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South Africa Electricity Minister Slams Climate Finance Pact

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South Africa Electricity Minister Slams Climate Finance Pact

Posted on : 27-07-2023 | Author : Antony Sguazzin

Photo by Bloomberg

South Africa's Electricity Minister, Kgosientsho Ramokgopa, has criticized the country's $8.5 billion climate finance pact with wealthy nations, which aims to close some coal-fired power plants and repurpose them for renewable energy production. He expressed concern over the closure of Eskom Holdings SOC Ltd.'s Komati Power Station, the first plant to be shut down, and referred to it as an "injustice" happening in the name of the energy transition.

Ramokgopa's remarks align with previous comments made by Energy Minister Gwede Mantashe and labor unions, adding to the tensions surrounding the Just Energy Transition Program (JETP), which is currently behind schedule. The implementation plan required for the funds to flow from countries like France, Germany, the US, UK, and the European Union is yet to be produced by South Africa.

He emphasized that if he had the choice, he would restart the units at Komati, as the power station was performing well when closed. He criticized the decision to remove 1,000 megawatts of energy by closing Komati and only getting 217 megawatts of alternative energy in return due to decarbonization efforts backed by funding.

Ramokgopa also echoed Mantashe's claim that South Africa is being used as a "guinea pig" for the green transition, as other countries like Vietnam, Indonesia, and Senegal pursue similar JETP agreements. He advocated for the extension of the lifespans of some coal-fired plants. Money from the World Bank was used to fund the closure of Komati.

At present, South Africa is facing severe power cuts, known as load shedding, due to breakdowns in its aging coal-fired plants that supply more than 80% of the country's energy. However, Ramokgopa's description of Komati contradicts its condition before closure, as only one of its nine generating units was operational in early 2021, producing just over 100 megawatts, and the surrounding town appeared neglected with little economic activity.