SA in talks with climate backers over delaying coal plant closures

South Africa is in talks with groups helping to fund its switch to a greener economy about delaying the closure of some coal plants as it battles to boost power supplies, and is optimistic of an agreement, the head of the state electricity utility said.

Africa's most industrialised country became the poster child for the global energy transition when developed economies including Britain, the EU and the US, together pledged $8.5bn (R153bn) at UN climate talks in 2021 to help South Africa cut emissions and move away from coal.

However, keeping the lights on in a struggling economy while shutting down some old coal-fired plants supplying most of the country's electricity needs has proved to be a tough task, forcing Eskom to delay commitments to shut at least three power stations before 2030.

“There are some concerns with regards to how our strategy will impact some of the commitments government has made, and also how it will affect some of the funding earmarked for these initiatives,” Dan Marokane, the new Eskom CEO, told an energy conference in Cape Town.

“We have spoken to them [partners], we’ve engaged with them and explained our rationale and the need for tactical cost adjustment and they’ve all understood this,” he said ahead of scheduled talks with funders in June and July.

Eskom has managed to suspend load-shedding for almost two months ahead of the  elections on May 29 that could see the ruling ANC lose its majority for the first time since it came to power in 1994.

Improving the low energy availability factor, which is the amount of power available at any given time, at old coal-fired power stations is a key aspect of the utility's turnaround strategy.

Eskom told Reuters last week the  power supply crisis made it “nearly impossible” from a technical and political economy perspective to decommission its Camden, Grootvlei and Hendrina coal stations over the next few years as originally intended.

“Eskom intends to delay the shut down of the plants until March 2030, and to manage its carbon reduction targets through fleet-wide initiatives,” Eskom said.

On Tuesday, Eskom's head of generation Bheki Nxumalo said four out of 10 units at the Hendrina plant had been shut and the utility did not plan to bring the units back online.

“There is no plan to bring those  three or four units back because as we continue to improve the availability, the pressure becomes less,” he said.

Reuters