Page 4 - AfrElec Week 05 2023

AfrElec COMMENTARY AfrElec

South Africa’s difficult

shift from coal

South Africa is coming under pressure to phase out coal

but faces a challenging path ahead

SOUTH AFRICA COAL is the lifeblood of South Africa’s economy. dependence on coal. Eskom operates a fleet of
It accounts for more than three-quarters of the coal-fired power plants that provide the vast
WHAT: country’s electricity generation and is a major majority of the country’s electricity. In 2021, the
South Africa is under export commodity. As of 2021, the coal mining utility announced the completion of a new mega
increasing pressure industry employed close to 93,000 workers, with coal-fired power station, Medupi. An additional
from the international an additional 200,000 people employed indi- station, Kusile, is still under construction, with
community to phase out rectly in the coal value chain. full operation expected to begin in 2024. Once
coal. Given coal’s centrality to the economy, it’s no fully operational, the two stations will be among
wonder that the South African government has the largest coal-fired power plants in the world.
WHY: been loath to reduce domestic dependence on it. The Medupi and Kusile power stations are
The country is a But as its energy sector comes under increasing integral components in Eskom’s plan to expand
significant emitter pressure from the international community, and capacity and meet growing energy demand
of GHGs and is also as renewable infrastructure becomes cheaper across South Africa. But they also underscore
struggling with power and more efficient, the question is how much the country’s dilemma in trying to balance its
shortages longer can the status quo be maintained? need for affordable and reliable energy with
The answer, it turns out, may be for a good efforts to decarbonize its economy. South Africa
WHAT NEXT: deal longer than many observers think. While is a signatory to the Paris Agreement, a global
Progress has been slow the South African government has made some pact to combat climate change, and has commit-
but momentum may progress in recent years in expanding the coun- ted to reducing its greenhouse gas emissions by
pick up try’s renewable energy capacity, coal is likely to 31% below ‘business-as-usual’ levels by 2030.
remain the dominant source of power for the But coal — the most carbon-intensive of all fos-
foreseeable future. sil fuels — still accounts for more than 80% of
South Africa’s primary energy supply.
Eskom troubles
Eskom, South Africa’s state-owned utility com- Need of investment
pany, is a central player in the country’s ongoing Today, South Africa is the world’s 13th-largest

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