Molly Ayala
South Africa's electricity sector is dominated by the state-owned enterprise Eskom, which generates approximately 95% of the country's electricity. Eskom operates a range of notable power stations, including Kendal Power Station and Koeberg nuclear power station, the only nuclear power plant in Africa. South Africa's electricity production has traditionally relied heavily on coal, but the country is now increasingly investing in renewable energy sources such as wind, solar, hydropower, and nuclear power. The South African government has also implemented various initiatives to promote renewable energy and reduce greenhouse gas emissions, such as the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
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What You'll Learn
Koeberg nuclear power station
Koeberg has two pressurised water reactors based on a French design, rated at 0.93 GW net power each, with a combined generating capacity of 1,830 MW, or 1.86 GW in total. The power station was constructed to be the sole provider of power in the Western Cape, as fossil-fuel power stations were deemed too small and expensive to be viable. Nuclear power was considered a more economical option than transporting coal to the existing power stations, and the construction of new fossil-fuel power stations would have been challenging due to clean-air legislation requirements.
The Koeberg nuclear power station is cooled by cold water from the Atlantic Ocean, pumped through an isolated circuit at 80 tons per second. The low and intermediate-level waste from the power plant is transported by road in steel and concrete containers to a rural disposal site at Vaalputs, 600 km away in the Kalahari Desert. The spent fuel is stored on-site in special pools equipped with high-density racking.
Koeberg has faced several challenges, including an attack by the armed wing of the ANC during its construction in 1982, which caused significant damage and delays. In 2002, Greenpeace activists accessed the station to hang an anti-nuclear protest banner, and in 2005, the power station experienced technical difficulties that led to power cuts and voltage dips. In 2010, 91 staff members were contaminated with cobalt-58 dust in an incident confined to the station.
Despite these issues, Koeberg is considered one of the safest nuclear power plants in the world and has been awarded the NOSCAR status multiple times by the National Occupational Safety Association. In 2020, Eskom announced plans to replace six steam generators, and Unit 2 of the power station underwent extensive maintenance to extend its operational lifespan by 20 years. This aligns with South Africa's plans to phase out coal-fired power plants and reduce greenhouse gas emissions by increasing the use of nuclear and renewable energy sources.
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Eskom's debt crisis
South Africa's electricity is primarily generated by the state-owned enterprise Eskom, which generates approximately 95% of the electricity used in the country. Eskom operates a number of notable power stations, including Kendal Power Station and Koeberg nuclear power station in the Western Cape Province, the only nuclear power plant in Africa.
Eskom has, however, been facing a significant debt crisis. Eskom's debt rose from 440 billion rand to 488 billion rand at the end of March 2020. As a result, the South African government has had to take on more than half of Eskom's debt to help strengthen its balance sheet and enable it to restructure. The debt relief comes with strict conditions, including that the funds can only be used for debt and interest payments, and that Eskom's capital expenditure will be restricted to transmission and distribution.
There are several factors that have contributed to Eskom's debt crisis. One key factor is the increase in the price of coal since 2008-2010 due to market competition from India and China. Eskom uses low-grade coal, the price of which has been driven up by the demand from these countries. Another factor is commercialisation, which has led to the costs of electrification being solely loaded onto Eskom. Additionally, corruption and wasteful expenditure have also played a role, with the costs of certain projects being financed with new loans at higher interest rates.
To address the debt crisis, the "Eskom Transformed: Achieving a Just Energy Transition for South Africa" report has proposed several interventions. These include a forensic audit of Eskom's debt, restructuring the debt to manage it using surpluses, and ending the expensive REI4P programme. The report also highlights the need for a fundamental rethinking in the government's approach to the problem, including a shift towards renewable energy sources.
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South Africa's coal consumption
South Africa is one of the largest producers and consumers of coal in the world. In 2016, the country consumed 202,298,474 tons of coal, ranking 7th globally for coal consumption. South Africa's coal consumption accounted for about 2.36% of the world's total consumption. The country also produces more solar and wind energy by terawatt-hours than any other country in Africa.
South Africa holds 35,053 million tons of proven coal reserves as of 2016, ranking 8th in the world and accounting for approximately 3.08% of the world's total coal reserves. The country has proven reserves equivalent to 173.3 times its annual consumption levels, which means it has about 173 years of coal left at current consumption levels. South Africa exports 30% of its coal production, and coal is the country's third-largest source of foreign exchange.
