Energy in South Africa

South Africa has a large energy sector, being the second largest economy in Africa.

Total Primary Energy Supply in South Africa, 2012

The country consumed 227 TWh of electricity in 2018.[1] The vast majority of South Africa's electricity was produced from coal, with the fuel responsible for 88% of production in 2017.[2] South Africa is the 7th largest coal producer in the world.[2] As of July 2018, South Africa had a coal power generation capacity of 39 gigawatts (GW).[2]

South Africa is planning to shift away from coal in the electricity sector. The country aims to decommission 34 GW of coal-fired power capacity by 2050.[2] It also aims to build at least 20 GW of renewable power generation capacity by 2030.[3]

South Africa is the world's 14th largest emitter of greenhouse gases.[2]

South Africa aims to generate 77,834 megawatts (MW) of electricity by 2030, with new capacity coming significantly from renewable sources to meet emission reduction targets.[4]

Overview
Energy in South Africa[5]
Population

(million)

 Prim. energy

(TWh)

 Production

(TWh)

 Export

(TWh)

 Electricity

(TWh)

 CO2-emission

(Mt)

200445.51,5251,814279226343
200747.61,5621,856254239346
200848.71,5641,895203232337
200949.31,6751,868158224369
201050.01,5921,889199240347
201250.6237368
Change 2004-109.8%4.4%4.1%-29%6.0%1.0%
Mtoe = 11.63 TWh, Prim. energy includes energy losses

Coal
Main article: Coal in South Africa

Around 77% of South Africa's energy needs are directly derived from coal[6] and 92% of coal consumed on the African continent is mined in South Africa.[7] According to their official website, this is unlikely to change very much in the next few decades, as there is considered to be a "relative lack of suitable alternatives to coal as an energy source." The mining done natively in South Africa is split 51/49 between underground and open-cast mining. This mining is relatively concentrated; 11 mines account for 70 percent of the output.[8]

South Africa was the sixth top hard coal producer in 2009: 247 Mt hard coal, below Australia 335 Mt and Indonesia 263 Mt and above Russia 229 Mt. South Africa was the fifth top hard coal net exporter in 2009: 67 Mt hard coal of the world total hard coal export 836 Mt.[9]

In 2009 247 Mt hard coal production is 247 Mt*0.564 toe/Mt*11.630 TWh/toe = 1620 TWh and export 67 Mt*0.564 toe/Mt*11.630 TWh/toe = 439 TWh.

Coal and environment

Coal production and use creates in South Africa Coal combustion wastes (CCW), coal mine wastes (AMD) and toxic coal land fires. Coal combustion wastes (CCW), contain toxic substances like arsenic, cadmium, chromium and lead. Hundreds of South African old coal mines are filled with sulphate salts, heavy metals and carcinogenic substances like benzene and toluene. This AMD damages wildlife and spreads illness and disease. According to Greenpeace most shockingly is eMalahleni 'place of coal', Mpumalanga province, surrounded by 22 collieries and steel, vanadium and manganese plants. One of the biggest old mines is the Transvaal and Delagoa Bay (T&DB) mine, closed in 1953. 60 km downstream from Emalahleni AMD leaked into the water supply in 2006 and 2007 killing thousands of fish, crocodiles and freshwater turtles and poisoning the water used by communities. Coal fires continue in the disused mines.[10]

Coal business

Coal mine companies include Ingwe Collieries Limited, Anglo Coal (formerly Amcoal), Sasol, Eyesizwe, and Kumba Resources Limited, which together accounts for 85% of the saleable coal production.[8]

Electricity
See also: List of power stations in South Africa

As of 2015, 85% of people in South Africa have access to electricity.[11] In 2008 electricity was produced 241 TWh with coal. In 2008 electricity production + imports – exports – losses was 232 TWh.[12]

South Africa's solar energy capacity is growing rapidly. It leads the African continent in its adoption of solar photovoltaic (PV) and concentrating solar power (CSP) capacity.[11] The country added almost 780 MW in solar PV and CSP in 2013–2014[11] and plans to significantly expand its CSP capacity by 2030.[13]

The government owned national power utility Eskom dominates the country's electricity sector. With 27 operational power plants generating over 95% of the country's electricity and over 40% of all electricity on the African continent making it one of the ten largest power utilities in the world. However government's inability to keep Eskom's generating capacity up with economic and population growth due to a lack of investment by government has created a large energy shortage and led to an energy crisis in late 2007. This has forced the company to implement loadshedding in specific areas of the country at certain times to reduce pressure on the national grid and initiate an ambitious program to increase energy production.[14][15] This has led to speculation by the national newspaper, the Mail and Guardian, that the country might face a complete grid failure.[16]

A postcard photograph circa 1907 of the Kimberley Municipal Compound. The Kimberley Power plant with its tall chimney stack opened in 1882 can be seen in the centre of the image.

