South Africa Considers Extending Life of Coal-Fired Power Stations Beyond Climate Commitments

Key Highlights :

1. The government is committed to the Just Energy Transition investment plan, which will unfold at a pace the country can afford.

2. Recent statements by Minister of Electricity Kgosientsho Ramokgopa have raised the possibility of keeping SA's coal-fired power stations going for longer than the climate commitments implied by the JET partnership arrangement and the JET investment plan.

3. The JET investment plan and the $8.5 billion of concessional funding attached to it, requires that SA retire its coal fleet at a pace that will achieve its nationally determined contributions (NDCs).

4. Ramaphosa said: "The nationally determined contributions (NDCs) are not in question. We are unswerving about that … We are not making a new plan. There is a plan in place," Ramokgopa said in reference to the national energy crisis plan and the Integrated Resource Plan.

5. While acknowledging the success of his investment initiatives so far – with pledges of more than R1.1 trillion in the bag – Ramaphosa focused much of his speech on government initiatives to address the challenges.

     Recent statements by Minister of Electricity Kgosientsho Ramokgopa have raised the possibility of keeping SA's coal-fired power stations going for longer than the climate commitments implied by the JET partnership arrangement and the JET investment plan. Ramokgopa made these statements at a meeting of the National Energy Regulator of South Africa (NERSA) on Wednesday. He said that the government is still committed to the JET partnership agreement and the JET investment plan, but that the power stations should be kept running for longer than the initial 25 years.

     This is a major change of policy, as the government has previously stated that it would shut down all of the coal-fired power stations by 2025. This would be a major blow to the coal industry, as SA is the world's fourth-largest coal producer. Ramokgopa said that the government is still committed to the climate targets set out in the JET partnership agreement, but that the power stations should be kept running for longer than the initial 25 years.

     This is a major change of policy, as the government has previously stated that it would shut down all of the coal-fired power stations by 2025. This would be a major blow to the coal industry, as SA is the world's fourth-largest coal producer. Ramokgopa said that the government is still committed to the climate targets set out in the JET partnership agreement, but that the power stations should be kept running for longer than the initial 25 years.

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