Home PodcastInayet Wadee Navigating SA’s Coal Debate: Energy, economics, and external influences

Navigating SA’s Coal Debate: Energy, economics, and external influences

by Luqmaan Rawat
South Africa should not succumb to international pressure to move away from coal during this current crisis Photo Pexels

South Africa – The coal debate in South Africa has gained significant attention, as President Cyril Ramaphosa’s pledge to meet the nation’s Net Zero carbon emission target clashes with the push to keep coal-fired power plants operational. While there have been plans to decommission coal-fired power stations, recent developments suggest a slowdown in this process.

The country is currently facing a dire energy supply situation, with insufficient electricity to meet the demands of its citizens. In May, President Ramaphosa confirmed that the South African government would be altering its plans for phasing out coal-fired power stations. Despite this adjustment, he remains committed to achieving the nation’s net-zero carbon emission goal.

Given this critical context, both Ramaphosa and his deputy, Paul Mashatile, have acknowledged the imprudence of decommissioning the entire coal fleet at this stage. Instead, the focus is on extending the lifespan of existing power plants to address the energy crisis, said crown prince Adil Nchabeleng, President of Transform RSA and Energy Expert.

“The Deputy President and the President agreed that it will not be wise at this stage to actually decommission the entire coal fleet as well as the coal opportunity that we have in South Africa. The focus will be to extend the lifespan of the power plants in order to resolve our energy crisis in South Africa. It’s not been an easy process. There have been a lot of voices that came into the discussion to say this is unacceptable. We are in a crisis and South Africa is busy proposing, internationally, moving away from coal.”

 

International pressure and hypocrisy to move away from coal

South Africa has been facing pressure from international entities to move away from coal, despite its abundant coal reserves. Nchabeleng argued that this pressure is highly hypocritical, as many countries around the world have been slow to decommission their own coal-fired power plants.

“Everybody around the world has been moving away from decommissioning their plants except for South Africa … It doesn’t make sense at the level of our crisis to be really pestering over how we can actually destroy our own energy and energy sovereignty on the basis of backing something that nobody currently believes in. The war in Ukraine showed the hypocrisy of Europe …The same countries that were speaking big and bold about how we should all migrate away from coal use, use natural gas or use solar, and wind are today the same countries that have now re-fired their coal power stations.”

Countries like China and India, which have witnessed substantial economic growth, continue to heavily rely on coal as an energy source. China, for instance, operates millions of megawatts of electricity generated from coal and continues to build new coal power stations. This discrepancy in expectations between developed nations and South Africa has raised questions about the motivations behind the push to abandon coal.

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Misguided leadership and external agendas

Nchabeleng argued that South Africa’s leadership has been misled by external interests, leading to a lack of understanding of the complexities surrounding the coal debate. He contended that certain international entities have funded South African decision-makers with the intention of steering the country away from coal.

“The pressure placed on South Africa is on the basis that the European countries want South Africa to lose its national sovereignty of coal based almost free energy … They want to destroy that base of South Africa’s ability to create free cheap electricity to develop its people. They want us to get into the World Bank arrangement of debt in terms of borrowing from the International Monetary Fund so that we can then pay interest on the future IPPs that we are buying right now. All of the current IPPs that South Africa are purchasing are all based on interest contracts.”

These Independent Power Producers (IPPs), which are not favourable to South Africa, could potentially compromise the country’s sovereignty and allow indebted countries to assert control over its public assets and infrastructure.

“These are erroneous contracts. They are not nice contracts. It states very clearly that if you default on those contracts you’ll lose the ability to even be a sovereign country. Some countries who you’re indebted to can come in and take over your state and sovereignty. In retrospect literally liquidate your public assets, your boards, your key infrastructure that actually gives you sovereignty. People don’t understand the depth of this problem. They think it’s just about electricity.”

The coal debate in South Africa is complex, balancing the need for energy security and economic development with environmental concerns and international pressures. While the global push to transition away from coal is valid, it is essential to consider the country’s unique context and the potential economic benefits of utilising its abundant coal reserves. Instead of rushing the decommissioning process, a more balanced approach should be adopted, ensuring that viable alternatives are in place to address the energy crisis and maintain the country’s economic stability. As South Africa navigates its energy future, it is crucial to prioritise the interests of its people and the long-term sustainability of the nation’s energy system.

 

In a captivating conversation with Inayet Wadee, crown prince Adil Nchabeleng delved into the intricacies surrounding the pressing issue of decommissioning power plants, shedding light on the potential consequences of hasty actions and the often-overlooked economic benefits that coal presents. Listen to that discussion here:

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