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South Africa Considers Delaying Decommissioning of Coal Power Stations Amid Supply Deficit, but Dismisses Extension Plans

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South Africa Considers Delaying Decommissioning of Coal Power Stations Amid Supply Deficit, but Dismisses Extension Plans

Posted on : 10-06-2023 | Author : Terence Creamer

The Presidency has clarified the criteria for considering a delay in the decommissioning of certain coal-fired power stations in South Africa, emphasizing that it does not involve extending the life of these plants. Speaking at the Presidential Planning Commission (PCC), Rudi Dicks, the head of the project management office, addressed concerns raised by the International Partners Group, which has committed $8.5 billion in concessional funding for South Africa's Just Energy Transition Investment Plan (JET-IP). Dicks stressed that the conversation revolves around potentially postponing decommissioning in light of the energy crisis but not extending the lifespan of power plants. The government remains committed to decarbonization targets and the goal of achieving net-zero emissions, while ensuring energy security and reducing load shedding.

The decision to revise the decommissioning schedule will be based on a cost comparison between refurbishing older coal-fired power stations and investing in replacement capacity, including renewables, batteries, and gas. To inform this revision, three assessments will be conducted: a technical assessment by international experts, a modelling exercise by the National Energy Crisis Committee, and another modelling exercise by the JET-IP Project Management Unit or the PCC to evaluate the impact on decarbonization. These assessments are expected to be completed by July, and no decommissioning will occur until they are finalized. Stations such as Camden, Grootvlei, and Kriel, which are performing better than some newer plants in the Eskom fleet, could be affected by any potential revision.

The JET-IP implementation plan framework will be published in July, followed by the formation of focus groups to address various aspects such as electricity infrastructure, the just transition in the electricity sector and in Mpumalanga, new energy vehicles, green hydrogen, skills development, and municipalities. Mpumalanga Premier Refilwe Mtshweni-Tsipane emphasized the need for strategies to support coal-dependent communities and ensure growth in sectors like agriculture, tourism, manufacturing, and renewables. She urged for an informed and consultative approach that includes the participation of communities and stakeholders.