History

Prior to the establishment of Eskom the provision of electricity was dominated by municipalities and private companies. The city of Kimberley was the first user of public electricity in South Africa when it installed electric streetlights run off a coal fired power plant in 1882 to reduce crime at night.[17]:5 The first central power station and distribution system in South Africa consisting of a 150 kW generator with two boilers and located at Cape Town Harbour was completed in 1891 to supply power to government buildings in the nearby city.[18] In 1893 the town (now neighbourhood) of Wynberg in Cape Town opened a power station to provide power to a local tram system and public streetlights.[18] This was followed by the first municipal power station built by the City of Cape Town in 1895 with the construction of the Graaff Electric Lighting Works to power 775 streetlights.[19] Not all early power stations were successful, such as the short lived President Street Power Station in Johannesburg. Constructed in 1906, the use of unsuitable fuel in an experimental engine design lead to an explosion in 1907.[20]

Eskom was founded by the Electricity Act of 1922 which allowed for the establishment of a government owned non-profit company to provide electricity. In 1948 Eskom bought out the Victoria Falls and Transvaal Power Company with government support for £14.5 million (roughly equivalent to £2.55 billion in 2017) to become South Africa's primary electricity provider. Eskom dropped its non-profit mandate in the late 1970s and government control over the company was expanded in 1998 with the passing of the Eskom Amendment Act.[21]:5–8

Renewable energy
Main article: Renewable energy in South Africa

The portion of renewable energy as a percentage of final energy consumption in 2012 was 16.9%. Most of that was from the burning of traditional biofuels for heating.

Source:[22]

In terms of share of GDP in 2012, South Africa was the fourth largest investor in renewable power in the world after Uruguay, Mauritius and Costa Rica. That rate of investment is expected to continue. Renewable energy will play a larger role in future.[23]

South Africa's per capita greenhouse gas emissions are the highest in Africa.[24]

South Africa's commitment to renewable energy lags behind that of China, India, Brazil, and Russia. South Africa receives more than twice as much sunshine than Germany, where over 15 percent of the national electricity supply comes from renewable sources.[25][26][27][28]

Government incentives

"South Africa's National Energy Regulator (NERSA) announced 31 March 2009 the introduction of a system of feed-in tariffs designed to produce 10 TWh of electricity per year by 2013. The feed-in tariffs announced were substantially higher than those in NERSA's original proposal. The tariffs, differentiated by technology, will be paid for a period of 20 years.

NERSA said in its release that the tariffs were based, as in most European countries, on the cost of generation plus a reasonable profit. The tariffs for wind energy and concentrating solar power are among the most attractive worldwide.

The tariff for wind energy, 1.25 ZAR/kWh (€0.104/kWh) is greater than that offered in Germany and more than that proposed in Ontario, Canada.

The tariff for concentrating solar, 2.10 ZAR/kWh, is less than that in Spain, but offers great promise in the bright sunlight of South Africa. NERSA's revised program followed extensive public consultation.

Stefan Gsänger, Secretary General of the World Wind Energy Association said in a release that "South Africa is the first African country to introduce a feed-in tariff for wind energy. Many small and big investors will now be able to contribute to the take-off of the wind industry in the country. Such decentralised investment will enable South Africa to overcome its current energy crisis. It will also help many South African communities to invest in wind farms and generate electricity, new jobs and new income. We are especially pleased as this decision comes shortly after the first North American feed-in law has been proposed by the Government of the Canadian Province of Ontario".[29]

However, the feed-in tariff was abandoned before being promulgated in favor of a competitive bidding process launched on 3 August 2011. Under this bidding process, the South African government plans to procure 3,750 MW of renewable energy: 1,850 MW of onshore wind, 1,450 MW of solar PV, 200 MW of CSP, 75 MW of small hydro, 25 MW of landfill gas, 12.5 MW of biogas, 12.5 MW of biomass, and 100 MW of small projects. The bidding process comprises two steps:

  • Qualification phase. Projects are assessed based on structure of the project, legal, land acquisition and use, financial, environmental consent, technical, economic development and bid guarantee
  • Evaluation phase. Compliant bids are then evaluated based on: (1) price relative to a ceiling provided in bid documentation, accounting for 70% of the decision, and (2) economic development, accounting for 30% of the decision.

The first round of bids was due on 4 November 2011. The SA government is expected to announce preferred bidders before COP17 in December. PPA's are expected to be in place by June 2012. Projects should be commissioned by June 2014, except CSP projects which are expected by June 2015.

The average indexed bid prices (2012) for the supply of energy in the first bid window for the various renewable energy technologies were:

  • Concentrating solar power (CSP): R2,69 per kWh
  • Solar photo-voltaic (PV): R2,76 per kWh
  • Wind: R1,14 per kWh

The average indexed bid prices (2012) for the supply of energy in the second bid window

  • Concentrating solar power (CSP): R2,51 per kWh
  • Solar photo-voltaic (PV): R1,65 per kWh
  • Wind: R0,90 per kWh
  • Small hydro: R1,03 per kWh

The average indexed bid prices (2013) for the supply of energy in the third bid window

  • Concentrating solar power (CSP): R1,64 per kWh
  • Solar photo-voltaic (PV): R0,99 per kWh
  • Wind: R0,74 per kWh
  • Landfill gas: R0,94 per kWh
  • Biomass: R1,39 per kWh

Eskom claims a standard electricity production price (2012)of R0.31 per kWh (Eskom-predominately Coal and Nuclear),[30] however energy generated from Eskom's new coal power plants have been estimated to be R0.97 per kWh.

