Coal will continue to be a major part of the energy mix from 2030 to 2050, presidential officials told Parliament's portfolio committee on electricity and energy on Wednesday. (Guillem Sartorio/AFP)
South Africa's R1.48 trillion Just Energy Transition (JET) is making progress as plans to upskill workers for renewable energy generation and support small and medium-sized enterprises to develop green projects gain momentum. I'm here.
However, presidential officials told Parliament's portfolio committee on electricity and energy on Wednesday that coal will remain a major part of the energy mix between 2030 and 2050.
The JET Investment Plan for Africa 2023-2027 sets out the scale and need for early-stage investments needed to transition to low-carbon and climate-resilient economies, in line with the latest country-determined contributions submitted to the United Nations Framework. determines gender. Joan Yawich, head of jet project management at the President's Office, said a climate change treaty will be held in 2021.
In terms of this plan, to decarbonise the economy within target range by 2030, almost R1.5 trillion will be needed from 2023 to 2027 from multiple sources such as electricity, new energy vehicles and green hydrogen. Initial capital is required.
This funding is needed for skills development and local government, and sources include developed countries, private sector investors, development finance institutions, governments, philanthropy and multilateral development banks.
JET's funding requirements include R711.4 billion for the electricity sector, R128.1 billion for the new energy vehicle sector, R319 billion for green hydrogen, R2.7 billion for skills development and R319.1 billion for local government.
Mr Jawich said the R2.7bn set aside for skills development was deemed insufficient in public consultation and work was underway to increase the allocation.
He said South Africa has so far received 13.897 billion yen in grants and loan commitments to JET from sovereign bilateral partners such as Spain, Germany and France, as well as the European Union/European Investment Bank and the African Development Organization. It said it had raised US$235.16 billion (R235.16 billion). banks, climate investment funds, and the World Bank. A further R1 trillion has to come from the private and public sectors.
By December 2023, the private sector had invested R354.2 billion in energy infrastructure. Mr Jawich said the majority of the R600 billion in debt and equity financing would go towards independent power producer projects and supporting the country's electricity transmission system.
“We expect a significant influx of funds from the private sector going forward, and we can expect more governments, more fiscal budgets to be allocated to a just energy transition, especially improving the public transport sector. “We are looking at ways in which we can mobilize large-scale funding for municipal distribution infrastructure to support the rollout of the electric vehicle sector, and also in relation to green hydrogen,” she said.
“Significant investment by both the private and public sectors is still required.”
She said about $630 million of the $835 million in promised grants has already been “programmed.”
“This does not mean that all activities have been carried out, but the process is ongoing.”
Yawich said the force will establish a pilot debt financing platform in Mpumalanga on October 25 to match trade unions, small and medium-sized enterprises and micro-enterprises with international funding partners to launch green energy projects. He said the project has enabled them to obtain technical support to improve their skills and funding for project preparation. Workers entering the green economy.
“This funding will also be used for research, innovation and interim community support, allowing us to build institutions that enable communities to do the work they want to do.”We support state agencies, local governments, especially unions and We are looking at capacity building for community-based organizations,” she said.
“We want to enable municipalities to implement the JET plan. We want to support them in adjusting their operating models to the changing energy market. We look forward to working with them on how to support equitable access to energy for the poor and support energy efficiency in their investments.
“It focuses on distribution infrastructure capacity, capacity, planning and investment, and how municipal systems can support poor people's access to renewable energy.”
She said the force was working with the Ministry of Higher Education to set up a JET skills desk.
“We are establishing three skill development zones that will work with TVET. [technical vocational education and training] There are universities and providers in three regions with important value chains: one in Mpumalanga related to the power sector, one in the Eastern Cape related to the new energy vehicle sector, and one in the Northern Cape related to the green hydrogen economy. We have one in the state,” Yawitch said.
“The aim of all of that is to bring everyone together and build their capabilities, on the one hand, to ensure the quality of what is offered, and secondly, to ensure that all education service providers in these areas are working in the same direction. We provide the right skills, in the right industry, at the right time. ”
Commenting on the presentation, Economic Freedom Fighters MP Najee Poulsen said: “It always looks very nice on paper, but the devil is in the details.”
He wonders how many workers in the coal industry will be affected by the closure of coal-fired power plants and whether developed donor countries, which are helping drive jets, will buy South Africa's coal reserves that could last up to 500 years. I asked him if he would continue to do so.
African Christian Democratic Party MP Wayne Thring said the international climate change bill would benefit countries in the Global North that continue to burn coal.
“There are 54 countries in Africa that contribute less than 4% of carbon emissions, so how much does South Africa contribute to carbon emissions?” It must be a percent of the carbon footprint,” he said.
“We can't impose onerous climate change legislation on our economy when previous economies used coal, industrialized the country, and are where they are today thanks to the industrial revolution.”
He also questioned statements about South Africa's 15 coal-fired power plants compared to other countries.
“If you look at China, they have over 1,000 coal-fired power plants and about 100 are currently under construction.The United States has over 200 coal-fired power plants, and Germany is considering restarting them. “We're doing it,” Thring said.
“What is our position? There is silence around other great powers, such as China and European countries, who are currently moving back to gas and coal. And the excuse is, 'Well, we are.'
Please go to war.” [between] Russia and Ukraine. The war is not in Europe.
“We are at war. We are at war on unemployment. There is a war on poverty in South Africa and 25% of South Africans go to bed hungry. We need to address these challenges. If we don't ensure that JET is legitimate, we are setting ourselves up for failure.”
Democratic Alliance MP Edwin Bapty said he was most concerned about the social impact of JET and the protection of people's existing livelihoods, and the opportunity for more people to be employed.
“This energy transition is just about finding alternatives for people who are currently employed, and it has to be accompanied by growth,” he said.
ANC MP Vusumzi Nkosi said he was concerned that the migration and closure of coal-fired power plants should ensure there was enough capacity to meet increasing electricity demand.
Nkosi also said he was “not convinced” that JET would boost economic growth and not lead to job losses and the creation of ghost towns due to the closure of coal-fired power plants.
Rudy Dix, director of the Office of Project Management in the Office of the President, said in response to questions that the department is managing the transition “at a pace that the country can afford that does not hurt workers and the economy.”
“Japan is one of the countries with a higher concentration of carbon dioxide emissions per capita than, for example, China or the EU, and the reason for this relatively high proportion is that most of our energy is “This is because it is coal-based and accounts for 42% of total emissions,” he said.
“If we can transition and have a much better energy mix, it's not just about renewables. It includes gas, it includes nuclear.”
He said that 85% of energy is currently generated by coal-fired power plants, while the energy mix of countries such as China and EU countries consists of 60% coal, gas and nuclear energy. , said it was important to move the energy mix away from carbon intensity. And 40% is renewable energy.
Mr Dix said it was “fundamental” that the transition be fair. “The fairness element is to ensure this is a long-term transition. We have to take our workers and our communities with us, and we have to find an alternative.”
He said the coal value chain remains an important part of the mining sector and the decommissioning schedule is not based on power plants being forced to close, but rather as the plants age and reach the end of their useful life. He added that this was the reason.
“There are about 170,000 workers in the entire value chain and about 70,000 in the coal sector. Indeed, the majority of our coal will continue to be exported to the EU, Australia and China. “Many of our power plants will continue to exist into the 2030s, 40s and 50s,” he said.
He said the coal-fired power plants Kusile and Madupe would remain in operation until 2050 or 2060.
