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SAREC RESPONSE TO THE COAL TRANSPORTATION FORUM’S ACTION IN TSHWANE

Posted at March 2, 2017 | By : | Categories : News | 0 Comment

The South African Renewable Energy Council (SAREC) has issued a statement in response to the Coal Transportation Forum’s press notice, relating to the reasons behind their unfortunate industrial action in Tshwane this morning. SAREC believes that the statement contains a number of factual errors which need correcting. “We would like to firstly point out that the reduced coal consumption of up to 10 million tonnes by 2021 is actually part of Government’s policy and it is consistent with South Africa’s climate change commitment,” Brenda Martin, Chair of SAREC.

“Furthermore, Eskom has its own ambition to procure and own 9,6 GW of nuclear plant by 2030 as anticipated in the 2010 Integrated Resource Plan and which is consistent with the utility’s support for the “Carbon Budget Nuclear” scenario of this resource plan,” added Martin.

It is common knowledge that South Africa, along with the rest of the world, is transitioning from coal to other energy sources, be it renewable energy, gas or even nuclear. This is a challenge and the reality being faced by countries around the world. “The renewable energy sector globally has shown itself to be even more successful at job creation than the coal or nuclear industry and we believe that we will prove that in South Africa,” she said.

Finally, SAREC is concerned about who has been providing CTA with its information, particularly in the light that Mr. Koko has been constantly posting in social media parroting the same “facts” during the morning. We believe it is important that people enter into informed debates on the fact of the matter rather than feeding off misinformation.

SAREC is open to engagement with the leadership of CTA to discuss the matters further if there is any clarification required on the facts above.

In direct response to the CTF’s statement, SAREC’s outline includes:
• SAREC would like to refer the CTF to Table 11 of the 2017 Budget Review which shows that the contingent from IPPs will be R104 Bn rather than the R700 Bn indicated in their statement. At the same time Eskom’s contingent liability will have risen to R284 Bn.

We would like to suggest that CTF contact National Treasury for confirmation of these facts.

• If CTA would refer to the IRP 2016 update of the IRP, Komati, Hendrina, Arnot, Camden and Grootvlei power are due for decommissioning by 2030. Eskom has performed a life extension exercise for the rehabilitation of these. In fact, Eskom plans to decommission some 27,5 GW of coal-fired plant by 2040 which will result in a total of 12 thermal plants being closed. Eskom has performed a life extension exercise to confirm the feasibility of repowering the plant, which has been shown to be too expensive.

SAREC would like to propose that CTA contact both the Department of Energy and Eskom for confirmation of these facts.

• The construction of the Medupi and Kusile coal-fired plant which would replace a number of these old plants will result in a reduction in Eskom’s coal procurement by some 30 million tonnes per annum.

• The reduced coal consumption of up to 10 million tonnes by 2021 is part of Government’s policy and it is consistent with South Africa’s climate change commitment. Eskom’s own ambition to procure and own 9,6 GW of nuclear plant by 2030 as anticipated in the 2010 IRP and which is consistent with the utility’s support for the “Carbon Budget / Nuclear” scenario of the IRP.

SAREC would like to suggest that CTF engage actively with Mr. Matshele Koko, the interim CEO of Eskom to confirm Eskom’s position on nuclear and the consequences that it will have on the Limpopo and Mpumalanga coal industries.

SAREC would propose that CTA speak to both Eskom and the Energy Centre of the CSIR for independent verification of these facts.