Controversies

Secret price contracts between Eskom and the Australian mining company BHP Billiton less than half Eskom's reported production price in the period.[31]

Many abandoned mines have been burning since the 1940s. Persistent and toxic mine chemical leakages pollute waterways and kill animals. In 2006, about 80% of South Africa's coal exports was in Europe.[10]

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See also

References
  1. "South Africa - Countries & Regions". IEA. Retrieved 3 August 2020.
  2. "The Carbon Brief Profile: South Africa". Carbon Brief. 15 October 2018. Retrieved 3 August 2020.
  3. "South Africa Energy Outlook – Analysis". IEA. Retrieved 16 June 2020.
  4. "Renewables in, coal out: South Africa's energy forecast". Renewable Energy World. 18 October 2019. Retrieved 16 June 2020.
  5. IEA Key World Energy Statistics Statistics 2013, 2012, 2011, 2010, 2009 Archived 7 October 2013 at the Wayback Machine, 2006 Archived 12 October 2009 at the Wayback Machine IEA October, crude oil p.11, coal p. 13 gas p. 15
  6. "Coal". Department of Energy (South Africa). Retrieved 8 January 2010.
  7. "International Energy Outlook 2009, Chapter 4 – Coal". Energy Information Administration. 27 May 2009. Retrieved 14 January 2010.
  8. "Energy Sources: Coal | Department: Energy | REPUBLIC OF SOUTH AFRICA". www.energy.gov.za. Retrieved 23 January 2020.
  9. IEA Key energy statistics 2010 Page 15
  10. The True Cost of Coal Greenpeace 27 November 2008 pages 48–53
  11. "Africa 2030: Roadmap for a Renewable Energy Future" (PDF). IRENA. Retrieved 16 June 2020.
  12. IEA Key energy statistics 2010 Pages 25,56
  13. Willson, Miranda; Anchondo, Carlos (10 June 2020). "Most Clean Energy Tech Is Not on Track to Meet Climate Goals". Scientific American. Retrieved 16 June 2020.
  14. Jasson Urbach (9 August 2012). "The electricity crisis – from bad to terrible". Moneyweb. Retrieved 10 August 2015.
  15. Sipho Hlongwane (12 January 2012). "Hey Eskom, remember 2008?". Daily Maverick. Retrieved 10 August 2015.
  16. KATE WILKINSON (11 December 2014). "Does South Africa face an electricity grid collapse?". Mail & Guardian. Retrieved 10 August 2015.
  17. Holtzhausen, Jacobus Petrus (March 2012). "A comparative analysis of the coverage of the South African electrical energy crisis during the period 2005-2010 by Cape Town newspapers" (PDF). Stellenbosch University. Retrieved 21 December 2018.
  18. "Eskom Heritage: FIRST CENTRAL POWER STATION - 1891". Eskom. Archived from the original on 31 December 2018. Retrieved 21 December 2018.
  19. Fox, Justin & Westwood, Alison (2016). Secret Cape Town (PDF). Cape Town: JONGLEZ. p. 68. ISBN 978-2-36195-140-5.CS1 maint: multiple names: authors list (link)
  20. J Shorten, The Johannesburg Saga, ‘The City Electricity Department,’ page 599 ff.
  21. Conradie, S. R.; Messerschmidt, L. J. M. (2000). A Symphony of Power: The Eskom Story. Johannesburg: Chris van Rensburg Publishers. p. 77.
  22. "Global Tracking Framework 2015". The World Bank. Archived from the original on 5 September 2015. Retrieved 14 October 2015.
  23. "RENEWABLES 2014 GLOBAL STATUS REPORT". REN21. Retrieved 30 March 2015.
  24. Laboratory, Oak Ridge National. "Carbon Dioxide Information Analysis Center (CDIAC)". cdiac.ess-dive.lbl.gov. Retrieved 26 November 2017.
  25. http://www.tips.org.za/files/184.pdf
  26. "Statistics South Africa Category Archives: Energy". 27 July 2017. Retrieved 25 November 2017.
  27. "CO2 Emissions from Fuel Combustion: 2011Highlights". IEA. Archived from the original on 17 April 2010. Retrieved 17 October 2011.
  28. "World's Largest Solar Park to be in South Africa?". CleanTechnica. 26 October 2010. Retrieved 17 October 2011.
  29. "South Africa Introduces Aggressive Feed-in Tariffs" , Paul Gipe, Contributing Writer, 10 April 2009
  30. "Renewable Energy IPP Procurement Programme: Window two Preferred Bidders' announcement". Department of Minerals and Energy. Retrieved 13 July 2013.
  31. Who's holding us back? Full report. Greenpeace, 23 November 2011
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