the threat of debt repayment problems for recipients.

(H.Schneide--BBZ)