Page 9 - AfrElec Week 46

AfrElec COAL-FIRED GENERATION AfrElec

Asian developers’ exit from Thabametsi

confirmed by SA government

ASIA THE Japan and South Korea-led Thabametsi which was planned to come online in 2021.
Project Company has officially informed the The Thabametsi project was already in doubt
South African government that it has withdrawn after South African financiers Nedbank, Fir-
from the 630-MW Thabametsi coal-fired power stRand and Standard Bank all withdrew from it
project. in January 2019.
The Thabametsi Project Company, led by The original proposal for Thabametsi was
Japan’s Marubeni and South Korea’s KEPCO, for a coal plant of between 600 MW and 1,200
won the right to build the power plant during MW near Lephalale, in the coal-rich Waterberg
South Africa’s 2014 Coal Baseload Independ- region of the northern Limpopo Province. The
ent Power Producer (IPP) Procurement Pro- plant was to be supplied with coal from Exxaro’s
gramme, which aims to construct a total of 2,500 EXXJ.J Thabametsi mine.
MW of coal power. However, the local and international backers
“The IPP Office can confirm that it has have reduced their exposure to coal as more and
received a request from the Thabametsi Project more investors are equating climate risk with
Company to withdraw from further participa- investment risk. The falling cost of renewables
tion in the Coal Baseload IPP Procurement Pro- means that in many cases it is now cheaper to
gramme, and the department is following due invest in renewables than new coal power, the
process in response to the request,” the Depart- IEA has said this year.
ment of Energy and Mineral Resources said, South Africa has recently slowly come round
Reuters reported. to the falling cost of renewables, with Eskom
South African environmental groups had itself having admitted that it is looking to develop
criticised the 630-MW, $2.1bn Thabametsi plant, new renewables projects as they are now cheaper
saying it would have been among the most car- than coal. The plant would also have contributed
bon-intensive coal power stations in the world to pollution, especially as the location is close to
and a drain on meagre water resources in the arid the 3,990-MW Matimba plant and the 4,765-
Limpopo province. MW Medupi power plant, which is still under
As well as the two Asian companies, South construction.
Africa’s biggest state pension fund manager, the South Africa is already Africa’s biggest CO2
Public Investment Corp. (PIC), and the Indus- emitter and is falling behind on its pledges to the
trial Development Corp. (IDC) have confirmed cut emissions.™
that they will no longer support the project,

ESKOM

Eskom to cut power to non-payers

JAPAN ESKOM intends to cut off power supplies to one- not been paying.
third of South Africa’s municipalities for not pay- Eskom disconnected the electricity in the
ing their bills. Walter Sisulu municipality in the Eastern
“Eskom shared a list of municipalities that Cape which, by the end of July, owed Eskom
it intends to disconnect for breach of Eskom ZAR1.3bn ($84.4mn).
supply contract. NERSA is not able to disclose Outstanding debt from municipalities
the names of the municipalities but there are has been a long-standing issue for Eskom. In
about 92 municipalities involved,” said Charles December 2019 Eskom told the Standing Com-
Hlebela, spokesperson for the National Energy mittee on Public Accounts (SCOPA) that it was
Regulator of South Africa (NERSA), the Daily owed ZAR26bn.
Maverick reported. Earlier this year, Pravin Gordhan, Minister
Hlebela had earlier said that local councils of Public Enterprises, told Parliament that “the
had breached their contracts by paying bills and total debt owed by municipalities as at 31 July,
exceeding the maximum electricity demand 2020 is ZAR46.1bn, of which ZAR31bn is over-
they agreed on. due debt.”
This would not be the first time the power In a statement released in September, Eskom
utility has cut off electricity for those who have said that “the total outstanding municipal debt

Week 46 19•November•2020 www. NEWSBASE .com P9