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

EUR -
AED 4.272332
AFN 80.42513
ALL 97.618365
AMD 447.08411
ANG 2.081722
AOA 1066.625747
ARS 1482.668999
AUD 1.786354
AWG 2.093704
AZN 1.978062
BAM 1.956168
BBD 2.350642
BDT 141.33659
BGN 1.957659
BHD 0.438683
BIF 3469.652746
BMD 1.163169
BND 1.494381
BOB 8.044513
BRL 6.49316
BSD 1.164219
BTN 100.225856
BWP 15.630941
BYN 3.810017
BYR 22798.109012
BZD 2.33854
CAD 1.596339
CDF 3356.905613
CHF 0.931855
CLF 0.029216
CLP 1121.166966
CNY 8.349168
CNH 8.350808
COP 4677.985862
CRC 587.510528
CUC 1.163169
CUP 30.823974
CVE 110.285748
CZK 24.639171
DJF 207.108963
DKK 7.464619
DOP 70.313228
DZD 151.632527
EGP 57.473915
ERN 17.447532
ETB 161.762232
FJD 2.62283
FKP 0.867122
GBP 0.86695
GEL 3.152504
GGP 0.867122
GHS 12.137283
GIP 0.867122
GMD 83.169137
GNF 10101.900472
GTQ 8.938682
GYD 243.575824
HKD 9.128374
HNL 30.469732
HRK 7.534655
HTG 152.858757
HUF 399.327066
IDR 18992.220609
ILS 3.905799
IMP 0.867122
INR 100.205657
IQD 1525.086915
IRR 48983.951758
ISK 142.394978
JEP 0.867122
JMD 186.175025
JOD 0.824691
JPY 172.533407
KES 150.420989
KGS 101.719181
KHR 4665.877792
KMF 492.368475
KPW 1046.851956
KRW 1617.560714
KWD 0.355511
KYD 0.970183
KZT 620.63676
LAK 25106.723332
LBP 104314.024614
LKR 351.24608
LRD 233.423914
LSL 20.612978
LTL 3.434535
LVL 0.703589
LYD 6.332191
MAD 10.527381
MDL 19.803726
MGA 5180.974698
MKD 61.571583
MMK 2442.318183
MNT 4170.955634
MOP 9.412171
MRU 46.311713
MUR 53.145273
MVR 17.947427
MWK 2018.779793
MXN 21.773532
MYR 4.934746
MZN 74.396717
NAD 20.612978
NGN 1779.101521
NIO 42.848061
NOK 11.836209
NPR 160.361169
NZD 1.954985
OMR 0.447344
PAB 1.164219
PEN 4.14408
PGK 4.820907
PHP 66.320372
PKR 331.569578
PLN 4.248337
PYG 9010.695183
QAR 4.232996
RON 5.070955
RSD 117.172044
RUB 91.430301
RWF 1682.316494
SAR 4.365055
SBD 9.65296
SCR 17.095616
SDG 698.482539
SEK 11.232448
SGD 1.494154
SHP 0.914068
SLE 26.639281
SLL 24391.073311
SOS 665.325168
SRD 43.279196
STD 24075.246293
STN 24.50461
SVC 10.186916
SYP 15123.352623
SZL 20.608877
THB 37.674798
TJS 11.205608
TMT 4.082723
TND 3.422544
TOP 2.724256
TRY 47.001673
TTD 7.903487
TWD 34.189007
TZS 3032.770825
UAH 48.620447
UGX 4171.784839
USD 1.163169
UYU 46.918827
UZS 14736.772431
VES 136.050029
VND 30428.496518
VUV 139.335512
WST 3.078793
XAF 656.080429
XAG 0.030437
XAU 0.000347
XCD 3.143522
XCG 2.098195
XDR 0.815954
XOF 656.080429
XPF 119.331742
YER 280.381842
ZAR 20.60507
ZMK 10469.912151
ZMW 26.806043
ZWL 374.539888
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

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)