The use of coal in South Africa dates back to the Iron Age (300–1880 AD), when charcoal was used to melt iron and copper. However, large-scale exploitation of coal did not occur until the mid-19th century. Today, the largest coal deposits in South Africa are found in the Ecca deposits, which cover around two-thirds of the country. The five largest coal mining companies in South Africa account for around 85% of all production. These companies are Anglo American plc, South32's South Africa Energy Coal, Sasol Mining, Glencore Xstrata, and Exxaro.
While coal is a major source of energy in South Africa, the country is working to reduce its reliance on coal and increase its use of renewable energy sources. In 2018, 6.6% of electricity produced in South Africa came from renewables such as wind, hydropower, and solar power. South Africa has developed the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) to bring more renewable energy projects to commercial operation. The country aims to decommission 34 GW of coal-fired power capacity by 2050 and build at least 20 GW of renewable power generation capacity by 2030.
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Renewable energy sources
South Africa has been taking steps to transition from coal-based electricity generation to renewable energy sources. The country has set a target of generating 77,834 megawatts (MW) of electricity by 2030, with a significant contribution from renewable sources.
The South African Renewable Initiative (SARi) was launched to increase electricity production from renewable sources. The initiative aims to build funding mechanisms for renewable investment without imposing an economic burden on the country. The government has also reduced subsidies to coal production and coal-based electricity to manage the budget and encourage the transition to renewables.
The National Energy Regulator of South Africa (NERSA) implemented the Renewable Energy Feed-In Tariff (REFIT) in 2009 to reduce carbon-based power generation and increase the use of renewable energy sources. Initially, the feed-in tariffs applied to wind energy, hydropower, and concentrated solar power (CSP), and were later expanded to include biomass and solar photovoltaics.
South Africa has also developed the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) to attract more IPPs to the sector and diversify its energy mix. The program has been successful in bringing renewable energy projects to commercial operation, with a significant decline in costs for wind and solar PV technologies.
Solar energy in South Africa has high potential due to the country's geographic location, which receives large amounts of solar radiation. The implementation of solar parks, such as the one in the Northern Cape region, is expected to deliver significant amounts of annual solar energy to the country. Additionally, solar energy systems have high initial costs but typically return on investment within 5 to 8 years, making them a low-cost source of energy compared to traditional non-renewable resources.
Other renewable energy sources in South Africa include wind power, hydropower, biomass, and small hydro. The country has set a goal of installing 17.8 GW of renewable energy capacity by 2030, with an estimated investment of $35.6 billion.
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Electricity imports and exports
South Africa is the largest producer of electricity in Africa, and it trades electricity with member nations of the Southern African Development Community (SADC). In 2016, South Africa imported 10,555,000 MWh of electricity, which covered 5.10% of its annual consumption. In the same year, the country exported 16,549,000 MWh of electricity.
Eskom, a South African electrical utility firm, generates approximately 95% of the electricity used in South Africa. The company operates a number of notable power stations, including Kendal Power Station and Koeberg nuclear power station in the Western Cape Province, which is the only nuclear power plant in Africa. Eskom's total nominal capacity was 44GW as of March 2019, with coal-fired power stations making up 83% of the nominal capacity mix and generating just over 90% of the total energy in 2018.
South Africa has been transitioning towards renewable energy sources, with 6.6% of electricity produced in the country in 2018 coming from renewables such as wind power, hydropower, and solar power. The country has developed the Renewable Energy Independent Power Producer Procurement Program (REIPPPP), which has successfully brought renewable energy projects to commercial operation. As of 2018, renewable power sources accounted for just under 3% of South Africa's national electricity supply, up from a baseline of 0% in 2010.
South Africa's per capita greenhouse gas emissions are the highest in Africa, and the country is the world's 14th largest emitter of greenhouse gases. As a result, South Africa is planning to shift away from coal in the electricity sector, aiming to decommission 34 GW of coal-fired power capacity by 2050 and build at least 20 GW of renewable power generation capacity by 2030.
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Frequently asked questions
The primary source of electricity in South Africa is coal, which accounted for 88% of electricity production in 2017.
Eskom, a South African electrical utility firm, generates approximately 95% of electricity used in South Africa.
Sources of renewable energy in South Africa include wind power, hydropower, solar power, and biomass.
Nuclear power accounts for 3.2% to 5% of South Africa's electricity output.
South Africa plans to build at least 20 GW of renewable power generation capacity by 2030, with a focus on wind and solar energy.
