South Africa is negotiating with international climate backers to delay the closure of several coal-fired power plants as the nation grapples with a persistent energy crisis. Eskom, the state electricity utility, remains hopeful that an agreement will be reached, according to its chief executive.
The country, heralded as a leader in the global energy transition, received a pledge of $8.5 billion from developed nations including the UK, EU, and the US at the 2021 U.N. climate talks to assist in cutting emissions and moving away from coal. However, the challenge of maintaining a stable power supply in a struggling economy while shutting down coal plants has forced Eskom to reconsider its timelines.
“There are concerns regarding the impact of our strategy on government commitments and funding earmarked for these initiatives,” said Dan Marokane, Eskom’s new CEO, at an energy conference in Cape Town. “We have engaged with our partners, explained our rationale for tactical cost adjustments, and they have understood our position.”
Eskom plans to discuss these adjustments in more detail with funders during meetings in June and July.
The utility has successfully suspended rolling power outages—an issue plaguing South Africa for years—for nearly two months ahead of a critical election on May 29. This election could see the ruling African National Congress lose its majority for the first time since it came to power in 1994. Enhancing the energy availability factor at aging coal-fired power stations is a crucial part of Eskom’s turnaround strategy.
Last week, Eskom informed Reuters that decommissioning the Camden, Grootvlei, and Hendrina (CGH) coal stations as originally planned was “nearly impossible” due to the ongoing power supply crisis and political-economic pressures.
“Eskom intends to delay the shutdown of the CGH plants until March 2030 and manage its carbon reduction targets through fleet-wide initiatives,” the utility stated.
On Tuesday, Bheki Nxumalo, Eskom’s head of generation, reported that four out of ten units at the Hendrina plant had already been shut down, with no plans to reactivate these units. “There is no plan to bring those other three or four units back because as we continue to improve availability, the pressure becomes less,” Nxumalo said.
The outcome of these negotiations will significantly influence South Africa’s energy landscape and its commitments to the global climate agenda.
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